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In a recent LinkedIn post, Pratiti Tech’s Co-Founder Prashant Anaskure talked about the inevitability that “the worlds of AI and IoT would collide.” He highlighted that IoT devices generate massive volumes of data that can also drive AI solutions.

In recent years, the growing convergence of AI and IoT is evolving into what is known as Artificial Intelligence of Things (or AIoT). With this convergence, AIoT solutions are gaining more industry acceptance. Some industry applications leveraging AIoT technology include smart homes and cities, wearable devices, etc.

Industry experts estimate that the global market for AIoT solutions will reach $83.6 billion by the year 2027. Recent reports also find that AI-enabled edge computing will be the fastest-growing segment within the AIoT market.

But what exactly is AIoT technology, and what are its business benefits? In this blog, let’s learn more about it.

What Is AIoT?

In his post, Prashant shares as good a definition of AIoT as any by calling it a “smart, connected network of devices that can seamlessly communicate.”

Effectively, AIoT is the technology combined with the connectivity of the Internet of Things and the data-driven knowledge enabled by AI. By integrating AI with IoT, AIoT applies AI-powered machine learning techniques to data collected from distributed nodes or devices. This effectively moves machine learning closer to the data source. Hence, this concept is also called Edge AI or Edge Intelligence – as it enables more scalability, efficiency, and robustness.

Here’s how AIoT technology works:

  • AI technology is first embedded into software programs and other infrastructure components, which are then connected with IoT networks.
  • Using APIs, each of the hardware and software components operates and communicates with each other.
  • As IoT-connected devices gather data, the AI component analyzes the data to provide data-driven insights.

As AIoT-generated data is processed at the edge, it means IoT devices require minimum bandwidth to move the data for analysis, thus avoiding any unnecessary delays.

How does AIoT benefit businesses? Let’s discuss that next.

Business Benefits of AIoT

By combining AI with IoT technology, organizations can leverage a host of business benefits. With AI, IoT can move beyond simply gathering and conveying information. AIoT technology creates “smarter” machines that can make accurate decisions without human intervention.

Here are some of the business benefits of AIoT:

1. Boosts Operational Efficiency

With AIoT technology, IoT devices can analyze data faster to reveal useful data patterns and insights. This capability helps organizations improve their operational data-driven insights, automate manual processes, and fix common problems. For example, an industrial facility can use AIoT tools to automate quality inspections and track if industrial applications adhere to operational guidelines.

2. Enables Real-time Data Analytics

Real-time data analytics and monitoring enable organizations to save valuable time and reduce operational interruptions. AIoT solutions enable continuous machine monitoring in industrial facilities for any defects or abnormalities. This, in turn, facilitates predictive maintenance.

AIoT technology minimizes human involvement and delivers accurate outcomes. For instance, AIoT-connected sensors in the oil & gas industry detect oil leaks through remote monitoring.

3. Reduces Operational Costs

AIoT technology can reduce operational costs in any industry in the long run. Intelligent AIoT-enabled systems enable efficient use of available resources. For instance, AIoT-based smart buildings can control light and temperature settings based on human occupancy. Similarly, smart factories can leverage AIoT to reduce the chances of equipment failure and associated escalating costs.

4. Elevates the Customer Experience (CX)

AIoT solutions can also elevate CX by accurately predicting consumer behavior and preferences. For instance, AIoT enables retailers to determine the restocking time or identify the products that have not attracted any consumer visits.

How does AIoT impact companies building software products? Let’s discuss that next.

Impact of AIoT on Software Products

With AI integration, IoT devices are expected to work smarter and have more real-life applications across industries. Among the latest trends, 5G technology will emerge as the most innovative in the AIoT space – enabling faster data transfers with its improved bandwidth.

Besides 5G, Edge AI is also among the key technologies driving the adoption of AIoT solutions. Edge AI technology can reduce data volumes and improve response time.

So, how does AIoT impact the world of software products and applications? Prashant points out the slew of IoT-enabled applications used in smart homes, smart cities, and wearables. The emergence of AIoT poses a different challenge for existing IoT application developers. This requires them to “re-architect” their internal infrastructure and “relook” at how they process data.

The Way Forward

Is AIoT the “next big thing,” or is it all hype? Along with ongoing development in the IoT space, connectivity like 5G and Wi-Fi will continue to drive AIoT-based innovations. On their part, AIoT solutions can benefit many industrial domains, including oil & gas, retail, manufacturing, and healthcare. They can raise a business’s innovation capabilities and nurture improved operational excellence.

As a technology solution provider,  Pratiti Technologies has built years of expertise in technologies like IoT, edge computing, and data analytics. With our IoT expertise, our customers have derived real-time benefits from their IoT investments.

You can benefit from our IoT services, including consulting, development, and testing. Contact us today!

Nitin Tappe

After successful stint in a corporate role, Nitin is back to what he enjoys most – conceptualizing new software solutions to solve business problems. Nitin is a postgraduate from IIT, Mumbai, India and in his 24 years of career, has played key roles in building a desktop as well as enterprise solutions right from idealization to launch which are adopted by many Fortune 500 companies. As a Founder member of Pratiti Technologies, he is committed to applying his management learning as well as the passion for building new solutions to realize your innovation with certainty.

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