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Will AI and IoT really change the way you do business?

The convergence of two groundbreaking technologies is well underway: the combination of the Internet of Things with artificial intelligence is expected to transform many of the tools, devices and processes we use today. But how?

 

Will AI and the IoT really change the way you do business?

The rapid growth of the Internet of Things

The term ‘Internet of Things’ was coined in 1999 by the computer scientist Kevin Ashton. While working at Procter & Gamble, Ashton proposed putting radio-frequency identification (RFID) chips on products to track them through a supply chain.

Fast forward to 2024. It is expected that, by the end of this year, more than 207 billion devices will be connected to the worldwide network of tools, appliances and toys that now make up the Internet of Things (IoT). This is a rapid adoption of technology by anyone’s standards.

The IoT and artificial intelligence

Now, the growing adoption of artificial intelligence (AI) solutions and, especially, generative AI solutions, is set to transform our adoption of IoT technologies – through every stage of the IoT lifecycle.

IoT new product design

The data returned by connected products promises to deliver insights into post-sales product use in ways in which manufacturers and retailers previously had no visibility. Using AI to make sense of these vast quantities of data helps manufacturers to understand when and how their products are being used, spot patterns and, potentially, adapt product design accordingly.

The next step? Generative AI solutions are particularly good at making suggestions based on existing data. Reviewing past iterations of an IoT product to suggest design improvements would be an excellent practical application.


IoT devices with AI at the edge

AI and IoT convergence promises to make connected devices truly “smart”. 

In the industrial setting, AI solutions which analyse industrial data locally and make decisions about preferred responses are likely to be adopted as edge solutions to minimise latency. In this way, automated decision-making capabilities will be introduced close to equipment and systems.

Gartner expects that more than 55% of data analysis by deep neural networks will occur at the point of capture in an edge system by 2025. This is up from less than 10% in 2021.

IoT security

Each new device connected to your network represents a new potential doorway into your systems for cyber attackers. AI-powered security solutions, including AI-powered security information and event management (SIEM) monitoring tools can potentially save many hours of cyber security professionals’ time and help to improve IoT and network security.

In this way, AI is making the addition of more IoT devices less risky.

The IoT and software development

Connected IoT devices can generate vast quantities of data. To turn this data into valuable information that can improve business decision making, organisations require an effective data infrastructure and apps or dashboards which consolidate, analyse and present data in user-friendly formats. 

The development of such data infrastructures, apps and dashboards will be made easier by the introduction of generative AI tools, such as GitHub Copilot. Gartner predicts that by 2026, generative AI will automate 60% of the design effort for new websites and mobile apps. And, by 2025, 30% of enterprises will have implemented AI-augmented development and testing strategies (up from 5% in 2021).

This is great news for the developers of connected devices who can extend the digital services they offer more cost effectively and more rapidly respond to customer requests. It’s also great news for users, who will be more easily able to develop their own dashboards to synthesise information from all their connected IoT devices.

 

Users can query IoT data with natural language

In particular, the adoption of generative AI solutions as a front-end to accessing the data generated by IoT devices will help individuals and organisations to harness the potential of the IoT. Being able to interrogate these vast quantities of data by asking questions in natural language will transform the way we interact with, use and apply the data.

Instead of investing in recruiting and retaining expensive, highly sought-after data scientists, organisations will need to train their staff to become prompt engineers in order to take full advantage of the potential of generative AI.

 

Comparable analysis

For businesses that aren’t in niche sectors, a comparable analysis is a much easier way to calculate a business valuation. By assessing the value of businesses similar to yours, you can arrive at an understanding of the comparable value of your business. While this method is popular, it doesn’t illuminate the specifics of your business for investors and, therefore, is of limited usefulness.

 

Will AI and IoT really change the way you do business?

AI is already changing the way we do business – from the use of generative AI to improve accessibility and the working environment for neurodivergent staff through to the creation of digital twins in an industrial environment to empower manufacturers to safely try out new production strategies.

The combination of AI-powered analysis and decision making with the connected devices we use – or wear – every day will accelerate these changes. In particular, the use of generative AI as a natural language interface into the data and insights generated by the IoT is set to have a transformative impact. 

IDC says, with the new adoption of generative AI, the tech industry is at a seminal moment. Never have we seen a technology emerge with this much executive support, clearly defined business outcomes and rapid adoption.

Whats Next?

Deliver IoT success