Gartner expects that more than 80%of enterprise IoT will have some degree of AI.
In the AI in IoT market by technology, the ML and deep learning technology segment to hold a larger market size during the forecast period. ML can become a robust analytical tool for vast volumes of data. The combination of ML and edge computing can filter most of the noise collected by IoT devices and leave the relevant data to be analysed by edge and cloud analytic engines.
Internet of Things (IoT) is a growing network of objects that has its own IP address to connect to the internet along with the communication between these physical objects. The AI in IoT market is gaining acceptance globally, owing to its rising demand by industrial sectors, enterprises, companies, and business that have already implemented or are in the process of implementing AI in IoT to efficiently manage work. AI is playing a vital role in IoT as the former has secured its place in numerous sectors, such as vision sensors, to identify accuracy, product orientation, and enhanced process flow by decreasing waste and removing defective products.
By component, the AI in IoT market is fragmented into platforms, services (professional and managed), and software solutions. Focusing on analytics to improve productivity and efficiency is a must for enterprises to survive in today’s competitive business. Combining AI in IoT involves transformation, study of data and clear interpretation of various sourced information. Transformation should take place throughout the entire organization, including technology, personnel, and operations.
“MarketsandMarkets forecasts the global AI in IoT market size to grow from USD 5.1 billion in 2019 to USD 16.2 billion by 2024, at a Compound Annual Growth Rate (CAGR) of 26.0% during the forecast period.”
AI and IoT are combining to provide greater visibility and control of the wide array of devices and sensors connected to the internet. IoT is transforming business models by helping companies move from simply making products and services to companies that give their customers desired outcomes. The combination of IoT and AI is changing many industries and the relationships that businesses have with its customers. Businesses can now collect and transform data into usable and valuable information with IoT.
Individually, artificial intelligence (AI) and the Internet of Things (IoT) are powerful, but when combined, these emerging technologies allow enterprises to achieve true digital transformation. The combination of these two solutions, which is collectively known as a IoT, can disrupt entire industries. Whether an organization is using IoT and AI to engage customers, implement conversational agents for customers, customize user experiences, obtain analytics, or optimize productivity with insights and predictions, the use of IoT and AI creates a dynamic where companies are able to gain high quality insight into every piece of data, from what customers are actually looking at and touching to how employees, suppliers, and partners are interacting with different aspects of the ecosystem.
The combination of AI and IoT is expected to become a multi-billion dollar market by 2023, says ResearchAndMarkets.com.
The advantage of combining AI with IoT – IoT devices collect all the data and transfer it to cloud or any other space where data can be accumulated through the internet. AI acts as the brain of AIoT and helps in decision making and simulating the machines to act or respond.
In this article, we will discuss about 5 specific advantages of AI and IoT that will change the way that businesses operate.
- Enhanced Customer Relationship
- Cost Effective
- Increased Operational Efficiency
- Highly Secured and Safe
- Focus on New Products and Services
1.Enhanced Customer Relationship
With the correct implementation, the benefit from the combination of AI and IoT is not confined only to the employees but also helps to enhance the experience of customers. The guessing game of customer wants, and needs are history now. Enterprises are using these emerging technologies to gather big data about customers in real-time. With the data and technologies available now, businesses can develop products and services that best fit the customer’s needs. AI and IoT both play a significant role in this process. Enterprises are now automating the entire process of organizing data to make sure that the customer can receive a quick and relevant response. Customers are already getting used to receiving a quick and accurate response and reaction. Customer experience can be greatly improved because these devices can learn user preferences and adjust accordingly.
Gartner, Inc. forecasts that the enterprise and automotive Internet of Things (IoT) market will grow to 5.8 billion endpoints in 2020, a 21% increase from 2019. By the end of 2019, 4.8 billion endpoints are expected to be in use, up 21.5% from 2018.
With the current COVID19 situation, most of the firms are under intense pressure to cut costs without losing productivity. AI and IoT can be a solution for saving the expenditure of the firm. AI and IoT can quickly collect and analyse data to determine if a part or procedure has become too expensive to maintain. Early access to the data allows a business to identify cost savings without sacrificing productivity. By identifying cost drivers, an organization can implement changes that lower expenses. These emerging technologies empower leaders to reduce unnecessary spending and to optimize business procedures.
3.Increased Operational Efficiency
Incorporating AI into IoT applications can achieve increased operational efficiency. The machine learning capabilities can process data and make predictions in ways that humans are unable to do. Large sets of data can be calculated in a short period of time with the help of this technology. Based on the calculations, recommendations can be made to make the workplace more efficient. Enterprises are already investing in these technologies to enhance productivity. AI and IoT can spot inefficiencies and recommend best practices to improve the process.
McKinsey found that 82% of enterprises adopting machine learning and AI have gained a financial return from their investments.
4.Highly Secured and Safe
The combination of both AI and IoT can provide an extra layer of security. The combination reduces workplace accidents. By pairing machine learning with machine-to-machine communication, enterprises can predict potential security risks and automate an immediate response. Connected sensors could be leveraged to determine potential environmental safety hazards that workers are unaware of. A safe and secure enterprise can be achieved with these solutions. Many applications pairing with IoT and AI can also help organizations to predict and well manage a variety of risks and threats such as worker safety, cyber threats, financial losses, etc.
5.Focus on New Products and Services
Artificial Intelligence and IoT combination can pave way in creating new and powerful products and services. Collecting and Analyzing huge sets of helps organisations to make smart decisions based on the situations. Natural language processing (NLP) is getting better and better at letting people speak with machines, rather than requiring a human operator. AI is a natural complement to IoT deployments, enabling better offerings and operations to give a competitive edge in business performance.