Internet of Things revolutionized by AI: The perfect combination

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  Quantumrun Foresight
• March 9, 2022

Insight summary

The Internet of Things (IoT) is transforming our world by embedding computing devices in everyday objects, enabling them to communicate over the internet. With a projected market revenue of USD 1.1 trillion by 2025, IoT is shaping the future of technology, from smart homes to self-driving cars. However, the rapid evolution of this technology presents challenges in safety and security, requiring vigilant measures to keep up with its development.

Internet of Things context

IoT describes computing devices embedded in everyday objects, allowing them to exchange data over the internet. This technology aims to simplify the lives of consumers, with applications ranging from smart temperature sensors to voice-activated speakers in homes. The global market for IoT is expected to grow significantly, reaching USD 1.1 trillion by 2025.

This growth is driving the development of various other technologies, including robots, sensors, and controllers, all of which are shaping the future architecture of the internet. However, technology is advancing faster than the frameworks needed to manage it, posing both challenges and opportunities for modern tech companies. A significant shift is occurring from personal to cloud computing, with industries building their infrastructure around cloud technology, enabling the growth of IoT.

Artificial intelligence (AI) is also emerging as a critical driver behind IoT growth. One prominent example is the Tesla autopilot system, which combines sonars, GPS, radars, cameras, and specialized hardware to control the car's movement. According to Statista, there will be more than 75 billion IoT connected devices by 2025. The connectivity that makes these devices useful also makes them vulnerable. 

Disruptive impact

AI-driven IoT is poised to disrupt various industries, including home construction, airlines, manufacturing, and oil rigs. Smart sensors are already enhancing efficiency and enabling new capabilities in airlines, automobiles, and household appliances. The integration of AI and IoT is becoming inseparable, impacting human lives in profound ways, and this trend is expected to continue.

Robots are gaining capabilities through internet connectivity, and experts predict that the next generation of IoT will incorporate them into networks. This development will lead to offshore robots performing remote work and advanced smart home systems directing household robots to complete daily chores. The fusion of AI and IoT is not just about automation; it's about creating intelligent systems that adapt and respond to human needs.

The applications of AI-driven IoT are vast, from predicting and preventing accidents in smart buildings to monitoring aircraft errors and signaling maintenance needs on oil rig equipment. The convergence of AI and IoT is not merely a technological advancement; it's a paradigm shift that will redefine how we live, work, and interact with the world around us.

Implications of the Internet of Things

Wider implications of IoT may include:

• AI-driven IoT enabling smart buildings to foresee events and enhance security by averting accidents like flooding, fire, or short circuits.


• Utilization of smart sensors to monitor and prevent errors on aircraft, enhancing safety and reliability.


• Signaling when preventative maintenance is necessary on oil rig equipment, avoiding breakdowns and costly repairs.


• Integration of IoT in healthcare for remote monitoring and personalized treatment, improving patient outcomes.


• Enhancing energy efficiency in manufacturing through smart automation, reducing waste and environmental impact.


• Facilitating intelligent transportation systems, optimizing traffic flow, and reducing accidents.

Questions to consider

• How do you think the integration of AI with IoT will impact modern-day consumers the most?


• When do you think AI-driven IoT will see widespread adoption in the manufacturing industry?