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Companies around the world are beginning to see the benefits of incorporating artificial intelligence (AI) with the Internet of Things (IoT). Recent years have seen a boom in investment and new products in this space, with an increasing number of companies exploring the benefits that using the two in partnership can bring.
The combination of the two technologies has been found to support the development of ‘smart machines’ that are capable of boosting efficiency, profitability, productivity and more. It has also been found to surpass value expectations, gives companies a competitive advantage, as well as boosting revenue and aiding innovation.
AI And IoT Combine To Create ‘Smart Machines’
The use of AI together with the IoT is beneficial to companies for a number of reasons, but the root of the advantage this combination provides lies within the pair’s ability to create ‘smart machines’ that have the power to simulate intelligent behavior, allowing machines and devices to work on complex tasks, independent of human involvement. The ability to create these smart systems supports innovation, which can have the effect of enhanced productivity and profitability.
AI has developed rapidly over recent years, growing its capabilities, and becoming more efficient at managing increasingly complex situations, making it beneficial to a growing number of applications. In addition, IoT has also been growing at an accelerating rate, aided by the establishment of cloud computing, the falling cost of data storage, and the increasing capabilities of data transmission.
This has led to the two being more scalable and able to function with minimal human intervention. The pairing of these two technologies is helping to bring a shift in how companies in all sectors are running their day to day activities. The combination of the two technologies is allowing for more streamlined processes, more efficient production, less wastage, more accurate monitoring and assessments, powerful predictions and more.
Recently, SAS, Deloitte, Intel and IDC teamed up to survey global business leaders about their use of IoT and AI technologies. The results showed that heavy use of AI was the most significant predictor in gaining value from the IoT. The study found that the combination of using AI alongside IoT operations resulted in business leaders’ value expectations being surpassed in 90% of cases.
Further to this, participants of the study also admitted that they had employed the use of both technologies in order to appear to have a competitive edge in comparison to those companies who had only employed IoT on its own. The companies were also able to gain a real competitive advantage, in using AI along with the IoT to enhance employee productivity (87% of respondents witnessed this effect), streamlined operations (in 86% of cases) and reduce operating costs (85% reported this impact).
Increase in Revenue
The study also found that increased revenue was another impact of the combination of AI with the IoT. In fact, just over a third of respondents claimed that increased revenue was the most important factor in using the two technologies. Revenue can be increased through the smart systems that AI and the IoT can create, which can assist companies in increasing productivity, minimizing reliance on human works, reducing waste, enhancing efficiency and more.
The area of research and design is also heavily benefiting from the pairing of technologies. Again, the smart systems supported by the technologies are allowing for greater innovation, and faster and more efficient modeling techniques that require fewer resources. This means that companies can make innovations faster, at a lower cost, helping them to enhance profitability and gain a competitive edge over other companies in the same space.