|In this digital era, every business owner wants to have a smart business. Fortunately, this can be possible with the emergence of technologies like artificial intelligence and the Internet of Things / Photo by: Monkey Business Images via Shutterstock|
In this digital era, every business owner wants to have a smart business. Fortunately, this can be possible with the emergence of technologies like artificial intelligence and the Internet of Things. Technology is becoming smarter, aiding in reforming the enterprise industry. Even large companies are leveraging new technologies to systemize and enhance business growth.
Forbes, a global media company focusing on business, investing, technology, entrepreneurship, leadership, and lifestyle, reported that the IoT market will grow to 30.7 billion devices in 2020 and 75.4 billion in 2025 from only 15.4 billion in 2015. Research firm Forrester revealed that enterprises are more likely to use IoT compared to smaller companies. While 23% of global enterprise respondents use IoT, only 14% of small and medium-size business (SMB) respondents do.
Nonetheless, both AI and IoT are transforming how people do business today. A survey of global leaders reveals that 90% of the respondents that are heavily using AI in their IoT operations reported exceeding value expectations. Compared to IoT-only enterprises, companies that use both AI and IoT appear more competitive across several business indicators, including operating costs, innovation, and productivity.
“In these results, we are seeing that organizations working with IoT data realize that if they want to get the real value out of the data, they need AI and analytics,” said Oliver Schabenberger, COO at SAS.
Why IoT Needs AI in Transforming Businesses
Most of the time, people use AI and IoT as interchangeable terms but these trending technologies are different in many ways. AI enables machines to imitate human behavior intelligently, while IoT is a network of devices and sensors connected to the internet that can collect and connect data. When AI is applied to IoT, it is called AIoT. This only occurs when AI is combined with IoT infrastructure and IoT operations, data management and analytics. As of now, over 70% of IoT projects have an AI component, and this is expected to increase over the next few years.
AIoT can deliver intelligent and connected systems that are capable of self-correcting and self-healing themselves. Businesses can benefit a lot from this. According to NRX Global, a commercial platform for building, standardizing, and sustaining maintenance master data, AI adds additional value to IoT operations which can make it more efficient. For instance, it can improve decision-making processes as it mainly concentrates on revamping IoT data into more valuable data.
|AI enables machines to imitate human behavior intelligently, while IoT is a network of devices and sensors connected to the internet that can collect and connect data / Photo by: everything possible via Shutterstock|
The data collected through AIoT can be used to develop solutions for the challenges businesses are facing today to ensure efficiency and reliability. This explains why many companies are invested in and committed to AIoT. According to HelpNetSecurity, an independent site that focuses on information security, a study of 450 business leaders about their use of IoT and AI technologies conducted by SAS, Deloitte, and Intel showed that 92% of senior leaders believe that AIoT value exceeds expectations, while 79% are involved in IoT project decisions.
The study found that the top goal of 34% of business leaders for using AIoT is to increase their revenue, followed by improving the ability to innovate (17.5%), offering customers new digital services (14.3%), and decreasing operational costs (11.1%). Companies that use AIoT capabilities report improvements in various aspects, including decreasing costs, improving employee productivity, introducing new digital services, and the ability to speed up operations.
“Today, most organizations using IoT are only at the first ‘visibility’ phase where they can start to see what’s going on through IoT assets. But they’re moving toward the reliability, efficiency and production phases, which are more sophisticated and require stronger AI capabilities,” Melvin Greer, Chief Data Scientist at Intel Americas, said.
How AIoT Can Help Businesses
AIoT can greatly help companies embarking on IoT projects because it can make sense of huge amounts of data. According to DevPro Journal, an online site that features actionable and inspirational articles for B2B software developers looking to build a profitable, sustainable, and fulfilling business, data would only be valuable when it is actionable and available to the people and systems that need it.
One of the ways AIoT can help businesses is through effectively tracking and managing inventory because it gives companies automatically-controlled options. It can track and record patterns of the devices used by the consumers. Businesses can easily interpret that data for improvement and growth while providing a better experience for the users. AIoT systems can also make decisions without the need for direct human involvement, which can significantly reduce unplanned downtime. This would allow for a more productive workflow.
Jay Cei, COO at Ulbrich Steel, a global metal manufacturer, stated that one of his priorities is to gain acceptance for AIoT across the company, despite the fear of employees losing their jobs. “What I really believe is [AIoT] is going to enable them to function at least two levels higher than they can now. I really see these operators functioning as business unit managers as a result of this,” he said.
Individually, AI and IoT are powerful, capable of transforming businesses. But when these two technologies combine, it will enable enterprises to achieve even greater digital transformation. Companies should take advantage of this to maximize their profit and function more efficiently.
|One of the ways AIoT can help businesses is through effectively tracking and managing inventory because it gives companies automatically-controlled options / Photo by: tsyhun via Shutterstock|