Logo Header Menu

AI and IoT: two sides of the same coin

The market is seeing significant investments in the convergence of AI and IoT, and its already begun creating new markets and opportunities AI and IoT: two sides of the same coin image

In straightforward terms, the Internet of Things (IoT) is all about having devices connected to the internet, so they’re able to respond to situations based on the data they collect.

As the IoT’s business potential continues to be realised through new and innovative use cases, it’s received a lot of hype.

But is IoT, in itself, the golden child? And, isn’t it the data collected that’s important? After all, without data and the ability to interpret it, IoT is just a bunch of sensors collecting information that can’t be used.

Nevermind IoT! What about ROI?

It’s an important question to ask; ultimately, it pertains to figuring out just how enterprises can derive value from their IoT deployments.

To be honest, the status-quo around current IoT models aren’t good enough. The very concept of transferring massive volumes of data collected by vast numbers of sensors is neither sustainable or affordable.

Using data intelligence to grow your business and gain competitive advantage

With four use cases, Information Age looks at how to grow a business using data, while gaining advantage over the competition. Read here

Back in 2017, Cisco published results from a survey showing how enterprises considered 76% of their IoT initiatives failures, while a majority thought their IoT initiatives looked good on paper, they turned out to be more complicated than initially expected.

IoT promised the world of business so much; with it, enterprises could gain more insights, champion remote operations and improve efficiency. Instead, they just got more data (as if ‘big data’ hadn’t disappointed us enough already).

AI to the rescue?

But thanks to AI there’s hope; at least, that’s what Deloitte LLP’s managing director David Schatsky seems to think. Speaking with Information Age, he explained why he thinks AI’s ability to quickly wring insights from data makes it a capable accompaniment to IoT deployments.

“For so many years, people have been saying ‘we’re collecting so much data, and we don’t know what to do with it’ but I believe AI is partly an answer to this problem,” he said. “With AI, large amounts of information can be collected, and essential patterns and insights from it can be found and automated; simplify the very process of making use of data.”

Innovation in mining with IoT and AI monitoring technology

Like many industries, mining is being transformed by technologies like the Internet of Things (IoT), artificial intelligence (AI) and machine learning

He’s not alone; it appears the market is responding to this very realisation as well; Gartner predicts that by 2022, more than 80% of enterprise IoT projects will include an AI component, up from only 10% today.

According to Gartner, while the technology landscape for AI is complex and will remain so through 2023, with many IT vendors investing heavily in AI, it is hopeful enterprises will be able to achieve good results with AI from a wide range of IoT information, from video, still images, speech and network traffic activity to sensor data.

AI and ML role in IoT’s potential

According to Schatsky, AI will be great for IoT in areas such as increasing operational efficiency and enhancing risk management. For him, it’s all about predictive analytics, AI and ML makes it possible to identify patterns in constant streams of data.

He said: “Data could be collected from the sound equipment is making, the temperature that the equipment is generating, the vibrations or the smell etc. and it could be indicative of a change from normal to abnormal.

“So the hypothesis is that you can capture this data and use it to detect when something is abnormal in an automated way and use that to predict when a failure may occur allowing you to schedule a repair or maintenance in an orderly way.”

Debunking myths about IoT projects

How can enterprise win support for IoT projects while overturning traditional IT management concepts that aren’t appropriate for IoT project planning?

In manufacturing, Deloitte found that predictive maintenance can reduce the time required to plan maintenance by 20–50%, increase equipment uptime and availability by 10–20%, and reduce overall maintenance costs by 5–10%.

Through AI, enterprises are also able to monitor more data points; this is paying dividends in areas like fleet management. Cloudera, for example, claims its fleet management AI solutions can cut downtime for fleet vehicles monitored by Navistar devices up to 40%.

Enabling new products and services

Schatsky also believes that combination of AI and IoT can spawn new and improved products and services, Schatsky said: “One of the best examples, that everybody seems to know about is these smart speakers, like Alexa and Siri. Neither of these products would exist without the combination of both IoT and AI.”

AI is the speech recognition, and the IoT is the fact that it’s a connected device that could help can collect and respond to what you’re saying.

Furthermore, he pointed out that thanks to AI, an enterprise can use IoT devices to collect data from the products they are selling and generate insights about their usage.

He added: “Having devices that can have embedded intelligence, thanks to AI, opens up a whole of host of new products that couldn’t have existed before.”

7 industries that will be radically changed by the IoT

What will the transformative impact of the IoT be on a number of sectors in the coming years, and in what areas will this impact be felt?

Enterprises are also finding ways to monetise on AI insights by selling services around them, claimed Schatsky.

“Imagine a maker of construction equipment that can sell maintenance contracts at a manageable cost because they understand when thing are going to fail.

“So, it enables kinds of services that weren’t really possible before because we were operating blind and couldn’t have cost-effectively offered that service.”

Challenges

Of course, combing AI and IoT is no walk in the park; not only does it require a hefty investment, but it also requires new skills and expertise.

An ability to manage the data that’s collected, however, is perhaps the most salient challenge.

“Companies often believe that they have a lot of data that’s just ripe for analysing with AI and getting value from it,” warned Schatsky. “But a lot of times, it’s more potential than reality because the data may not be in the right place or format or perhaps it’s not clean. So one of the big challenges is just being an effective manager of the data that you have.”

Related to this topic of IoT, it’s also important to remember that building AI algorithms that have intelligence is often just a piece of the overall solution. The more significant challenge is integrating all the devices and data.

Latest news

divider
Digital Transformation
No-code app-builder Appy Pie allows small business to create their own apps

No-code app-builder Appy Pie allows small business to create their own apps

24 June 2019 / The shift to mobile is well on its way. Mobile has already overtaken TV in [...]

divider
Automation
RPA software market grew 63.1% in 2018, says Gartner

RPA software market grew 63.1% in 2018, says Gartner

24 June 2019 / RPA software revenue grew 63.1% in 2018 to $846 million, making it the fastest-growing segment [...]

divider
Cyber Innovation
Tech Nation’s cyber security cohort: Red Sift’s company profile

Tech Nation’s cyber security cohort: Red Sift’s company profile

24 June 2019 / Information Age has partnered with Tech Nation to help explore 20 of the UK’s leading cyber security [...]

divider
IoT and M2M
Enterprise IoT and data breaches: what you need to know

Enterprise IoT and data breaches: what you need to know

24 June 2019 / Enterprise Internet of Things (IoT) devices can make company operations more efficient and productive, especially [...]

divider
Cyber Innovation
Democratising technology for cyber security and the power of AI

Democratising technology for cyber security and the power of AI

24 June 2019 / Democratising technology for cyber security — sounds like a nice idea. And, it’s entirely necessary. [...]

divider
News
Deploying automation: the success rate is high, but obstacles include resistance to change

Deploying automation: the success rate is high, but obstacles include resistance to change

21 June 2019 / ‘Resistance is useless’ said the Vogon guard in Douglas Adams’ Hitch Hikers Guide to the [...]

divider
News
UK’s digital technology industry is 25% larger than previously thought

UK’s digital technology industry is 25% larger than previously thought

21 June 2019 / Companies previously classified as, for example, manufacturing are now also embracing new technologies such as [...]

divider
Automation
Best and worst use cases of robotic process automation and its outlook for the future

Best and worst use cases of robotic process automation and its outlook for the future

21 June 2019 / Over the last year, organisational understanding of robotic process automation (RPA) has come a long [...]

divider
Cybersecurity
Strangers in your inbox: safeguarding against business email compromise

Strangers in your inbox: safeguarding against business email compromise

21 June 2019 / It’s hard to think of a business that doesn’t depend on email as an essential [...]

Do NOT follow this link or you will be banned from the site!

Pin It on Pinterest