Big Data is a well-known term from recent years. Big Data served as a catalyst and foundation for the development of AI technologies as we know them today. Without the advances and insights gained through the analysis of large data sets, the current development and application of AI would not have been possible to the same extent. These consequences from those beginnings show how Big Data, as a key technology, has transformed numerous industries and led to significant advances in efficiency, innovation, and decision-making.
Big Data can be seen as one of the precursors of artificial intelligence (AI) because it provides the foundations and technologies required for the development and operation of AI systems.
Currently, the focus in the industry is on IoT or AI.
Based on previous observations and discussions at trade fairs such as the Hannover Messe, we see a missing connection between IoT and AI. Are companies using the data collected from IoT? What happens to the processed data? Is their purpose to operate IoT applications, or do they serve more than just occupying server capacity?
During our visit to the Hannover Messe, we came across the latest report by Telenor IoT and Omdia. It examines how the strategic integration of artificial intelligence (AI) and the Internet of Things (IoT) can or will transform the industry. The study focuses on the extent to which it will be necessary for companies to integrate AI to remain competitive in today’s digital world.
In a report from 2021, Omdia already predicted that the number of IoT devices would reach nearly 38 billion by the end of 2023 and exceed 82 billion by 2030. Despite the standalone value of IoT applications, managing the vast amounts of data they generate poses a challenge, with the global IoT market producing about one billion gigabytes of data daily. This data flood can overwhelm companies, making it difficult for them to derive valuable insights.
In a sample IoT project (2024) from the German SME, it becomes clear that while data from IoT devices is collected and partially analyzed for specific use cases, structured mass analysis and value extraction are still not in sight. Data often lies on servers for future projects. AI could already be a game-changer for the SME here.
In 2024, the integration of AI into IoT, known as Artificial Intelligence of Things (AIoT), will be essential for companies to remain competitive, according to Omdia.
AIoT transforms smart devices into intelligent systems, enhancing their value for organizations. AI provides analytical tools to extract value from IoT data and achieve significant effects. The integration of AI can take place either at the Edge or in the Cloud, with both approaches offering different advantages, according to ‘IoT Insider‘ (Feb 2024). Cloud computing handles large data volumes and offers scalability, while Edge AI brings low latency, and cost reduction, and addresses security concerns.
The main goal of AI in IoT is to recognize patterns and gain meaningful business insights or automate tasks to improve decision-making processes. Factors driving AIoT adoption in 2024 include competitive dynamics, advancements in semiconductor technology, the optimization of AI models through TinyML, and the increasing use of generative AI.
According to the Omdia IoT Enterprise Survey, over 48% of companies prioritize AI/ML in IoT deployments, and 38% of respondents have fully adopted or are implementing generative AI – (Telenor, Informa Intelligence, ElectronicSpecifier).
The ‘Omdia IoT Enterprise Survey’ examines various aspects of how companies integrate IoT solutions. This annual survey provides insights into strategy, implementation, spending, challenges, supplier preferences, and technology trends across different industries and countries. The 2024 survey, part of a broader report, emphasizes the growing importance of integrating artificial intelligence (AI) with IoT, known as AIoT, to enhance operational efficiency, customer experience, and productivity.
For more detailed insights, including data breakdowns by industry and region, you can view the full report on Omdia’s website or the Telenor IoT forecast report for 2024, which was created in collaboration with Omdia – (Telenor IoT, Informa Intelligence).