Free e-book: Discover the world of AIoT
E-book: Discover the world of AIoT

AI in IoT

Develop Connected Systems with Intelligence

Seize the opportunities in the rapidly growing AIoT market

US$ 8.4 Bn

Global industry value in 2022

US$ 58.4 Bn

Estimated market size value in 2031

24.6%

CAGR from 2023 to 2031

A revolutionary investment

AI quickly becomes a must-have technology, transforming markets to the next level, and IoT is an excellent example of this process.

The application of AI in IoT enables the next step in efficiency improvement, reduced costs, and enhanced customer satisfaction for various industries by allowing local data processing and decision-making, improved automation, predictive analysis, and many other functions.

All those benefits and greater convenience for the end-user will make AIoT a determining factor in competitiveness. Leaders in the AIoT industry are investing significantly in R&D to expand the technology and their offerings even further.

Leverage our experience

Learn how to build an AIoT Strategic Roadmap to adapt and develop your Smart Product according to the latest trends while maintaining the highest cybersecurity standards.
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Where AI meets IoT

AIoT (Artificial Intelligence of Things) integrates AI technologies with Internet of Things (IoT) devices and systems.

It combines the strengths of AI algorithms with the connectivity and data-gathering abilities of IoT devices to create solutions capable of making intelligent decisions without human input.

The AI technologies in AIoT vary in complexity - from basic rule-based systems to more advanced machine learning algorithms and neural networks.

The application of AI in IoT is transforming industries by improving efficiency, enhancing decision-making, and enabling predictive functionalities.
AI + IoT diagram

Layers of the AIoT systems

01

Edge devices

encompass physical hardware equipped with sensors or actuators to gather data from the environment or interact with it, as well as the components required for on-device AI processing.

02

On-device AI

refers to algorithms that operate directly on or near the hardware, enabling more intelligent decision-making based on the device’s usage and user behavior.

03

The connectivity layer

encompasses communication protocols and networks, such as Wi-Fi, cellular networks, or other wireless technologies, facilitating data transmission from IoT devices to the cloud.

04

Cloud layer

System-wide AI computations are executed in the cloud, which hosts the virtual representation of physical devices known as digital twins. AI algorithms can analyze data from sensors, IoT devices, and other sources through the digital twin API, allowing them to interact with real-world assets based on the data analysis outcomes.

05

Swarm intelligence

In AIoT, swarm intelligence algorithms facilitate distributed decision-making, adaptive learning, and resilience across a defined group of assets and environments. These algorithms enable interconnected IoT devices to autonomously collaborate, exchange information, and coordinate actions, enhancing complex systems' efficiency, scalability, and robustness.
AI + IoT diagram #2

Benefits of AIoT

Advanced analytics & large-scale data collection

Predictive maintenance & anomaly detection

Enhanced continuous monitoring

Better understanding of data context

Personalized experiences

Automation and efficiency

Improved security

Real-time network optimization

Free e-book: Discover the world of AIoT

needCode Whitepaper

Free e-book: Discover the world of AIoT

needCode Whitepaper

Free e-book: Discover the world of AIoT

needCode Whitepaper

Where can AI in IoT help your growth?

AI IoT devices monitor equipment performance, enabling predictive maintenance by identifying potential issues before they lead to failures. This minimizes downtime and lowers maintenance costs, making it more valuable in manufacturing or logistics industries.

Edge AI allows for real-time data processing directly on IoT devices. This is important for smart cities and industrial automation, where fast responses to data help improve efficiency and keep systems running smoothly.

By integrating AI with Wireless Sensor Networks (WSN), businesses can optimize production processes and monitor real-time conditions, such as temperature, pressure, and equipment performance. Real-time monitoring continuously detects anomalies, helps reduce risks, and improves decision-making in many industries.

AI lays the groundwork for personalizing user experiences by analyzing data that reflects user behavior and preferences. This allows NLP (Natural Language Processing) systems to respond to human interactions, adapt accordingly, and deliver contextually relevant services. As a result, businesses can enhance customer satisfaction and foster greater loyalty.

AI-powered IoT devices can autonomously make decisions based on data analysis, including automating repetitive tasks, adjusting settings, triggering actions, or adapting dynamically to real-time conditions. This automation enhances efficiency, reduces errors, cuts operational costs, increases system agility and responsiveness, and minimizes latency in decision-making.

Analyzing patterns and identifying anomalies in IoT networks by AI can significantly enhance holistic security. AI algorithms can detect and even address security threats. Adaptive security measures enhance the system's capacity to respond to evolving threats and vulnerabilities, helping businesses safeguard their IoT environments and ensure the confidentiality of IoT data.

AI's impact on IoT: A transformative distinction

Traditional IoT systems rely on sending data to the cloud for analysis, which can result in bandwidth limitations and latency. Integrating AI at the edge - the place where data is generated - reduces the need to send all data to the cloud, allowing devices to process data and make decisions in real-time. Edge AI improves system responsiveness and reduces network load.

Improve core outcomes with AI in IoT

01

Lower latency

Processes data locally for faster decision-making.

02

Reduced bandwidth usage

Only critical data is sent to the cloud, minimizing transmission needs.

03

Strengthen privacy

Data is analyzed locally, reducing security risks tied to cloud storage.

04

Performance

AI automates data analysis, leading to faster processing and greater productivity.

05

Cost reduction

Predictive maintenance reduces equipment failures, saving on repair costs and preventing production delays.

06

Scalability

AI-powered IoT systems can scale with the growing business, helping increase volumes of data and complex tasks.

Challenges in AIoT

AI unpredictability

Strict regulations

Increased computation costs

Increased computation costs

AI unpredictability

AI algorithms can be unpredictable due to their complexity and inherent uncertainty in real-world data. This is especially true in applications where safety is crucial, such as autonomous driving vehicles (ADVs) or medical devices. Unpredictable AI algorithms can risk human safety if they fail to respond appropriately to changing conditions or make erroneous decisions.

Strict regulations

Although AI-powered IoT has the potential to enhance devices in sectors like healthcare, automotive, and aviation, regulations such as the EU's AI Act set strict guidelines for its application. For instance, AIoT can be utilized for hospital ward management and monitoring tasks. Still, when it comes to high-risk tools like implanted devices, their use is heavily regulated due to potential risks to fundamental rights, health, or safety. AIoT technologies that present these risks or are prone to misconfiguration must gain approval from regulatory authorities before they can be marketed.

Increased computation costs

Integrating AI with IoT solutions increases the amount of data to be processed, which demands more bandwidth. This can result in higher cloud services and hardware costs and may require reconfiguring the current IT infrastructure. It's also important to consider that implementing AI might not add practical value to your product if your solution doesn't need to process large amounts of data or rely on the insights generated for further actions.

How can needCode help you adopt AIoT and overcome challenges?

From the very beginning of needCode in 2015, we were already working on smart solutions in embedded systems for IoT. Our expertise goes back to the beginnings of AI in IoT, even before the big break in AI technology.

This advantage gives us the knowledge, resources, and skills to understand the AIoT challenges, consult ideas, and suggest fields where they can benefit the most. Our vast experience in key technologies that power AIoT (such as cloud computing, Big Data, Machine Learning, data analytics, computer vision, generative AI, PRA, embedded systems, and cybersecurity) is the foundation for developing and deploying AIoT technology in your organization. Additionally, we propose innovations that are both cutting-edge and practical.

Whether you're seeking consultation on an AIoT Strategic Roadmap or Cybersecurity, need to optimize or develop a smart product, needCode is here to be your trusted technology partner. Reach out, and let's explore how your business can thrive by integrating AI with IoT!
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Industries

AIoT Process and Technology Overview

There are four main building blocks and three main process stages in an industrial AIoT implementation

The four building blocks of an industrial AIoT implementation

The technology stack of industrial AIoT solutions consists of four main building blocks:
hardware, connectivity, software, and security
Building blocks of AIoT implementation

The three main process stages of an industrial AIoT implementation

The AIoT process progresses from data management to model engineering to production deployment

(assuming the data acquisition infrastructure is in place)
three main process stages of an AIoT implementation

Case study

Xtrava AI monitoring system

Xtrava's AI monitoring system

In collaboration with Xtrava Health, we developed a smart monitoring solution: Butterfly.care. This system processes real-time data from wearable devices, enabling immediate decisions and reducing the need for constant cloud communication.

It extended battery life​, increased operational efficiency, and reduced data transmission costs.
Read full case study

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CEO
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Manufacturing

Modern manufacturing machines are typically equipped with IoT sensors that capture performance data. AIoT technology analyzes this sensor data, and based on vibration patterns, the AI predicts the machine's behavior and recommends actions to maintain optimal performance. This approach is highly effective for predictive maintenance, promoting safer working environments, continuous operation, longer equipment lifespan, and less downtime. Additionally, AIoT enhances quality control on production lines.

For example, Sentinel, a monitoring system used in pharmaceutical production by IMA Pharma, employs AI to evaluate sensor data along the production line. The AI detects and improves underperforming components, ensuring efficient machine operation and maintaining high standards in drug manufacturing.

Logistics & supply chain

IoT devices - from fleet vehicles and autonomous warehouse robots to scanners and beacons - generate large amounts of data in this industry. When combined with AI, this data can be leveraged for tracking, analytics, predictive maintenance, autonomous driving, and more, offering greater visibility into logistics operations and enhancing vendor partnerships.

Example: Amazon employs over 750,000 autonomous mobile robots to assist warehouse staff with heavy lifting, delivery, and package handling tasks. Other examples include AI-powered IoT devices such as cameras, RFID sensors, and beacons that help monitor goods' movement and track products within warehouses and during transportation. AI algorithms can also estimate arrival times and forecast delays by analyzing traffic conditions.

Retail

IoT sensors monitor movement and customer flow within a building, while AI algorithms analyze this data to offer insights into traffic patterns and product preferences. This information enhances understanding of customer behavior, helps prevent stockouts, and improves customer analytics to drive sales. Furthermore, AIoT enables retailers to deliver personalized shopping experiences by leveraging geographical data and individual shopping preferences.

For instance, IoT sensors track movement and customer flow, and AI algorithms process this information to reveal insights into traffic patterns and product preferences. This ultimately leads to better customer understanding, stockout prevention, and enhanced sales analytics.

Agriculture

Recent research by Continental reveals that over 27% of surveyed farmers utilize drones for aerial land analysis. These devices capture images of crops as they are and transmit them to a dashboard for further assessment. However, AI can enhance this process even further.

For example, AIoT-powered drones can photograph crops at various growth stages, assess plant health, detect diseases, and recommend optimal harvesting strategies to maximize yield. Additionally, these drones can be employed for targeted crop treatments, irrigation monitoring and management, soil health analysis, and more.

Smart Cities

Smart cities represent another domain where AIoT applications can enhance citizens' well-being, facilitate urban infrastructure planning, and guide future city development. In addition to traffic management, IoT devices equipped with AI can monitor energy consumption patterns, forecast demand fluctuations, and dynamically optimize energy distribution. AI-powered surveillance cameras and sensors can identify suspicious activities, monitor crowd density, and alert authorities to potential security threats in real-time, improving public safety and security.

For example, an AIoT solution has been implemented in Barcelona to manage water and energy sustainably. The city has installed IoT sensors across its water supply system to gather water pressure, flow rate, and quality data. AI algorithms analyze this information to identify leaks and optimize water usage. Similarly, smart grids have been introduced to leverage AI to predict demand and distribute energy efficiently, minimizing waste and emissions. As a result, these initiatives have enabled the city to reduce water waste by 25%, increase renewable energy usage by 17%, and lower greenhouse gas emissions by 19%.

Healthcare

Integrating AI and IoT in healthcare enables hospitals to deliver remote patient care more efficiently while reducing the burden on facilities. Additionally, AI can be used in clinical trials to preprocess data collected from sensors across extensive target and control groups.

For example, intelligent wearable technologies enable doctors to monitor patients remotely. In real-time, sensors collect vital signs such as heart rate, blood pressure, and glucose levels. AI algorithms then analyze this data, assisting doctors in detecting issues early, developing personalized treatment plans, and enhancing patient outcomes.

Smart Homes

The smart home ecosystem encompasses smart thermostats, locks, security cameras, energy management systems, heating, lighting, and entertainment systems. AI algorithms analyze data from these devices to deliver context-specific recommendations tailored to each user. This enables homeowners to use utilities more efficiently, create a personalized living space, and achieve sustainability goals.

For example, LifeSmart offers a comprehensive suite of AI-powered IoT tools for smart homes, connecting new and existing intelligent appliances and allowing customers to manage them via their smartphones. Additionally, they provide an AI builder framework for deploying AI on smart devices, edge gateways, and the cloud, enabling AI algorithms to process data and user behavior autonomously.

Maintenance (Post-Release Support)

When your product is successfully launched and available on the market we provide ongoing support and maintenance services to ensure your product remains competitive and reliable. This includes prompt resolution of any reported issues through bug fixes and updates.

We continuously enhance product features based on user feedback and market insights, optimizing performance and user experience.

Our team monitors product performance metrics to identify areas for improvement and proactively addresses potential issues. This phase aims to sustain product competitiveness, ensure customer satisfaction, and support long-term success in the market.

Commercialization (From MVP to Product

Our software team focuses on completing the full product feature range, enhancing the user interface and experience, and handling all corner cases. We prepare product software across the whole lifecycle by providing all necessary procedures, such as manufacturing support and firmware upgrade.

We also finalize the product's hardware design to ensure robustness, scalability and cost-effectiveness.

This includes rigorous testing procedures to validate product performance, reliability, and security. We manage all necessary certifications and regulatory compliance requirements to ensure the product meets industry standards and legal obligations.

By the end of this phase, your product is fully prepared for mass production and commercial deployment, with all documentation and certifications in place.

Prototyping (From POC to MVP)

Our development team focuses on implementing core product features and use cases to create a functional Minimum Viable Product (MVP). We advance to refining the hardware design, moving from initial concepts to detailed PCB design allowing us to assemble first prototypes. Updated documentation from the Design phase ensures alignment with current project status. A basic test framework is established to conduct preliminary validation tests.

This prepares the product for real-world demonstrations to stakeholders, customers, and potential investors.

This phase is critical for validating market readiness and functionality before proceeding to full-scale production.

Design (From Idea to POC)

We meticulously select the optimal technology stack and hardware components based on your smart product idea with detailed use cases and feature requirements (Market Requirements Document / Business Requirements Document). Our team conducts thorough assessments of costs, performance metrics, power consumption, and resource requirements.

Deliverables include a comprehensive Product Requirements Document (PRD), detailed Software Architecture plans, an Initial Test Plan outlining validation strategies, Regulatory Compliance Analysis to ensure adherence to relevant standards, and a Proof of Concept (POC) prototype implemented on breakout boards.

This phase aims to validate the technical feasibility of your concept and establish a solid foundation for further development.

If you lack a validated idea and MRD/BRD, consider utilizing our IoT Strategic Roadmap service to gain insights into target markets, user needs, and desired functionality. Having a structured plan in the form of an IoT Strategic Roadmap before development begins is crucial to mitigate complications in subsequent product development phases.