Companies that use artificial intelligence (AI) in their Internet of Things (IoT) initiatives see more success than competitors using IoT alone, new research suggests.
In a survey of 450 global business leaders, 90% of those heavily using AI in their IoT operations reported that the value exceeds expectations. What’s more, organisations using IoT with AI appear to be more competitive than IoT-only enterprises by a double-digit margin across a variety of business indicators including employee productivity, innovation and operating costs.
The study, AIoT – How IoT Leaders are Breaking Away, was conducted by SAS, Deloitte and Intel with research and analysis from IDC.
The report defines AIoT (Artificial Intelligence of Things) as decision-making aided by AI technologies in conjunction with connected IoT sensor, system or product data. AI technologies include deep learning, machine learning, natural language processing, voice recognition and image analysis.
Today, companies relying on IoT data to inform their daily decision-making overwhelmingly use it for operational decisions (68%) by employing spreadsheets and other non-AI technology.
However, AI opens the door to more sophisticated and rapid decision making, the report authors argue. It broadens the focus from operational problems like ‘Is the equipment running or not?’ to decisions about supply and demand, product quality and retail merchandising.
“In these results, we are seeing that organisations working with IoT data realise that if they want to get the real value out of the data, they need AI and analytics,” said Oliver Schabenberger, chief operating officer at SAS. “I think it is fair to say that most successful IoT operations are actually AIoT operations.”
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