Technology
AIoT: When Artificial Intelligence Meets the Internet of Things
AIoT: When AI Meets the Internet of Things
The Internet of Things (IoT) is a technology helping us to reimagine daily life, but artificial intelligence (AI) is the real driving force behind the IoT’s full potential.
From its most basic applications of tracking our fitness levels, to its wide-reaching potential across industries and urban planning, the growing partnership between AI and the IoT means that a smarter future could occur sooner than we think.
This infographic by TSMC highlights the breakthrough technologies and trends making that shift possible, and how we’re continuing to push the boundaries.
AI + IoT = Superpowers of Innovation
IoT devices use the internet to communicate, collect, and exchange information about our online activities. Every day, they generate 1 billion GB of data.
By 2025, there’s projected to be 42 billion IoT-connected devices globally. It’s only natural that as these device numbers grow, the swaths of data will too. That’s where AI steps in—lending its learning capabilities to the connectivity of the IoT.
The IoT is empowered by three key emerging technologies:
- Artificial Intelligence (AI)
Programmable functions and systems that enable devices to learn, reason, and process information like humans. - 5G Networks
Fifth generation mobile networks with high-speed, near-zero lag for real time data processing. - Big Data
Enormous volumes of data processed from numerous internet-connected sources.
Together, these interconnected devices are transforming the way we interact with our devices at home and at work, creating the AIoT (“Artificial Intelligence of Things”) in the process.
The Major AIoT Segments
So where are AI and the IoT headed together?
There are four major segments in which the AIoT is making an impact: wearables, smart home, smart city, and smart industry:
1. Wearables
Wearable devices such as smartwatches continuously monitor and track user preferences and habits. Not only has this led to impactful applications in the healthtech sector, it also works well for sports and fitness. According to leading tech research firm Gartner, the global wearable device market is estimated to see more than $87 billion in revenue by 2023.
2. Smart Home
Houses that respond to your every request are no longer restricted to science fiction. Smart homes are able to leverage appliances, lighting, electronic devices and more, learning a homeowner’s habits and developing automated “support.”
This seamless access also brings about additional perks of improved energy efficiency. As a result, the smart home market could see a compound annual growth rate (CAGR) of 25% between 2020-2025, to reach $246 billion.
3. Smart City
As more and more people flock from rural to urban areas, cities are evolving into safer, more convenient places to live. Smart city innovations are keeping pace, with investments going towards improving public safety, transport, and energy efficiency.
The practical applications of AI in traffic control are already becoming clear. In New Delhi, home to some of the world’s most traffic-congested roads, an Intelligent Transport Management System (ITMS) is in use to make ‘real time dynamic decisions on traffic flows’.
4. Smart Industry
Last but not least, industries from manufacturing to mining rely on digital transformation to become more efficient and reduce human error.
From real-time data analytics to supply-chain sensors, smart devices help prevent costly errors in industry. In fact, Gartner also estimates that over 80% of enterprise IoT projects will incorporate AI by 2022.
The Untapped Potential of AI & IoT
AIoT innovation is only accelerating, and promises to lead us into a more connected future.
Category | Today | Tomorrow |
---|---|---|
Edge computing | Smart thermostats Smart appliances | Home robots Autonomous vehicles |
Voice AI | Smart speakers | Natural language processing (NLP) ePayment voice authentication |
Vision AI | Massive object detection | Video analytics on the edge Super 8K resolution |
The AIoT fusion is increasingly becoming more mainstream, as it continues to push the boundaries of data processing and intelligent learning for years to come.
Just like any company that blissfully ignored the Internet at the turn of the century, the ones that dismiss the Internet of Things risk getting left behind.
—Jared Newman, Technology Analyst
Digital Transformation
Mapped: The Number of AI Startups By Country
Over the past decade, thousands of AI startups have been funded worldwide. See which countries are leading the charge in this map graphic.
Mapped: The Number of AI Startups By Country
This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.
Amidst the recent expansion of artificial intelligence (AI), we’ve visualized data from Quid (accessed via Stanford’s 2024 AI Index Report) to highlight the top 15 countries which have seen the most AI startup activity over the past decade.
The figures in this graphic represent the number of newly funded AI startups within that country, in the time period of 2013 to 2023. Only companies that received over $1.5 million in private investment were considered.
Data and Highlights
The following table lists all of the numbers featured in the above graphic.
Rank | Geographic area | Number of newly funded AI startups (2013-2023) |
---|---|---|
1 | 🇺🇸 United States | 5,509 |
2 | 🇨🇳 China | 1,446 |
3 | 🇬🇧 United Kingdom | 727 |
4 | 🇮🇱 Israel | 442 |
5 | 🇨🇦 Canada | 397 |
6 | 🇫🇷 France | 391 |
7 | 🇮🇳 India | 338 |
8 | 🇯🇵 Japan | 333 |
9 | 🇩🇪 Germany | 319 |
10 | 🇸🇬 Singapore | 193 |
11 | 🇰🇷 South Korea | 189 |
12 | 🇦🇺 Australia | 147 |
13 | 🇨🇭 Switzerland | 123 |
14 | 🇸🇪 Sweden | 94 |
15 | 🇪🇸 Spain | 94 |
From this data, we can see that the U.S., China, and UK have established themselves as major hotbeds for AI innovation.
In terms of funding, the U.S. is massively ahead, with private AI investment totaling $335 billion between 2013 to 2023. AI startups in China raised $104 billion over the same timeframe, while those in the UK raised $22 billion.
Further analysis reveals that the U.S. is widening this gap even more. In 2023, for example, private investment in the U.S. grew by 22% from 2022 levels. Meanwhile, investment fell in China (-44%) and the UK (-14.1%) over the same time span.
Where is All This Money Flowing To?
Quid also breaks down total private AI investment by focus area, providing insight into which sectors are receiving the most funding.
Focus Area | Global Investment in 2023 (USD billions) |
---|---|
🤖 AI infrastructure, research, and governance | $18.3 |
🗣️ Natural language processing | $8.1 |
📊 Data management | $5.5 |
⚕️ Healthcare | $4.2 |
🚗 Autonomous vehicles | $2.7 |
💰 Fintech | $2.1 |
⚛️ Quantum computing | $2.0 |
🔌 Semiconductor | $1.7 |
⚡ Energy, oil, and gas | $1.5 |
🎨 Creative content | $1.3 |
📚 Education | $1.2 |
📈 Marketing | $1.1 |
🛸 Drones | $1.0 |
🔒 Cybersecurity | $0.9 |
🏭 Manufacturing | $0.9 |
🛒 Retail | $0.7 |
🕶️ AR/VR | $0.7 |
🛡️ Insurtech | $0.6 |
🎬 Entertainment | $0.5 |
💼 VC | $0.5 |
🌾 Agritech | $0.5 |
⚖️ Legal tech | $0.4 |
👤 Facial recognition | $0.3 |
🌐 Geospatial | $0.2 |
💪 Fitness and wellness | $0.2 |
Attracting the most money is AI infrastructure, research, and governance, which refers to startups that are building AI applications (like OpenAI’s ChatGPT).
The second biggest focus area is natural language processing (NLP), which is a type of AI that enables computers to understand and interpret human language. This technology has numerous use cases for businesses, particularly in financial services, where NLP can power customer support chatbots and automated wealth advisors.
With $8 billion invested into NLP-focused startups during 2023, investors appear keenly aware of this technology’s transformative potential.
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