AI vs IoT— Understanding the Differences and How Businesses can Benefit from Them

People these days depend considerably on technology. The Internet of Things (IoT) and Artificial Intelligence (AI) are just two of the numerous technologies available these days that encompass not only a great scope but also future prospects. Understanding the differences between AI and IoT will help you determine how to apply them better in your business.

IoT has to do with the internet-working of physical units and devices that are connected together by the internet. This includes electronic devices, cars, actuators and sensors among others. These devices communicate with each other or with the outside environment. IoT is effective at adding digital intelligence to devices, which makes it possible for them to communicate even without the intervention of humans.

Artificial Intelligence, on the other hand, is the concept of machines smartly performing tasks. Through this concept, devices are developed, engineered and created intelligently. These devices can be categorized as general or applied.

General devices usually involve learning subsets of machines where they can fulfill any type of task.

Applied devices involve systems like driving a vehicle or trading stocks— tasks that are more specific. Devices that are created under the AI concept are equipped with a certain capacity to mimic a human’s cognitive function. At the present time there are a number of “smart” devices like the ones on, however these devices aren’t necessarily capable of learning.

Differences Between IoT and AI

Cloud Computing

With AI, cloud computing is equipped with considerable strength, making it possible for machines to think, learn, act and even react like real human beings. AI machines can also help study and analyze information and perceive patterns in order to make decisions real-time.

IoT and cloud computing, on the other hand, aim to increase the efficiency of ordinary duties. Both aim to improve the overall efficiency of mundane activities. However, IoT is known for generating large amounts of data and through cloud computing a pathway is opened up to allow that data to flow.

Data Learning

With AI, the system picks up the activities and errors that are going on in the background to try and evolve so it can perform better and more efficiently. In IoT, the various sensors will have certain data flowing through them. The data gathered is then shared on the internet. All the flowing records in IoT are all stored with the identity then, processed. So, if somebody is going to need data, through analytics, IoT will share these statistics in order to help whomever is making the query.


IoT is considered to be more scalable thanks to being primarily could-based. Thanks to cloud-based structures, there is no need for connections that could become problematic. If scalability is what you are most after, IoT will be to your favor.

Integrating IoT and AI in Business

business agreement computers

In order to make it through the highly competitive business landscape, every individual/company/corporation needs to improve their efficiency and productivity by honing their attention to analytics. Businesses that rely considerably on metrics when making decisions will find considerable value from environments that are connected to the internet compared to those that are still attached to traditional methods.

For your business to transform, change has to take place throughout the organization and should encompass personnel, technology, and operations. Data needs to be sourced and then studied to produce the best possible results. What matters is to combine data from the internet, public, as well as third-parties to fully maximize the use of AI and IoT.