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Is the Artificial Intelligence of Things (AIoT) About to Change Your Life Forever?

28th May 2021
Brought to you by
tax cloud
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You encounter Artificial Intelligence (AI) every day. Every time you use your smartphone, scroll through social media, stream music, or click on an online ad, you’re encountering some form of artificial intelligence.

The same goes for the Internet of Things (IoT). For instance, if you’ve installed a home automation system, like Hive for example, or if you use tracking apps to check your parcel deliveries, you’re experiencing the IoT at work. In fact, it’s believed that we’re surrounded by over 10 billion IoT devices in our daily lives.

Although AI and the IoT make life easier, they’re fast becoming obsolete as individual concepts. Like lots of things in life, they’re better when they work together. This is where the Artificial Intelligence of Things (AIoT) comes in.

What is the Artificial Intelligence of Things (AIoT)?

Independently, both AI and IoT offer their self-sufficient benefits. When combined, expect operational, interaction, data management, and analytical improvements.”Crayon

The Artificial Intelligence of Things (AIoT) is the brain of AI combined with the connectivity of IoT to make one big super-power.

Let me explain.

What is AI?

AI can be described as intelligence-driven machines that perform human-like tasks. It’s able to do competently do things like drive a car or write a novel, by collecting data, analysing it and learning what output is needed.

What is the IoT?

The IoT is a network of physical objects which are connected through tech. Each physical object within the network is embedded with sensors and software. This connects the devices, allows data to be passed between them and enables them to talk to each other.

How do they work together to make AIoT?

So, when you mix AI with the IoT it makes AIoT. But what does that really mean?

When AI is added to the IoT, it means that devices can analyse data, make proactive, intelligent, and accurate decisions, and act on them without any human input.

The end goal for AIoT is to allow machines to make accurate decisions without the need for human involvement.

Examples of AIoT include…

AIoT can be seen in things like:

Autonomous vehicles

Tesla is a prime example of AIoT in action: It uses devices like radars, GPS, and cameras to make intelligent and proactive decisions based on the current driving conditions and environment.  For example, if it’s raining, the AIoT combination will sense this and apply the windscreen wipers so you have a safer, smoother drive.

Smart offices

Some companies, like the Terminus Group in Beijing, have installed AIoT to control access, heat and lighting in their office blocks. Sensors and connected cameras transmit real-time data and images about which employees are in the building. This data is analysed and access, temperature and lighting are adjusted automatically.

Smart retail

A connected camera can use facial recognition to identify customers as they walk into a store and gather intel such as age, gender, product preferences and common behaviour patterns. AIoT analyses the data to predict future customer behaviour and inform decisions on purchasing, marketing and sales.

Is the AIoT really necessary?

The Artificial Intelligence of Things can bring incredible benefits to both our personal and work lives.

For example, businesses can use AIoT to gather in-depth insights, analyse them and make better, more informed strategic decisions. And they can use it to get ahead of the competition and become pioneers in their field too. 

But, with the huge uptake of cloud computing, some are questioning whether the AIoT is really necessary?

Cloud computing vs AIoT

Can’t we just connect devices to the cloud, like we do with the IoT, and let the cloud do all of the analysis and decision-making? What’s the point of making the devices themselves intelligent?” – Electronic Design

In short, cloud computing is nowhere near as intelligent, powerful, reliable, or capable as the AIoT. It doesn’t have the ability to cope with the number of connected devices that we’re likely to see in the future. The networks that transport the data between connected devices and the cloud are limited by bandwidth. This means they won’t be able to support the sheer volume of data created by the surge of connected devices. This will slow decisions down and cause delays, which won’t be accepted by us humans.

I mean, would you want the worry of delays and unreliable connectivity hanging over you while driving your Tesla in the rain?

AIoT in Accounting

But how exactly is the world of Accounting likely to be affected by AIoT?

Put simply, AIoT has the potential to reduce the time it takes to complete recurring tasks such as invoicing or reconciling payments by up to 90%.

On top of that, AIoT will reduce (inevitable) human error, therefore improving the quality of work and decreasing the need for costly amends or revisions. This will free you up to focus on the more important tasks such as servicing your clients better or expanding your business.

Plus, embracing AIoT will make you more attractive as both an employer and an accountancy service provider. You’ll be seen as cutting edge and at the top of your efficiency game, not to mention you’ll be streets ahead of the competition that choose to ignore technology and the AIoT that’s coming.

This article was brought to you by Tax Cloud

Tax Cloud is the R&D industry’s first self-service R&D tax claim portal. With an easy-to-follow, step-by-step process to work through and with full support from the R&D tax specialists over at Myriad Associates, you can submit your clients R&D claims to HMRC without needing to employ a specialist R&D tax advisor.

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