4 selected examples of AI×IoT utilization. What will happen to the IoT market in 2023?

1. What is IoT?

1-1. What is IoT?

IoT (Internet of Things) is an abbreviation for "Internet of Things". In Japanese, it is translated as "Internet of Things". Until around 2000, the Internet was only accessible through personal computers. With the advancement of communication technology, it has become common to connect to the Internet from mobile devices such as cell phones, smartphones, and tablets. In addition, with the current trend of digitalization, there is a growing interest in the technology of connecting "things" such as smart speakers, household appliances, and fitness equipment to the Internet. This technology of connecting "things" to the Internet is called IoT.

1-2. IoT Mechanism

Devices equipped with IoT are called IoT devices. IoT devices are equipped with sensors, cameras, microphones, and wireless communication, allowing them to sense the state and movement of objects and acquire data. The basic mechanism of IoT is to transmit the acquired information to people or other objects via the internet. IoT can also be described as a method of connecting objects to the internet to achieve a vast amount of information collection.

2. Synergy between IoT and AI

2-1. What is AI?

Let's clarify the role of AI, which is sometimes confused with IoT. AI is an abbreviation for "Artificial Intelligence". In Japanese, it is translated as "人工知能" (artificial intelligence). It has the function of analyzing data as a brain and its characteristic is that AI itself makes judgments for given tasks.

2-2. Surprisingly Long History of AI

In fact, there is no clear definition for what is called AI. AI assistants such as Siri and Alexa, which are installed on current smartphones and smart speakers, are typical examples of AI, but on the other hand, games that have been around since the 1970s, such as those that can compete against computers, can also be called AI. Unlike IoT, AI does not necessarily have a connection to the internet in terms of its meaning. AI can also be described as something that analyzes data and makes decisions.

2-3. The Role of IoT in AI Development

The compatibility between IoT and AI is excellent. While IoT collects information, AI can analyze it. By combining the two, AI can effectively utilize the data collected by IoT.

 

Let's take a look at the role of IoT in the process of developing AI.

There is a process called machine learning before AI is developed. AI improves its accuracy by repeatedly reading and learning from training data called teacher data in the process of machine learning. The material for this teacher data is big data collected by IoT. In order to improve the effectiveness of machine learning, it is essential to prepare as much teacher data as possible. The role of data collection by IoT is very important in the development of AI.

 

Click here for articles on machine learning and training data
>>What is training data? Explanation from the relationship with AI, machine learning, and annotation to how to create it.

2-4. Synergistic Effect of Combining IoT and AI

The benefits of improving AI accuracy will be directly returned to the IoT devices owned by consumers. By combining IoT and AI, consumers can use more accurate AI while developers can smoothly collect large amounts of data, creating a positive cycle for both parties.

3. Examples of Utilizing IoT and AI Together

Introducing real-life examples of IoT/AI utilization.

3-1. Remote Medical Support with IoT Cameras

IoT is being used to monitor home-based patients. An AI-powered IoT camera is installed in the patient's home to monitor for falls and prolonged periods of inactivity. To protect the patient's privacy, image analysis is only performed after obtaining consent from the family once an abnormality is detected by the AI. The patient can also wear a smartwatch to call for a nurse or perform vital checks from home.

>>Smart Home Medical Care | Home Medical Support Services

3-2. Preventing Loss with IoT Tags

For items that you want to prevent from being lost, such as keys and wallets, a small IoT tag is attached and linked to the user's smartphone. This IoT tag is equipped with IoT technology called "beacon" that uses Bluetooth and has a function to identify the location. When the user with the smartphone moves away from the target object and the beacon's radio waves no longer reach, a notification is sent to the smartphone. By checking the notification, the user can quickly return to the place where the object was dropped. Apple's AirTag, which is also released, is one of the IoT devices that uses this beacon technology.

>>Here's what happened when we tried tracking Apple's lost item tracker "AirTag" by mail

3-3. Store-based Marketing with IoT Devices

This is an example of using beacons. First, fixed beacon devices are installed in the store. Customers are asked to install a mobile app that is linked to the beacon on their smartphones. When customers receive the beacon's signal upon entering the store, they can receive coupons and other novelties on the spot. By understanding customers' behavior in the store, this can lead to more accurate marketing.

>>What are the ways for the retail industry to utilize the popular IoT technology "beacon"?

3-4. Safe Driving Support with IoT Dashcam

In a drive recorder equipped with IoT, information contained in the captured footage is transmitted to the system via the internet. This allows AI to detect dangers and immediately notify the driver. In the future, as IoT-enabled cars like connected cars become more widespread, we can also expect more accurate traffic prediction services to be offered.

>>Reduce Truck Accidents with IoT! Hitachi to Introduce New System for 100,000 Vehicles

4. What are the growth areas in the future IoT market?

 

We will examine the current state of IoT device proliferation and future growth areas.

4-1. IoT Device Penetration Status

This is data that aggregates the number of IoT devices in the world by field.

Source: Created by the author from the 2021 Ministry of Internal Affairs and Communications White Paper on Information and Communications

 

The most popular area of advancement is in the field of communication, which includes smartphones and other mobile devices. The IoT market in this field can already be considered mature. Following this, there is also progress in industries such as smart factories, smart cities, urban infrastructure, logistics, retail, as well as in consumer areas such as household appliances, fitness equipment, and smart speakers.

4-2. Growth Forecast for the IoT Market

What are the expected growth areas in the future IoT market?
This is data predicting the annual average growth rate of IoT devices until 2023.

 

Source: Created by the author from the 2021 Ministry of Internal Affairs and Communications White Paper on Information and Communications

 

The medical field is expected to have the highest growth rate. The growth is expected to be driven by the aging population and related demand. The consumer and industrial sectors, which are already widely adopted, are also expected to continue to have high growth rates. The automotive and aerospace industries, which include self-driving and connected cars, will follow. On the other hand, the communication sector, which has already matured, is expected to have a decrease of 1.7%, and the computer sector is expected to have a decrease of 1.1%, indicating low growth.

4-3. Further Spread of IoT Expected with 5G

Commercial services for 5G, the 5th generation mobile communication system, have started in Japan since 2020. Its maximum transmission speed is said to be 100 times faster (theoretical value) compared to the conventional 4G, enabling stable communication even when multiple IoT devices are connected to the internet simultaneously. With the evolution of communication environment, it is expected that the market for IoT will continue to expand rapidly.

5. Consult with Human Science for AI x IoT

5-1. 48 million records of teacher data creation

"I don't know where to start when it comes to implementing AI."
"I don't know what to ask for when outsourcing."
If you are in such a situation, please consult with Human Science. At Human Science, we participate in AI development projects in various industries such as natural language processing, medical support, automobiles, IT, manufacturing, and construction. Through direct transactions with many companies including GAFAM, we have provided over 48 million high-quality training data. We can handle various annotation projects regardless of industry, from small-scale projects to large-scale projects with 150 annotators.
>>Human Science's Annotation Service

5-2. Resource Management without Using Crowdsourcing

At Human Science, we do not use crowdsourcing and instead directly contract with workers to manage projects. We carefully assess each member's practical experience and evaluations from previous projects to form a team that can perform to the best of their abilities.

5-3. Utilizing the Latest Data Annotation Tools

One of the annotation tools introduced by Human Science, AnnoFab, allows customers to check progress and provide feedback on the cloud even during project execution. By not allowing work data to be saved on local machines, we also consider security.

5-4. Equipped with a security room within the company

At Human Science, we have a security room that meets the ISMS standards in our Shinjuku office. We can handle highly confidential projects on-site. We consider ensuring confidentiality to be extremely important for all projects. We continuously provide security education to our staff and pay close attention to handling information and data, even for remote projects.