By Srinath Sridharan

A decade ago, the term Internet of Things (IoT) was buzzing in every conversation. It was touted as the next big thing, a technology that would make our lives smoother and richer than silk. Businesses and governments alike rallied behind its potential, with the promise of a futuristic utopia — creating smarter cities, homes, and industries. In India, IoT was a core idea in the push for modernisation, from the launch of the Smart Cities Mission to the wider Digital India programme.

Fast forward to today — while IoT is very much present, it feels as though the spotlight has shifted. Artificial intelligence (AI) has taken centre stage as the hottest topic in tech. Once upon a time, IoT was supposed to be everywhere — embedded in the objects around us, transforming data into actionable insights that could revolutionise everything from traffic management to healthcare. AI has now eclipsed IoT in terms of both hype and industry focus. The emergence of generative AI models has captivated both businesses and consumers, presenting AI as a transformative force with immediate impact.

But let’s take a step back. It’s not that IoT failed or disappeared — it’s just no longer the sole protagonist. In many ways, IoT has become the quieter partner in an ever-growing, ever-evolving tech ecosystem. Think of IoT as the eyes and ears — gathering data, sensing the environment, and providing the raw material for the brain, AI, to process. While IoT collects data, AI takes that data and turns it into something useful, like making real-time decisions, predicting outcomes, or automating actions. Together, they present a new hybrid: the Artificial Intelligence of Things (AIoT), a global market expected to grow to over $250 billion by 2030.

Over the past decade, IoT has evolved from a nascent technology into a global phenomenon, with over 14.4 billion connected devices in 2023. This growth has been driven by advancements in wireless technologies, the miniaturisation of sensors, and the rise of cloud computing. Yet, in India, the narrative hasn’t always been this seamless. The dream of IoT-driven urban utopias — smart cities, where sensors in every corner would streamline governance and improve daily lives — has not materialised as quickly as anticipated. The mission has rolled out interconnected systems in select cities, with command centres monitoring traffic, air quality, and civic amenities in real-time. These systems proved invaluable during the pandemic, tracking hospital beds and oxygen supply. However, many cities are yet to see cohesive citizenry-civic impact, and if things haven’t improved, it’s not technology’s fault.

On an individual level, IoT devices have integrated into our lives — think smartwatches monitoring heart rates or home security systems watching our doors. In industries, IoT sensors give manufacturers control over production processes, monitoring everything from machinery health to energy consumption. Indian offices and factories are adopting IoT for predictive maintenance and efficiency, but the revolution hasn’t been as transformative as promised.

One reason why AI dominates conversation is its vast scale of applications. IoT devices globally are expected to cross 18 billion by 2024, but AI’s ability to process enormous amounts of real-time information — analysing video streams or crunching data from millions of sensors — has made it indispensable. Companies have redirected much of their investment to AI, attracted by its promise of immediate returns.

In India, this challenge is compounded by policy inertia. Despite the strong push for Digital India, our participation in global standards fora has lagged, limiting wider IoT adoption. Regulatory frameworks for IoT security are still catching up, leaving businesses vulnerable to cyber threats. The absence of a unified global body regulating IoT standards presents challenges, with varying regulations across regions creating barriers to interoperability and scalability. This fragmentation complicates compliance and stifles innovation, as companies struggle to deploy IoT solutions effectively. In a world where technology transcends borders, the lack of cohesive regulation risks turning opportunity into vulnerability. Without harmonised global standards, innovation is slowed and fragmented, leaving businesses to navigate a maze of rules, while the promise of IoT remains just out of reach.

As IoT and AI continue to commercialise, their broader business adoption will depend on their ability to drive higher revenues and profit margins. For governments, it’s about enhancing agility in decision-making and governance. For citizens, IoT and AI hold the potential to alleviate civic chaos and improve administrative efficiency. However, for these technologies to transform governance systems, significant investments in capacity-building, training, and intent are required at all levels. It’s not about high-profile project launches or trending hashtags — real value will come when grassroots governance adopts these technologies to enhance public services, urban management, and civic engagement.

IoT is simply evolving. India’s digital transformation mirrors its analogue precedent — relying on bureaucratic processes, physical verification, and paperwork that hindered efficiency. With IoT-driven smart governance and AI-led data processing, we could move toward a future where technology enables faster decisions and improved services. India’s future doesn’t lie in choosing one technology over another, but in integrating them in a way that suits its unique challenges. IoT, AI, and cloud computing should be synergised to solve problems.

AI, a 70-year journey of human ambition and computational evolution, has finally found its stage, while IoT, its younger sibling, listens and connects — quietly building the foundation for AI’s rise. IoT and AI are disruptors reshaping the fabric of human society. Without thoughtful regulation, their impact can bring profound benefits or unforeseen consequences, challenging us to navigate this dual-edged transformation responsibly. With trillions of IoT sensors encircling the globe, humanity may soon find itself dreaming in data, streaming every movement, moment, and thought to unseen sensors as the line between reality and digital surveillance blurs into an all-seeing network.

While AI and IoT will undeniably shape our future, the real impact will depend on how we choose to wield them. Technology is inherently neutral — it can empower individuals, streamline governance, and enhance quality of life, but it can also lead to increased surveillance, inequality, and environmental harm if misused. The key lies in human intelligence and intent. Leaders, policymakers, and individuals must guide these technologies with thoughtful decisions, ensuring they are aligned with societal goals, ethical standards, and sustainable development. In the end, it is not the capabilities of AI and IoT that will define our future, but the choices we make on how to use them.

The author is a policy researcher and corporate advisor.

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