Edge Intelligence
September 08, 2024
Over the years, we’ve written about IoT (internet of things) where devices are connected to the cloud, and edge computing, where data is processed near the location where it is generated rather than sending it to a centralized cloud data center. Now with more and more artificial intelligence useage, there’s another term to add to the mix: Edge Intelligence. Edge Intelligence, also known as Edge AI, combines artificial intelligence with edge computing. This approach involves deploying AI algorithms and models directly on local edge devices, such as sensors or Internet of Things (IoT) devices, rather than relying on centralized cloud infrastructure. AI may be getting a lot of attention lately, but it is for good reason. The anticipated growth in just the Edge Intelligence segment for the next few years is at an impressive 24% CAGR (see chart below).
Some key characteristics of Edge Intelligence include:
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Proximity to Data: Edge intelligence processes data close to where it is generated, which reduces latency and improves response times.
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Real-Time Processing: By analyzing data locally, edge devices can make real-time decisions, which is crucial for applications like autonomous vehicles, industrial automation, and healthcare.
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Bandwidth Efficiency: Since data is processed locally, only relevant information needs to be sent to the cloud, saving bandwidth and reducing costs.
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Enhanced Privacy and Security: Keeping data on local devices minimizes the risk of data breaches and enhances privacy.
Use cases for Edge Intelligence include: IoT devices, such as smart home devices and wearable health monitors; self-driving cars; industrial production. All of these use cases benefit from being able to quickly process data and act on it.
Undoubtedly, we’ll be seeing many use cases emerging for Edge Intelligence. The AI space in general is very interesting to Somar as it is revolutionary and underpins the secular changes we are constantly investigating and following. While the “picks and shovels” companies, like NVIDIA are getting a lot of attention for enabling the AI revolution, we believe the application layer is equally as interesting and is the next area that will be making headlines. We look forward to uncovering those emerging stars early for our investors.