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How AI and IoT are Redefining Smart Homes

Mimicking and connecting human behaviors at home

AI software is in the news, and in our homes.

ChatGPT is an artificial intelligence (AI) chatbot developed by OpenAI and launched in November 2022. You may have heard or seen news stories about essays, articles and dissertations being “written” by this AI system, which essentially mimics human intelligence using vast amounts of data.

AI is now also a major player in home automation.

Smart home systems are designed to simplify lives, save money, conserve energy and potentially enhance home security. But both AI and the Internet of Things (IoT) can translate raw sensor data from connected devices into enhanced behavior designs. AI can learn and anticipate the homeowner’s wants. Home builders are taking notice.

“Home automation is increasingly widespread as newer technologies such as the Internet of Things and artificial intelligence become more generally accepted,” says Pekka Ramula, founder of ONPASSIVE, an artificial intelligence and machine learning software development company. “Smart homes have indeed evolved into a useful tool for doing daily tasks.”

Smart Home Stats

Smart home technologies have been gaining momentum over the years. Experts predict automation in U.S. homes will reach 53.9% at some point this year, based on Wonder’s latest studies. Statista also reports that smart home sales revenue is projected to hit $195 million by 2025. That’s more than double the sales revenue of 2020, which amounted to $92 million.

What is a Smart Home?

According to Petra Industries, the term “smart” originally comes from the acronym “Self-Monitoring Analysis and Reporting Technology.” But “smart” also stems from the notion of allowing previously inanimate objects—from cars to basketballs to clothes—to talk back to us and even guide our behavior.

A smart home is equipped with network-connected products (i.e., “smart” products connected via Wi-Fi, Bluetooth or similar protocols) for controlling, automating and optimizing functions such as temperature, lighting, security, safety or entertainment. Most are operated either remotely by a phone, tablet or computer or use a separate system within the home itself. These systems can be set up to be wireless, hardwired or both.

Related: Custom Installed vs. DIY Home Technology

Smart Home Devices

Based on a recent survey from Value Penguin, 65% of Americans have at least one smart home device, and many purchased the smart technology because it’s better for the environment.

Potential Disadvantages to Smart Home Devices

Some experts express concerns that smart home technology could pose a security risk in that products are connected to networks and could be hacked. It may, at times, require additional work for homeowners to track passwords and monitor the security of the product(s). Some devices are initially more expensive than counterpart products. Additionally, there is a fairly steep learning curve for people who may not be tech savvy.

In a Nutshell

By leveraging both innovation and technology with AI and IoT, smart homes make it possible to improve and simplify lives. Smart devices that communicate with each other are revolutionizing the way people do things, use energy and interact with their home products. The capabilities of smart home systems and devices will only improve as AI and IoT technologies further evolve. The possibilities are endless.



  • Valarie Rose Johnson

    Valarie is Editor-at-Large of Colorado Builder and has a 25-year, award-winning career as a publisher, editor and writer for local, regional, national and international publications. Valarie is a Colorado native and enjoys hiking, traveling, meditating, kayaking, yoga, reading and spending time with her husband and family. She can be reached at [email protected] or (303) 502-2523.

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