AIoT and Organizational Transformation: A Comprehensive Framework for Strategic Implementation and Performance Enhancement

Abstract

A combination of Artificial Intelligence with the Internet of Things into the AIoT is a radical shift in the work of organizations. It is not a mere automation but rather an adaptive, learning system which redefines structure and productivity. We discuss the AIoT ecosystem in this paper, focusing on its technical structure, theoretical basis, and its use in various industries. We make significant contributions: (1) a fivestage maturity model by which AIoT is adopted, and (2) three primary failure modes which can be met during implementation, and (3) a complete risk-assessment framework, which addresses cybersecurity, privacy, and workforce consequences, technical architecture, theory, industry applications, and strategic realization. We clarify the reasons why conventional metrics of productivity would fail to recognize the real value of AIoT and why we should offer a maturity model to implement it successfully. Based on economics, organizational theory, and behavioral science, we demonstrate how AIoT reduces transaction costs, advances decision-making and creates new competitive advantages. The research of sectors in healthcare, manufacturing, retail, and others reveals viable trends of deployment. Some of the central issues addressed in the article are integration, cybersecurity, privacy, and workforce change. We provide road maps, human-centered design, and strategy action structures. It is concluded that the success of AIoT demands focus on technical, organizational, and human aspects, and outlines 5 tangible steps a company should undertake when embarking on the change process.