AI Shift Redefines Edge Computing Strategies

AI’s integration with edge computing is accelerating as tech firms vie to offer faster, localized data processing — a shift that could reshape retail, supply chains and customer experiences.

Edge computing processes data near where it’s created instead of in distant cloud servers. Companies like Code Metal , which recently secured $16.45 million in funding, are creating AI-driven workflows hoping to reduce product development times. It’s part of a growing shift to edge computing for AI, which could significantly impact commerce.

“AI and Edge Computing have created some fascinating use cases for businesses with brick-and-mortar operations that need to be monitored,” Aaron Allsbrook , CTO of edge computing company ClearBlade , told PYMNTS. “For example, intelligent video analytics can flag onsite issues like low stock, customer dwell times or occupancy rates.”

Experts say the convergence of AI and edge computing could reshape various facets of commerce. Retailers might leverage AI-enhanced edge devices for real-time inventory management and personalized in-store experiences. Manufacturing plants could use AI-powered edge systems to optimize production lines and predict maintenance needs more accurately. In logistics, AI-driven edge computing could enable more efficient route planning and autonomous vehicle operations.

The Drive to Edge Computing

Edge computing is a booming business. Global spending on edge computing is predicted to reach $232 billion in 2024 and will have sustained growth through 2027 to nearly $350 billion, according to IDC .

Code Metal said it is developing a platform that integrates traditional formal-methods-based code analysis with advanced large language models. This approach aims to streamline and improve the edge application deployment process.

“We are on the cusp of a massive transformation in software development, and edge computing stands to benefit the most from this change,” Peter Morales, CEO of Code Metal, said in a news release . “This funding is a testament to the continued growth in edge computing and the challenges companies face as they rethink their software development strategy. With our investors’ support, world-class talent, and customer validation, we are confident that we are on the trajectory to usher in an entirely new wave of edge-powered devices, from robotics to medical devices.”

The convergence of AI and edge computing is part of a broader trend in the tech industry towards decentralized, intelligent systems . This shift is driven by the proliferation of Internet of Things devices and sensors, which has led to an explosion in the amount of data generated. Processing this data at the edge reduces latency and bandwidth usage, which is crucial for time-sensitive applications like autonomous vehicles or industrial control systems.

With more regulations and growing consumer concerns about data privacy, edge computing provides a way to process sensitive information locally without sending it to the cloud. It also ensures continued functionality during cloud connectivity disruptions, which is crucial for healthcare, manufacturing and emergency services.

“Edge computing ensures that sensitive data — such as facial data — remains on a local server, while AI mines the video metadata for critical events,” Allsbrook said. “Without sending personal data to the cloud, Edge can alert onsite staff via Slack, mobile alert, Teams or any notification system to take immediate action.”

This approach, Allsbrook notes, is “massively critical to protect sensitive personal data while bolstering the onsite staff’s ability to drive revenue by acting quickly.”

Cost efficiency is another driver of this trend. By reducing the amount of data transmitted to and processed in centralized data centers, edge computing can lead to savings in data transfer and storage costs .

Challenges for Edge Computing

However, combining AI with edge computing isn’t without its hurdles. Edge devices often lack the power or energy to handle complex AI models. So, to get AI working on these devices, we need to optimize the models carefully to balance performance with the limited resources available.

Security is another concern. Distributed edge devices can present new attack surfaces for cybercriminals, necessitating robust security measures. The lack of widely adopted standards in edge AI can also lead to interoperability issues and fragmentation in the ecosystem.

Despite these challenges, investment in edge AI continues to grow. Major tech companies like Google, Amazon and Microsoft are developing specialized hardware and software solutions for edge AI . Startups are also playing a crucial role in driving innovation in this space.

The impact of edge AI is expected to be particularly significant in sectors such as smart cities, healthcare, agriculture and manufacturing. In smart cities , AI-powered edge devices could optimize traffic flow, manage energy usage and enhance public safety. Edge AI could enable real-time patient monitoring and rapid diagnostic tools in healthcare, which are particularly valuable in remote or resource-constrained settings.

Agriculture could also get a big boost from edge AI, with better precision farming techniques that optimize irrigation , pest control and harvesting. In manufacturing, things like predictive maintenance, quality control and process optimization could all see improvements from AI processing done right at the edge.

As AI and edge computing evolve, their integration offers big advancements across various industries. However, scaling these technologies and dealing with data privacy and security issues are still challenging. In the next few years, we’ll likely see intense competition and innovation as companies strive to fully harness AI at the edge.