By Sarah Nicastro, Founder and Editor in Chief, Future of Field Service
I wrote my first article on IoT more than 15 years ago. The buzz around the term then wasn’t entirely dissimilar to the buzz around AI today. However, the buzz around IoT faded because there didn’t yet exist capable enough ways to digest and analyze the data, nor scalable ways to action the insights gleaned from it. The era of AI we’re in today changes all of that and will (finally) unlock the promises of IoT.
Last week, I welcomed to the UNSCRIPTED podcast Amir Pasdar, Senior Manager for Intelligent Connected Solutions at Henny Penny and Intelligent Equipment Connected Solutions Leader at the North American Association of Food Equipment Manufacturers (NAFEM), to discuss this evolution and the future of connected solutions.
Like myself, Amir remarked that the journey from simple connectivity to advanced AI-driven solutions has been a long one. He recalled his early days in the industry, working on smart meters and predictive sensors for smart grids. Over the years, he’s witnessed the focus shift from basic automation and connectivity to condition monitoring and big data analysis. We both find it exciting that, today, we stand on the brink of a new era characterized by AI and agentic AI, where the analysis of vast amounts of data enables valuable real-time insights, powerful opportunities to improve efficiency, and unprecedented insights that allow businesses to anticipate and prevent issues, offering a proactive approach that was previously unattainable.
Think Beyond Efficient Service Delivery
Looking ahead, Amir envisions a future that is increasingly intelligent and self-healing, capable of diagnosing and fixing issues autonomously. “The role of agentic AI will expand, with different AI agents handling various aspects of customer service and maintenance, working together to provide seamless and efficient service,” he shares. “This evolution will not replace human roles but will augment them, allowing for more complex problem-solving and innovation.”
However, I see many businesses hyper-focused at the moment on how AI can bring an entirely new type of efficiency to operations – and not much else. This was reinforced in my recent conversation with Amer Iqbal, a sought-after speaker who has spent the last 20 years leading innovation at some of the world’s top companies including as the Head of Digital Transformation, APAC at Meta and Director of Digital Strategy & Innovation at Deloitte Digital. He explained that consulting clients are coming to him in droves to “do something with AI,” but aren’t looking beyond its impact on efficiency, which he views as only the low-hanging fruit of what’s possible.
Businesses who begin early looking beyond the ever-appealing efficiency gains will come out on top when it comes to competitive differentiation. In service-centric businesses, it’s crucial to consider now how the layering of new AI capabilities into your connected device landscape can open doors to new business models. Shifts we’ve seen underway – Servitization, outcomes-based service, As-a-Service models – become increasingly attainable and feasible in this new era of predictive capabilities and automation.
Amir reinforces how this evolution of intelligent connected solutions lends itself to companies moving from selling products to selling services (and experiences). “For instance, instead of selling an air conditioning unit, a business could offer a subscription service that guarantees a certain level of comfort, with AI-driven maintenance and updates included,” he says. “This shift could provide a more sustainable and customer-focused approach, ensuring that businesses remain competitive in a rapidly changing market.”
Service Leaders Should Be Aware of Challenges and Considerations
While technological capabilities are advancing rapidly, we know that technology is an enabler but one piece of a far bigger puzzle. Amir emphasizes the importance of organizational and cultural readiness, saying, “Companies need to ensure they have the necessary technical infrastructure, including standardized data pipelines and in-house AI teams, to support these innovations. Equally important is preparing the workforce and customers for these changes, addressing any resistance, and ensuring a smooth transition.”
Beyond readiness and change management, companies must also be pragmatic about AI is leveraged. Amir suggests that a certain degree of caution is warranted as risks such as fabricating data or making biased decisions remain valid. “Companies must rigorously test and validate their AI models to ensure accuracy and compliance with regulations,” he notes. “Transparency with customers and internal teams is also vital to maintain trust and understanding.”
How is your organization viewing the potential of AI? Are you focused solely on efficiency, or broadening your view to how it sets the stage for service innovation? I’d love to hear from you.