Sponsored: The Internet of Things is Changing Everything

Photo (cc) by IntelFreePress

Two years ago, we told you the Internet of Things could be the next tech trend to make you rich. But if you missed that article and still don’t understand what the Internet of Things is all about, it’s time you learned.

Consider this: By some calculations, the massive amount of data we now collect is equivalent to creating 150 million new books every second. Ninety percent of the world’s current data was created in the past two years.

It’s mind-boggling. And where is this boatload of data coming from? A lot of it is coming from the Internet of Things.

Fridges, thermostats and dog collars go online

When the Internet began, it was about connecting people to each other so they could share information. The Internet of Things is about connecting inanimate objects to the Web so they can share critical information.

One day, nearly everything will be connected to the Internet. The process is already well underway.

Here are some previously “dumb” devices now made “smart” by the Internet of Things:

  • Refrigerators that tell you when the milk is gone
  • Garage door sensors that alert you when the door is opened or closed
  • Thermostats you can adjust with your smartphone
  • Dog collars that tell you if Fido is exercising enough

From our cars to our checkbooks, more and more of the things around us are plugged in and online.

But we’re still in the infancy of the revolution. Estimates today suggest 10 billion to 20 billion devices are now connected to the Internet. In five years, that number could swell to 50 billion, according to a new report by AIG and the Consumer Technology Association:

Autonomous objects can constantly acquire, analyze, and transmit reams of data captured from their surroundings. In turn, economies, cities, businesses, and people will respond to this flow of information — opening an unprecedented array of opportunities.

All this information is about making us more productive and our lives easier. But it also means we’re creating enormous amounts of data. The critical questions are:

  • What is happening to this data?
  • What are the risks associated with collecting the troves of information?

Corporate America, how are you going to handle my information?

The Internet of Things offers tremendous opportunity to businesses. All that data is a potential goldmine of information that can be used to improve products and services, market goods and reduce costs.

No one knows that better than the insurance industry. The industry’s entire business model is based upon pulling data, analyzing it and making the best guess on what happens next:

  • Will you crash your car?
  • Will your house go up in flames?
  • Will you develop some chronic health condition?

Because of the insurance industry’s long history of dealing with data, I tend to be fairly comfortable with the notion insurers aren’t going to misuse my information.

When my auto insurance company wanted to send me a gadget to plug into my car to monitor my driving habits and potentially give me a discount, I had no problem saying yes. I trusted the company wasn’t going to announce to the world I sometimes brake too hard, or send a notice to my health insurer to let it know my premiums should be raised based on the average speed of my car.

However, I’m not so sure about companies in other industries — the ones that are new to the big data game. When their latest and greatest Internet of Things gadget hits the market, are they going to know what to do with the data they collect? Will they keep it private and secure?

Here’s a place to start

AIG’s report — a 27-page white paper — is an effort to encapsulate the IoT revolution. It covers the history of the Internet of Things, how new technology is being used in each industry, and the potential problems of privacy, cybersecurity and liability.

It’s the perfect place to learn more about how this tech revolution could affect you in the future. And if you work for a business interested in hopping on the Internet of Things bandwagon, it’s a must-read.

If 27 pages is too much for you, you can get a 30-second overview by looking at this infographic.

Happy reading, and let us know what you think in the comments below or on our Facebook page.

This article is the product of a partnership between Money Talks News and member companies of American International Group Inc. Although this post is sponsored, the information and opinions expressed in the article constitute only my own beliefs.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

Read Next
7 Surprising Ways Retirees Waste Their Savings
7 Surprising Ways Retirees Waste Their Savings

You can make your retirement money last a lot longer by avoiding these costly mistakes

The 14 Most Deadly Car Models
The 14 Most Deadly Car Models

These vehicles are involved in fatal accidents at least twice as often as the average car.

14 Products That Keep Foods Fresh Longer
14 Products That Keep Foods Fresh Longer

We’ve rounded up innovative Amazon purchases to lengthen the life of your favorite foods and beverages.

The Worst Nursing Homes in America Are Revealed
The Worst Nursing Homes in America Are Revealed

The nursing homes with a history of providing subpar care previously hadn’t been identified for a government list.

7 Reasons You Should Not Claim Social Security Early
7 Reasons You Should Not Claim Social Security Early

The sooner you claim your Social Security retirement benefits, the more you — and perhaps also your spouse — stand to lose. Here are the stakes.

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Most Popular
If You Find This Thrift Shopping, Buy It
If You Find This Thrift Shopping, Buy It

Whether you resell it for a big profit or add it to your own wardrobe, this type of clothing is a hidden steal.

This Simple Mistake Might Weaken Your COVID-19 Vaccination
This Simple Mistake Might Weaken Your COVID-19 Vaccination

Avoid doing this before you get vaccinated.

10 Things Frugal People Never Buy
10 Things Frugal People Never Buy

If you’re a true tightwad, the mere thought of spending money on these items gives you the willies.

7 Social Security Benefits You May Be Overlooking
7 Social Security Benefits You May Be Overlooking

There’s more to Social Security than retirement benefits.

10 Cars You Are Most Likely to Keep for 15 Years
10 Cars You Are Most Likely to Keep for 15 Years

The cars that owners hold onto the longest have one thing in common, a new study shows.

3 Ways to Get Microsoft Office for Free
3 Ways to Get Microsoft Office for Free

With a little ingenuity, you can cut Office costs to zero.

The 6 Best Investing Apps for Beginners
The 6 Best Investing Apps for Beginners

If you’re looking to ease into investing in the coronavirus economy with just a little money, check out these easy-to-use tools.

7 Kirkland Signature Items to Avoid at Costco
7 Kirkland Signature Items to Avoid at Costco

Even if it seems you save a bundle buying Costco’s Kirkland Signature brand products, they may not be the bargain they appear to be.

10 Deep Discounts Available on Amazon This Friday
10 Deep Discounts Available on Amazon This Friday

These items are all steeply discounted — but the deals won’t last long.

14 Things You Should Stop Buying in 2021
14 Things You Should Stop Buying in 2021

These convenient household products come with hidden costs that you might not have considered.

9 Things You Should Never Leave in a Car
9 Things You Should Never Leave in a Car

Thinking of leaving these possessions in a car? Prepare for unexpected consequences.

13 Amazon Purchases We Are Loving Right Now
13 Amazon Purchases We Are Loving Right Now

These practical products make everyday life a little easier.

9 Mistakes People Make When Cleaning With Vinegar
9 Mistakes People Make When Cleaning With Vinegar

Cleaning with vinegar can save you a lot of money, but using it like this can cost you.

8 Things You Should Replace to Improve Your Life Today
8 Things You Should Replace to Improve Your Life Today

Being frugal isn’t smart if you put off replacing these items.

7 Income Tax Breaks That Retirees Often Overlook
7 Income Tax Breaks That Retirees Often Overlook

Did you realize all these tax credits and deductions exist — or that they apply to retirees?

10 Things Successful Retirees Do Differently
10 Things Successful Retirees Do Differently

These habits and characteristics can help put you on the track to success.

7 Costly Health Problems That Strike After Age 50
7 Costly Health Problems That Strike After Age 50

As we age, our bodies wear down. Here is how to cut costs associated with some common ailments.

29 Purchases That Can Save You Money Every Day
29 Purchases That Can Save You Money Every Day

Sometimes, you’ve got to spend to save.

5 Changes to Your Federal Tax Return Form in 2021
5 Changes to Your Federal Tax Return Form in 2021

The new Form 1040 features two new tax breaks, among other changes.

View More Articles

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Add a Comment

Our Policy: We welcome relevant and respectful comments in order to foster healthy and informative discussions. All other comments may be removed. Comments with links are automatically held for moderation.