Artificial intelligence plays a crucial role in advancing Internet of Things systems by adding learning and decision-making capabilities rather than simple data collection. IoT environments include many connected sensors and devices that continuously generate large volumes of data, and AI algorithms analyze this data to extract useful patterns and insights. This enables fault prediction, performance optimization, and more efficient resource management. AI is widely used in smart homes and smart cities to automatically monitor and control consumption and operations. In industry, it supports predictive maintenance and reduces unexpected downtime. AI also strengthens IoT security by detecting abnormal device behavior. Integrating AI with IoT transforms connected systems into adaptive and intelligent ecosystems capable of real-time decisions.