1) When IoT meets AI, devices are becoming widely available and connected due to reduced costs and improved connectivity and cloud services, driving interest in IoT. 2) API economies and big data analytics are major drivers of profit, connecting sensor data with cloud logic. Intelligence can be located in sensors, gateways, the cloud, or a combination. 3) The presenter argues that the standard IoT reference model is suboptimal and that a technology is needed to blend event-based and query-based data processing in real-time. A rule engine and Bayesian inference could help address challenges in combining physical and API-sourced data.