How Edge AI is Transforming the Design of Connected Devices

Parks Associates released a new white paper, AI Acceleration at the Edge: Optimizing Product Design, developed in partnership with Silicon Labs. The new research explores how device manufacturers are creating new value for connected devices by embedding artificial intelligence (AI) capabilities directly in the device.

As the smart home market matures, manufacturers face growing pressure to deliver smarter, more capable products at accessible price points. According to Parks Associates, cost and perceived lack of value remain the top barriers to adoption—44% of U.S. internet households that do not own or plan to purchase smart home products say they are too expensive, while 42% do not see the benefit or value to them.

"Device manufacturers must deliver smarter, more capable devices while keeping products affordable," said Jennifer Kent, VP, Research, Parks Associates. "Edge-based AI is a key enabler in reaching that two-pronged goal, supporting advanced behaviors such as presence awareness and audio/voice detection without incurring additional cloud fees."

Manufacturers are faced with critical decisions about how and where to implement intelligence as AI expands across consumer markets. Powered by innovations in AI-focused silicon and on-chip accelerators, it allows edge devices to handle complex tasks—anomaly detection, sensor fusion, and environmental awareness—without draining battery life. Hardware accelerators make on-device AI possible, offering low-power, low-cost implementations that broaden adoption.

Key Research Findings

• 48% of US internet households own at least one smart home device, reflecting mass-market adoption of connected products.
• 51% report using generative AI tools in 2025, demonstrating rising familiarity with AI technology.
• 52% indicate willingness to pay monthly for an intelligent home assistant, representing a potential $12 billion annual service opportunity.
• 49% of IoT company leaders report favoring edge compute benefits, though many employ hybrid models that integrate both edge and cloud.

"The future of IoT is Connected Intelligence—where wireless connectivity and AI converge so devices don't just connect, they decide and act," said Daniel Cooley, CTO, Silicon Labs. "With on-device acceleration and silicon matched to each workload, brands can launch new services while reducing cloud dependence and improving privacy."

Source: Parks Associates

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