Advances in artificial intelligence (AI) software and hardware are giving rise to a multitude of smart devices that can recognize and react to sights, sounds, and other patterns--and do not require a persistent connection to the cloud. These smart devices, from robots to cameras to medical devices, could well unlock greater efficiency and effectiveness at organizations that adopt them. In some industries, smart machines may well help expand existing markets, threaten incumbents, and shift the way revenue and profits are apportioned among industry players. Rapid strides in technology and the growing investment in AI innovation signal how fast AI deployment is moving. Advances in software and hardware are propelling AI outside of the data center into devices and machines we use in our work and our everyday lives.

Some major industries could soon be shaken up by a new development in artificial intelligence-- the technology's increasing portability. Chip manufacturers are making processors specifically for machine learning and related AI features, noted Deloitte analysts David Schatsky, Jonathan Camhi, and Aniket Dongre in a new report. In many cases, those chips are being designed to consume minimal power, making it possible for them to be used in small, portable devices. Meanwhile, AI software developers are designing new algorithms that can be run directly on such chips without ever needing to connect to computers in the cloud. The result is that we are about to enter an era that the analysts dubbed "pervasive intelligence," filled with devices and sensors that have AI technologies embedded within them.