/ WHY THE RAPID DEVELOPMENT OF EDGE AI
WILL REDEFINE THE EMBEDDED INDUSTRY
By Alex Iuorio Senior Vice President, Global Supplier Development, Avnet
/ WHY THE RAPID DEVELOPMENT OF EDGE AI WILL REDEFINE THE EMBEDDED INDUSTRY
By Alex Iuorio Senior Vice President, Global Supplier Development, Avnet
Artificial intelligence (AI) is redefining the core of modern infrastructure, turning data centers into model trainers. Well over 1,000 AI models are accessible now to enterprise customers. Accessing these models online is already financially lucrative for the companies behind them.
In parallel we see AI flowing out of the core and toward the edge of networks. AI at the edge is enabled by breakthroughs happening at the core but comes with all the challenges related to embedded systems. Overcoming those challenges is changing the embedded electronics market.
AI is also changing the way engineers design products. This could include using AI to suggest new or alternate parts or automating some critical tasks like maintaining a design specification or creating a test harness.

History proves that when availability climbs and costs plummet, technological adoption explodes. Our supplier partners are already racing toward this horizon, confirming our prediction that AI-powered edge devices will reshape the landscape.
— Alex Iuorio, SVP, Global Supplier Development
ENGINEERS CONFIDENT AI WILL POSITIVELY INFLUENCE MANY ASPECTS OF PRODUCT DESIGN
Survey question: Of the following, how likely is it that AI will influence product design in the next 3-5 years?
Avnet recently surveyed over 1,200 engineers to understand how they use AI today. Over 75% believe AI will reduce product development cycles.
(Source: Avnet Insights: Embracing AI)
Rotate mobile screen (landscape) to see full chart.
Edge AI will be at the center of the fifth industrial revolution, where the focus shifts from machinery toward people, productivity and sustainability. Embedded electronics is the foundation for this shift.
I accept that it may be impossible to predict the magnitude of edge AI and how it will impact productivity in industrial, automotive, medical and the other markets served by Avnet. What we can say with certainty is that the impact is already being felt across all markets, and the rate of change will be much steeper than we’ve seen.
AI TOOLS WILL IMPACT THE ENTIRE PRODUCT DESIGN PROCESS
Survey question: Which one of the following emerging AI trends do you believe will have the BIGGEST impact on the design of products?
Using AI to generate embedded software will contribute to the productivity increase we expect to see from adopting AI into the design process.
(Source: Avnet Insights: Embracing AI)
Rotate mobile screen (landscape) to see full chart.
There are several drivers behind edge AI. Research into neural networks is fundamentally driving the entire AI industry, but creating models of those networks that are small enough to run on constrained hardware at the edge is critical. The flip side is the development of new hardware optimized to run AI models at the edge. Both are happening at speed.
These conflating torrents are creating turbulence in the technology market. Hundreds of startups are vying for their place in the edge AI supply chain. Many are targeting data-heavy applications, which include generative AI and vision systems. These applications scale relatively easily using
the same underlying technology, which makes the addressable market more accessible. Fewer are attracted by data-lite applications such as sensor fusion. This is where traditional embedded systems sit, and as any engineer will confirm, these applications have less in common. This makes it more challenging for startups to develop a value proposition, but it is an area where the incumbents are supremely qualified to service.
GREATEST UPTAKE OF AI WILL BE IN PROCESS AUTOMATION
Survey question: What are the 3 embedded AI-enabled functions you see having the highest adoption rates in the future?
Predictive maintenance, one of the three top functions engineers expect high AI adoption, is a data-light application.
(Source: Avnet Insights: Embracing AI)
Rotate mobile screen (landscape) to see full chart.
At Avnet, we partner with established integrated device manufacturers; all have their edge AI solutions. Our engineers are talking to OEMs about edge AI applications that are both data-heavy and data-light, and Avnet has the supplier partnerships, competence and resources to deliver both.
The business proposition for edge AI differs from the cloud. The challenges, although unique to AI, are familiar to Avnet. The main drivers for moving AI to the edge are power, performance and security. Power and performance have been constant considerations in embedded system design for decades, while security only became a priority with the wider deployment of internet connectivity.
The technology to support connectivity in embedded systems, what we generally call the Internet of Things (IoT), has exhibited slow but consistent growth. It is no exaggeration to suggest that edge AI creates the demand missing from IoT. While running AI at the edge reduces the need to move data to and from the core, that need doesn’t disappear completely. Avnet’s software-as-a-service (SaaS), /IOTCONNECT, was conceived to meet the needs of current and future IoT applications. Edge AI exemplifies those needs and /IOTCONNECT is perfectly positioned to meet them.
The turbulence in the edge AI market will continue for some time, then eventually subside. For over 100 years Avnet has provided the electronics industry with the stability it needs. That extends to seismic once-in-a-career changes, such as AI.
AI at the edge is changing how we achieve the familiar and creating opportunities to explore the unfamiliar. Innovators will use edge AI to deliver value in ways that haven’t been feasible before. By focusing on power, performance and security, AI at the edge will redefine the embedded industry.
We at Avnet are on hand to provide the stability and support needed to navigate this tumultuous period and ensure our customers emerge in a position of strength.
ABOUT THE AUTHOR

Alex Iuorio
Senior Vice President, Global Supplier Development, Avnet
Alex Iuorio is a 40-plus-year veteran of the high technology distribution industry. He has held various positions within Avnet and prior to that with Hall-Mark Electronics, acquired by Avnet in 1993.
He’s been headquartered in four different U.S. markets with experiences ranging from inside sales to area vice president. Prior to corporate, Iuorio’s last field role was as vice president area director for the West which included Avnet’s Silicon Valley operations during its unprecedented growth period. An experience and a time like no other in our industry’s history.
Beyond Avnet, Iuorio served as vice president of strategic business development for software solutions provider Azerity, a leader in creating innovative solutions for the channel business problems that face component manufacturers in our global marketplace.
Today, as senior vice president, Global Supplier Development, Iuorio leads the supplier and business development organizations within Avnet, coordinating all domestic and global initiatives with respect to those responsibilities.
Iuorio holds a BA from University of Illinois, with fields of concentration in mathematics, economics and political science.