Advances in Artificial Intelligence of Things, highlighting Semantic Interoperability and Cyber-Security with AI-Powered Embedded Finance Example

The rapid advances in Artificial Intelligence (AI) technology and the race for developing the best AI-powered application is generating that data interoperability, data protection and data privacy became priorities that must be addressed in each AI-powered design. Cyber-security techniques from IoT and AI must converge to ensure data sharing and data exchange following best practices and ensure privacy preservation, and regulatory compliance. Data coming from smart sources (IoT devices) and used in AI applications, shall be provided with full cyber-security capabilities. Conceptually, AI-powered solutions include both high levels of interoperability, transparency, and capabilities to securely interpret and analyse data close to the source (edge-IoT) and thus through the use of semantic models, advanced data processing capabilities are possible. This paper uses best cybersecurity practices and explore the integration between AI-Technologies and the IoT systems, enabling more smart interactions and more sophisticated intelligent and complex services. This paper also introduces an implementation example with focus on AI-powered complex analytics and smart wallets, a novel example of how securing Know-Your-Customer (KYC) and Embedded Finance (EmFi) operations. Finally this paper underlines concerns about the role of semantics supporting levels of interoperability at large and transparency by means of AI explainability aspects in AIoT applications.