Artificial Intelligence (AI) is playing an important role in IOT applications and deployments. Internet of things (‘Thing’ refers to a device which is connected to the internet and transfers the device information to other devices.) is still in early stage of growth, because of its limited capabilities of its processor, in other hands Artificial Intelligence growing with speed, on integrating AI and IOT, it increases the capabilities of IOT, this technology provide us very smart systems like smart city, smart home, smart grid, smart industry, smart vehicle, smart health, smart environmental monitoring, healthcare, smart systems. However, entering in IOT is not only enough and not only part of story, this is necessary for companies to realize the full potential of IOT; they need to combine the IOT with rapidly advanced Artificial Intelligence (AI) technology. The integration of these techniques gives the concept to develop new technologies. Artificial Intelligence employed to create such intelligent applications and network solutions and some real-world solutions to exploit the benefits of the Internet of Things.