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The rapid advances in the Internet of Things (IoT) have promoted a revolution in communication technology and offered various customer services. Artificial intelligence (AI) techniques have been exploited to facilitate IoT operations and maximize their potential in modern application scenarios. In particular, the convergence of IoT and AI has led to a new networking paradigm called Intelligent IoT (IIoT), which has the potential to significantly transform businesses and industrial domains. This paper presents a comprehensive survey of IIoT by investigating its significant applications in mobile networks, as well as its associated security and privacy issues. Specifically, we explore and discuss the roles of IIoT in a wide range of key application domains, from smart healthcare and smart cities to smart transportation and smart industries. Through such extensive discussions, we investigate important security issues in IIoT networks, where network attacks, confidentiality, integrity, and intrusion are analyzed, along with a discussion of potential countermeasures. Privacy issues in IIoT networks were also surveyed and discussed, including data, location, and model privacy leakage. Finally, we outline several key challenges and highlight potential research directions in this important area.