Internet has become the most significant technology with tremendous impact on everyday human life, where IOT is a major technology which uses internet applications to make everything around us ‘Smart’providing ease of accessibility of physical devices and reducing human effort. In this paper we analyze the role of Artificial Intelligence in field of Internet of Things or the IOT.. AI makes the network more ‘intelligent’increasing the scope of its connectivity and vast data streams. In this paper, we will analyze the critical impact of Artificial Intelligence deployed in IOT. We will also provide a quick overview on the current approaches of IOT and the challenges faced. Later we discuss how IOT and Artificial Intelligence (AI) together play a vital role in the coming years with the emergence of Internet of Intelligent Things (IoIT) that make these devices even smarter.