Oh how times have changed. Once upon a time, the "smartest" thing in your home used to be your computer or calculator. Not anymore.

The Internet of Things (IoT) means that every device, appliance or service is getting smarter, ranging from fitness trackers to thermostats. Connectivity however, extends beyond consumer products, slowly appearing in vehicles and even in the workplace.

This transition has been quick. Ten years ago, there were approximately 500 million devices connected to the Internet, but by 2020 that number is expected to increase to 50 billion. Not only does this mean that producers see the advantages of internet-connected products, but consumers and companies are willing to adopt them.

So why is everyone adopting connected products? Because they make our lives safer and easier.

However, while the benefits of IoT are many, there are just as many risks, the most significant being responsibility when an accident occurs. American International Group, Inc. (AIG), a leading global insurer with more than 88 million customers, is taking the time to understand the risks and find solutions with their clients so that IoT can effectively make our world safer and more efficient. In fact, over the past year, AIG has released a multitude of new innovative insurance solutions/partnerships which are cutting edge in the industry.

For example, autonomous vehicles have the potential to make the roads safer. According to the Department of Transportation, 94 percent of all traffic accidents are the product of human error, and some analysts predict this number will drop by 90 percent once autonomous vehicles are widely adopted.

This prediction makes perfect sense. In the case of trucks they require a driver to interact with countless knobs, switches and buttons while communicating with one another via CB radio. A truck needs to be started with a key, and the GPS needs to be programmed by hand. Plus there are other risks involved when driving for long hours, like sleep deprivation which sets the stage for a potential traffic accident.

Connected trucks, however, will be able to move on their own, seamlessly communicate with freight companies' central networks or with other trucks, plus interact with sensors embedded in traffic signs and the roads. Furthermore, connectivity efficiencies would have an impact on energy expenditure. Since the self-driving trucks would travel at a constant speed and on the most-efficient routes, the amount of fuel they would expend would be optimized.

But, who is to blame when the truck senses it's going to crash into another vehicle, swerves out of the way and hits a pedestrian? How do we protect employers, workers and the general public from IoT mishaps? AIG has worked with their clients, analysts and been at the forefront of innovative insurance solutions for the IoT revolution and have shared their insights and recommendations at aig.com/insights.

Another example where IoT is poised to make an impact is the workplace, factories in particular. According to the International Labor Organization, 2.3 million people die from work-related accidents and diseases, and just like with vehicles, experts believe this number will drop drastically once connected machinery and sensors come into play.

Through the use of robots, people no longer have to expose themselves to dangerous elements, such as hazardous materials. However, if there is a task that only a human can do, the usage of air sensors, infrared cameras and sensor-equipped safety vests can be used to significantly improve workplace safety.

Of course, connected robots have been used in home settings as well. For example, Japan has been investing heavily in service robotics and eldercare robotics in order to counter the country's aging population and low birth rates.

Again, while the benefits of robots are many, replacing humans with robots does not guarantee error-free operation. If a robot is used in a workplace to feed back data into a system, who is responsible if that leads to the production of defective goods? AIG has been thinking about that too, and has channelled their innovative technology learnings into a suite of products and solutions designed to mitigate real-world risk.

In order to reduce workplace risk AIG has invested in a cutting edge wearable tech/artificial intelligence technology created by new startup Human Condition Safety. AIG will be able to gather workplace behavior data related to safety and production issues and use it to help employers keep their workplaces safe, reduce and keep operations moving smoothly.

Technology innovation has progressed at faster pace than has any industry in modern times. IoT will continue to evolve and grow. It's no longer seen as a consumer technology novelty and has real world impact in manufacturing, production and human resources.

AIG has been in the forefront of this innovation revolution, sharing their research with clients on drones, cybersecurity and robotics among other topics, and working to create a suite of products and solutions uniquely suited to help them stay ahead of the curve. Wondering how IoT might affect your workplace? You can read their insights at aig.com/insights

This article is the product of a partnership between Tech Times and member companies of American International Group, Inc. (AIG). Although this post is sponsored, the information and opinions expressed in the article constitute only author's own beliefs. This article does not suggest a partnership or affiliation between AIG and any other company referenced.