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Onboard intelligence is a term used to refer to artificial intelligence that's built into a device design, rather than outsourced to remote technology.
The broad spectrum of advantages and disadvantages of onboard intelligence is a good example of the challenges and issues that designers and engineers face in the artificial intelligence space. Obviously, onboard intelligence has efficiencies in that the device doesn't need to seek outsourced intelligence from elsewhere.
However, the power and processing needs of AI engines often make on-board intelligence impractical.
Also, there's a move toward edge systems that abstract the intelligence and the connectivity away from a physical device. By locating artificial intelligence in a network, edge systems can protect it from perimeter attacks and build all sorts of network security into the system.
Those are some reasons why onboard intelligence is not an extremely popular method for IoT design or other AI operations.