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  • https://doi.org/10.1049/icp.2025.2536Copy DOI Icon

AI-driven smart home energy optimization: integrating AI agents with IoT for adaptive decision-making

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Abstract

As the Internet of Things (IoT) revolutionizes intelligent environments, energy efficiency remains a critical challenge. Traditional IoT-based energy management systems rely on predefined rule-based automation, which lacks adaptability to dynamic environmental conditions. This study proposes an Agentic AIoT system that integrates AI Agents, Large Language Models (LLMs), and Digital Twin technology to enhance IoT decision-making and optimize energy consumption in smart homes. Unlike conventional IoT frameworks, our system dynamically analyzes contextual factors—including real-time environmental conditions, user behaviors, and external data sources (e.g., weather forecasts and occupancy schedules)—to generate optimal energy-saving decisions autonomously. The proposed system consists of three key components: (1) Information Modules, which aggregate multi-source data beyond traditional IoT sensor inputs and construct a Digital Twin model for real-time environment simulation; (2) AI Agents & LLMs, which process contextual data and generate adaptive energy-saving strategies through intelligent reasoning; and (3) Automated Decision Execution, which seamlessly integrates optimized actions into IoT operations. By incorporating Digital Twin technology, the system can simulate various energy consumption scenarios, predict future power demands, and refine decision-making through AI-driven iterative learning. Experimental results demonstrate that our AIoT system achieves a 47.77% reduction in energy consumption compared to non-IoT environments while enhancing automation, adaptability, and user-centric control. Unlike conventional rule-based IoT solutions, integrating Digital Twin with LLM-powered AI Agents enables real-time context-aware decision-making and predictive energy optimization. This study contributes to intelligent IoT applications, Digital Twin-driven energy management, and AI-enhanced automation. Future research will focus on refining AI-driven autonomous decision-making, improving Digital Twin’s predictive accuracy, and further quantifying the impact of LLM-powered AIoT systems on energy efficiency. Our findings highlight the trans-formative potential of LLM-integrated AIoT with Digital Twin technology in revolutionizing energy management for intelligent environments while ensuring seamless interoperability with existing IoT infrastructures.

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