Edge AI in IoT combines artificial intelligence with edge computing to process data locally on connected devices. This approach reduces latency, enhances privacy, and enables real-time decision-making in applications like smart homes, industrial automation, and autonomous vehicles. Key concepts include IoT architecture, edge computing benefits, and challenges like limited resources. Hardware platforms range from microcontrollers to single-board computers, while software frameworks like TensorFlow Lite enable deployment of AI models on constrained devices.