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The technology of Artificial Intelligence (AI) and the Internet of Things (IOT) have become an integral part of human life. Artificial Intelligence is the possession of counterfeit intelligence of humans by machines, it is only similar to machine intelligence. It is programmed and designed by developers and it can act or pretend and ruminate like a human being. The Internet of things insinuates connecting anything with the specified protocols through information sensing equipment for information exchange and communications in order to attain smart recognition, positioning, tracing, monitoring, and administration. The key skills that Artificial Intelligence (AI) is meant to have in order to operate at work are examined in this essay. It begins by focusing on how challenging it is for AI to navigate through complex and unpredictable environments. It looks at the fundamental abilities that underlie these allegedly complicated abilities, such as spatial memory, object representation, and causal reasoning. The social concerns in the workplace are examined, which addresses the need to predict or infer meaning from ambiguous behaviour and the common sense skills that enable them. Finally, my research overlooks the Artificial Intelligence challenges and the Internet of things in daily lives, and the steps in evaluating Artificial Intelligence using psychological tasks. Although human common sense and abilities are often more relevant in ambiguous and unpredictable situations, Artificial Intelligence is a great boon for tackling complex problems.