The integration of Artificial Intelligence (AI) has revolutionized the process of image capture and analysis, significantly enhancing analytical capabilities. By employing AI-based video processing algorithms, the system can analyze images from cameras along assembly lines, extracting detailed information such as defect detection, product quality assessment, and predictive maintenance. This information is then integrated into existing IoT systems, enriching data repositories with valuable insights into into production efficiency, quality patterns, and avenues for optimization. By combining between AI and IoT not only fosters smarter decision-making and enhanced productivity but also ensures operational continuity. In this paper, the authors propose the design of a highly flexible system that can be easily adapted to suit various industrial applications such as defect detection in assembly line environments, as well as security and surveillance, with robust capabilities to monitor individuals and vehicle movements in designated areas with minimal adjustments.