The internet of things (IoT) plays a pivotal role in transforming the industrial sector. Connecting machines to record their usage patterns is often the first step, and it can deliver tangible benefits. But companies that really put data — and insights — to work are predicting problems and opportunities before they occur or developing entirely new service-based business models. This report discusses the role that machine learning (ML) plays to support these bigger IoT opportunities and highlights issues that infrastructure and operations (I&O) leaders should consider as they guide organizations to realize their digital potential.