For several decades, vendors of smart home products and services have been promising the arrival of products that will automate our daily lives, perform routine chores, and keep us constantly informed of the health and status of our home systems and those using them. While we are still a long way from realizing those dreams, the fundamentals are now in place. The intersection of machine learning, also called artificial intelligence (referred to in this report as “AI”) and smart home products has transformed the smart home industry by enabling products that are simple to install and configure, that communicate with other products, and that perform jobs that make people’s lives easier. This report examines the path smart device makers are taking to incorporate AI into new products and how those elements of AI are providing unique value to users of smart home products. Finally, this report considers future implications of the integration of AI and smart home.