Rapid growth in the Internet of Things (IoT) has resulted in a massive growth of data generated by these devices and sensors put on the Internet. Physical-cyber-social (PCS) big data consist of this IoT data, complemented by relevant Web-based and social data of various modalities. Smart data is about exploiting this PCS big data to get deep insights and make it actionable, and making it possible to facilitate building intelligent systems and applications. This article discusses key AI research in semantic computing, cognitive computing, and perceptual computing. Their synergistic use is expected to power future progress in building intelligent systems and applications for rapidly expanding markets in multiple industries. Over the next two years, this column on IoT will explore many challenges and technologies on intelligent use and applications of IoT data.