The companies said in a joint statement they will "combine their analytic platforms, cloud, and security technologies with privacy in mind to gain more insights on data collected from machines in a variety of industries."
The new project will focus initially on helping city governments and midsize utilities analyze vast quantities of data, including from mass transit vehicles, utility meters, and video cameras.
"As a result, cities may be able to better evaluate patterns and trends to improve urban planning and utilities can better manage their equipment to reduce costs," the statement said.
"This collaboration of two world-class companies will help deliver a more connected planet," said AT&T vice president Chris Hill.
"We share a vision that the 'Internet of Things' will help companies in a variety of industries rely on their remote assets and connected devices to take their business to the next level."
The services may help in traffic management, parking and emergency services, the companies said.
"Smarter cities, cars, homes, machines and consumer devices will drive the growth of the Internet of Things along with the infrastructure that goes with them, unleashing a wave of new possibilities for data gathering, predictive analytics, and automation," said IBM's Rick Qualman.
"The new collaboration with AT&T will offer insights from crowdsourcing, mobile applications, sensors and analytics on the cloud, enabling all organizations to better listen, respond and predict."For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.