Generative AI and IoT: The Rising New Interlinkage Generative AI and IoT are two emerging frontiers of technology that, when combined can create intelligent, adaptive, and scalable systems. In this work, we propose a hybrid Generative AIoT framework to overcome existing challenges in the field, including data insufficiency, model scalability, and real-time item responsiveness. By serving as a foundation for refining predictive maintenance, anomaly detection and synthetic text-to-data generation, the framework utilizes state-of-the-art generative models, such as GANs, VAEs, and LLMs. Experimental results show an increase in prediction accuracy (+14.3%), reduction in latency (-29.2%), and energy efficiency (+25%) highlighting the possibilities of using Generative AI in the application of IoT. Although the proposed framework demonstrates significant performance improvements, authors address the concerns with computation overhead and data privacy that need to be considered in future research. It focused on bringing together theoretical and practical insight to the integration of Generative AIoT, which further helps advance state-of-the-art technologies in IoT systems.