This is a review paper on the recent development in IoT-based intelligence testing, therefore, describing the potential of creating a paradigm shift in traditionally made cognitive assessments. Internet of Things technology enables interactive and adaptive intelligence tests that deliver real-time data about cognitive abilities. Using the connected devices like wearables and smart applications, these assessments will be capable to measure all parameters, such as reaction times, problem-solving abilities, and decision-making processes, in a variety of environments. The research shares existing methodologies and examines their effectiveness to weigh the merits of using an IoT-based test over traditional modes, including better user engagement, improved data quality, and reachability. It highlights the ethical implications and data privacy issues associated with using IoT in psychological assessments. The paper finally gives a general viewpoint on current trends of IQ tests using IoT technology, outlines deficiencies and shortcomings, and offers future directions on how to better design safe and effective assessment methods in cognitive psychology.