Aluminum iodide is widely used as a catalyst in organic synthesis, particularly in reactions involving halogenation and isomerization. It facilitates the addition of halogens to alkenes and is effective in promoting Friedel-Crafts type reactions. Due to its strong Lewis acidity, it activates various substrates in the formation of carbon-carbon bonds. It is also employed in the conversion of alcohols to alkyl iodides, making it valuable in the preparation of iodinated compounds for pharmaceuticals and agrochemicals. Additionally, aluminum iodide finds use in materials science for the synthesis of aluminum-containing thin films and semiconductors.