Used in cloud seeding to induce rainfall by acting as an ice nucleating agent. When dispersed into clouds from aircraft or ground-based generators, silver iodide particles provide a surface for water droplets to freeze, promoting the formation of ice crystals that can grow and fall as precipitation. This application is widely employed in drought-prone regions and for enhancing snowpack in mountainous areas.

Also utilized in photography and certain types of photographic emulsions due to its sensitivity to light, although this use has declined with the rise of digital imaging.

In addition, silver iodide finds application in electrochemical sensors and solid-state batteries because of its high ionic conductivity in the solid phase, making it suitable for specialized conductive materials and membrane technologies.