Low cost sensors having high sensitivity, better resolution and linear characteristics are required for industrial applications based on instrumentation and control. Unfortunately, the natural non linear characteristic of sensor itself and also the dynamic nature of the environment, aging effect, inherent sensor’s noise and data loss due to transients or intermittent faults affects the sensor characteristics non linearly. As the transfer characteristic of most sensors is nonlinear in nature, obtaining data from such a nonlinear sensor, by using an optimized device, has always been a design challenge. Linearization of nonlinear sensor characteristic in digital environment, is a vital step in the instrument signal conditioning process. This paper gives a brief review about how to overcome this nonlinear characteristic of the sensor using artificial intelligence such as  Hybrid Neuro Fuzzy Logic (HNFL) based on digital linearization technique using VLSI technology such as Field Programmable Gate Array (FPGA).