We present an overview of embedded network applications and discuss requirements arising from this analysis. Furthermore, we discuss selected in-network processing techniques and point out the analogy between neural and sensor networks. In the following neural networks are introduced in the sensor network context. We describe the motivation and the practical case for neural networks in the sensor networks context, and evaluate early results achieved with our test implementation. We argue that there is a high potential with these paradigms which promise a strong impact on the future research, especially if applied as a hybrid technology.