The benefits of using a microcontroller in embedded systems include low power consumption, compact size, and versatility. Microcontrollers can execute a variety of tasks, making them suitable for applications like wearable technology, home automation, and industrial controls. They integrate processing, memory, and input/output functions on a single chip, reducing the need for additional components, which streamlines designs. Moreover, microcontrollers are typically cost-effective and easy to program, allowing developers to implement functionality rapidly. This capability makes them ideal for both prototyping and production applications in embedded systems.