Artificial Intelligence in Automotive Industry: What the Future Holds
Published on : Thursday 02-02-2023
By the end of this decade, autonomous vehicles are going to be preferred over manual and about 90% of the vehicles produced will have AI features.
Autonomous vehicles with AI-enabled technologies are already ruling the roost in 2022 and this is definitely a drive into the future. If you are more into how artificial intelligence is shaping the automotive industry, you have landed on the right page.
Artificial intelligence’s progressive impact on different departments in the automotive industry such as manufacturing, transportation, and service, is ground-breaking. The international market size of the automotive industry with AI is forecasted to reach a whopping $7.5 billion within the next 6 years.
The automotive artificial intelligence market will grow at a rate of 21.5% CAGR by 2028 and this will be a revolution in the industry.
Impact of AI on the automotive industry
Though artificial intelligence contributes to the enhancement of several industries across sectors, the automotive industry benefits more than any other. Advanced technologies that are developed using the data collected from the past two decades are helping in building new machine-learning applications. As a result, automotive companies embrace AI applications and technologies while manufacturing new cars.
Some of the useful and important AI features considered while manufacturing cars today include gesture recognition, voice recognition and control, V2X, and Human Machine interaction (HMI). The list does not stop here as organisations are trying to enable AI features wherever possible. This is because of the positive feedback from customers who are enjoying improved user experience with their vehicles.
Self-driving cars, manufactured using AI/ML technologies and AI chips, have become a necessity when talking about the impact of AI in the automotive industry. Customers using the existing AI features in cars are more thrilled about the upcoming autonomous cars which are safer, smarter, and more capable in all areas.
Factors contributing to the market growth
While there are a number of reasons for the market growth of automotive artificial intelligence, we have listed below a few factors which are crucial to the surge.
Designing and testing: Companies can reduce costs and save time by implementing artificial intelligence for designing and testing. Automotive engineers are using computer models with AI instead of using traditional methods for more productivity and better modeling.
Interest in personalised vehicles: Customers are more inclined towards great user experience than ever and this is where AI contributes the most to success. Customisation of AI features and tools is very much possible with the use of AI for manufacturing. The freedom for each customer to personalise their vehicle makes the purchase more interesting and attracts more people for market growth.
Also, organisations can predict the needs of their customers by collecting personalised data and producing better-performing vehicles based on various demands.
Better customer experience: This factor is more or less similar to the one mentioned above. The amazing features and AI-enabled applications installed into vehicles increase performance and this improves the overall experience of customers. For example, cars are coming up with risk assessment and driver monitoring for accident prevention and this is a great safety measure. Thus, by proving next-level safety features using AI, companies are enhancing customer experience and growing better.
Future of AI in cars
Considering the above-mentioned points it is evident that automotive manufacturers are going to continue improving their vehicles with the use of AI. The transportation sector is expected to go through a transformation period where AI will be implemented for designing, production, and supply chain.
Vehicle services are also going to be different as AI applications nowadays are able to predict problems that are going to affect the vehicle. Performance of the engine, battery, and more are regularly monitored using AI and this helps in knowing more about the vehicle.
Future of automotive companies using AI
Supporting the expected growth of the automotive industry with AI there are many strategic collaborations happening between top companies.
First, a recent collaboration happened between Qualcomm Technologies and the German automotive giant Mercedes-Benz. This partnership is for future Mercedes-Benz vehicles which are set to get advanced digital capabilities using Snapdragon’s solutions.
Also, Mercedes-Benz is actively making level 4/5 autonomous vehicles along with the help of Bosch.
Secondly, Harman International has united with the ARD Audiothek app for creating a vehicle platform that can help automakers design, operate, and maintain the app store.
Finally, Microsoft China partnered with Human Horizons a couple of years back for developing all-electric autonomous vehicles with AI assistants. The driving technology in these vehicles is expected to be at the cutting edge.
AI taking over the Automotive Industry
Clearly, AI-enabled vehicles and electric cars with AI applications are going to redefine the way we look at the automotive industry. Autopilot is already in action with smart parking, acceleration, steering, and breaking in Tesla vehicles. Other companies that are implementing AI features and using AI tools in manufacturing are having strong research numbers and plans supporting their actions. By the end of this decade, autonomous vehicles are going to be preferred over manual and about 90% of the vehicles produced will have AI features coming with them.
Article Courtesy: NASSCOM Community – an open knowledge sharing platform for the Indian technology industry: https://community.nasscom.in/communities/ai/artificial-intelligence-automotive-industry-what-future-holds
The article is credited to Inspirisys Solutions Limited.
