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The Transformative Impact of Artificial Intelligence in the Automotive Industry

February 28, 2024

“International competitiveness will be influenced by a new factor in the near future – namely the new technical and service offerings that can be provided with the help of data science and machine learning”. -Hofmann, M., Neukart, F., & Bäck, T. (2017)

Artificial Intelligence (AI) has conquered multiple sectors, causing an unprecedented transformation. In automotive, AI is involved in all aspects of the value chain, from manufacturing and sales to logistics, marketing and after-sales service. Currently, the market value of AI in the automotive industry is estimated to be approximately $2.3 trillion.

In this article, we will address the importance and application of AI in some key areas of the automotive sector, focusing on its challenges, benefits and future projection.

Customer connection

This concept has gained relevance since the rise of AI in this sector, describing a future in which users and vehicles will be fully integrated through technology, seeking to generate personalized experiences and interfaces for users. With IoT technology and the use of intelligent algorithms, a vehicle can respond to specific commands and adapt its systems, such as detecting black ice on roads and adjusting handling systems for safer driving.

Assisted driving

Assisted driving has been the subject of significant discussions around the implementation of AI in driving, considering the safety and ethical aspects that this implementation entails. Although fully autonomous driving remains largely an aspiration, mainly due to the regulatory challenges it must overcome, we have witnessed partial progress in this area. In November 2023, Toyota Research Institute presented two of its developments (HID- Human Interactive Driving and Driving Sensei), based on AI, which focus on supporting human driving, seeking to improve its driving method.

AI in sales

Vehicle purchasing and distribution processes are determined by a large amount of data, such as specifications, discounts, delivery times, among others. Currently, data mining methods, with AI capabilities, allow processing this data to generate forecasts, identify relevant characteristics for suppliers and predict delivery reliability.

The Future of Automotive AI

It is difficult to foresee which developments will lead the future of AI in automotive. However, it is to be expected that these developments are geared towards sustainability, increased safety and improved connectivity. What is a reality today is cross industry change, from manufacturing to human driving intervention.

Additionally, tools such as Perifai allow the detection and appraisal of cars automatically, implementing AI and computer vision tools that allow damage to be detected quickly and accurately.

Hofmann, M., Neukart, F., & Bäck, T. (2017). Artificial intelligence and data science in the automotive industry. arXiv preprint arXiv:1709.01989.

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