Strategic Intelligence: Artificial Intelligence in Automotive
Description
Strategic Intelligence: Artificial Intelligence in Automotive
Summary
AI is transforming all parts of the automotive value chain. From predicting maintenance needs and streamlining supply chains to optimizing manufacturing processes and enhancing the in-car user experience, AI enables fundamental shifts in how vehicles are designed, built, and operated.
The report covers how AI overcomes key challenges in the automotive industry. These include automotive design, ESG regulations, customer engagement, cybersecurity, autonomous driving.
AI is transforming the automotive industry
Artificial intelligence (AI) refers to software-based systems that use data inputs to make decisions on their own. According to GlobalData forecasts, the total AI market, including software, hardware, and services, will be worth $641.8 billion in 2029, having grown at a compound annual growth rate (CAGR) of 37.4% from $131.3 billion in 2024.
AI is transforming all parts of the automotive value chain. From predicting maintenance needs and streamlining supply chains to optimizing manufacturing processes and enhancing the in-car user experience, AI enables fundamental shifts in how vehicles are designed, built, and operated.
Generative AI is accelerating automotive design
Automotive design has never been more complex. On top of traditional concerns like aesthetics and safety, designers must now integrate physical and digital systems for electric vehicles (EVs) and autonomous driving. Generative AI (GenAI) can produce thousands of design iterations—from individual components to complete vehicles—based on specified inputs and constraints, like weight and aerodynamics. Some tools even work from simple prompts, such as “sleek” and “SUV-like.” GenAI can also simulate real-world performance, enabling teams to shortlist and validate the best performers before moving on to physical prototyping. However, these tools are only as good as the inputs they receive. Automakers should avoid rushing ahead without first agreeing on core design criteria.
Unlocking customer engagement with AI
The consumer market for vehicles is incredibly saturated. Automakers and dealerships must find new ways of differentiating themselves to customers through greater personalization. Automakers such as Volkswagen and Tesla have incorporated GenAI models into infotainment systems, giving their vehicles new capabilities such as auto-adjusting climate control, conversational voice assistance, and smarter navigation. In after-sales, AI-based telematics and analytics can predict maintenance, auto-schedule appointments, and reserve parts. Automakers can greatly improve customer perceptions of quality and strengthen their reputation by reducing the chance of unplanned breakdowns or emergency repairs to vehicles.
Scope
Summary
AI is transforming all parts of the automotive value chain. From predicting maintenance needs and streamlining supply chains to optimizing manufacturing processes and enhancing the in-car user experience, AI enables fundamental shifts in how vehicles are designed, built, and operated.
The report covers how AI overcomes key challenges in the automotive industry. These include automotive design, ESG regulations, customer engagement, cybersecurity, autonomous driving.
AI is transforming the automotive industry
Artificial intelligence (AI) refers to software-based systems that use data inputs to make decisions on their own. According to GlobalData forecasts, the total AI market, including software, hardware, and services, will be worth $641.8 billion in 2029, having grown at a compound annual growth rate (CAGR) of 37.4% from $131.3 billion in 2024.
AI is transforming all parts of the automotive value chain. From predicting maintenance needs and streamlining supply chains to optimizing manufacturing processes and enhancing the in-car user experience, AI enables fundamental shifts in how vehicles are designed, built, and operated.
Generative AI is accelerating automotive design
Automotive design has never been more complex. On top of traditional concerns like aesthetics and safety, designers must now integrate physical and digital systems for electric vehicles (EVs) and autonomous driving. Generative AI (GenAI) can produce thousands of design iterations—from individual components to complete vehicles—based on specified inputs and constraints, like weight and aerodynamics. Some tools even work from simple prompts, such as “sleek” and “SUV-like.” GenAI can also simulate real-world performance, enabling teams to shortlist and validate the best performers before moving on to physical prototyping. However, these tools are only as good as the inputs they receive. Automakers should avoid rushing ahead without first agreeing on core design criteria.
Unlocking customer engagement with AI
The consumer market for vehicles is incredibly saturated. Automakers and dealerships must find new ways of differentiating themselves to customers through greater personalization. Automakers such as Volkswagen and Tesla have incorporated GenAI models into infotainment systems, giving their vehicles new capabilities such as auto-adjusting climate control, conversational voice assistance, and smarter navigation. In after-sales, AI-based telematics and analytics can predict maintenance, auto-schedule appointments, and reserve parts. Automakers can greatly improve customer perceptions of quality and strengthen their reputation by reducing the chance of unplanned breakdowns or emergency repairs to vehicles.
Scope
- This report provides an overview of AI and how it will impact the automotive industry.
- The report predicts how AI in automotive will evolve, including the key challenges it will solve.
- It includes selected case studies highlighting who is innovating in automotive using AI technologies.
- The report also includes a comprehensive data analysis, including market size and growth forecasts for the AI market.
- GlobalData’s thematic research ecosystem is a single, integrated global research platform that provides an easy-to-use framework for tracking all themes across all companies in all sectors.
- This report is essential for senior executives at minining companies to understand the critical benefits from integrating AI technology into their operations. Automotive companies who fail to implement AI solutions will fall behind.
- In addition, the report identifies the leading AI adopters in automotive, as well as specialist tech vendors in this space.
Table of Contents
45 Pages
- Executive Summary
- Players
- Value Chain
- Advanced AI capabilities
- The Impact of AI on Automotive
- Supplier network
- Auto manufacturers
- Sales and marketing
- After-sales
- How AI helps tackle the challenge of automotive design
- How AI helps tackle the challenge of ESG regulations
- How AI helps tackle the challenge of customer engagement
- Sales and purchasing
- In-vehicle experience
- After-sales
- How AI helps tackle the challenge of cybersecurity
- How AI helps tackle the challenge of autonomous driving
- Case Studies
- Geotab introduces an AI-based vision safety sensor to reduce collisions
- Mitsubishi Motors rolls out a GenAI customer engagement tool
- Technosoft Automotive launches an agentic AI dealership solution
- Wayve uses AI to support autonomous driving
- Ford uses AI to detect manufacturing errors
- Companies
- Leading AI adopters in automotive
- Specialist AI vendors in automotive
- Sector Scorecard
- Future mobility sector scorecard
- Who’s who
- Thematic screen
- Valuation screen
- Risk screen
- Glossary
- Further Reading
- GlobalData reports
- Our Thematic Research Methodology
- About GlobalData
- Contact Us
- List of Tables
- Table 1: How AI helps tackle the challenge of automotive design
- Table 2: Automakers that have adopted AI assistants into their in-vehicle systems.
- Table 3: Leading AI adopters in automotive
- Table 4: Specialist AI vendors in automotive
- Table 5: Glossary
- Table 6: GlobalData reports
- List of Figures
- Figure 1: Key players in AI
- Figure 2: The AI value chain
- Figure 3: There are five categories of advanced AI capabilities
- Figure 4: Thematic investment matrix
- Figure 5: Electrification is a leading focus of automotive AI integration, followed by autonomous driving
- Figure 6: Ferrari’s AI configuration tool supports endless customization
- Figure 7: Geotab’s AI vision safety sensor detects high-risk driving behaviors
- Figure 8: Mitsubishi’s GenAI tool for interactive visualizations and tailored suggestions
- Figure 9: Yana Desk helps to automate dealership tasks
- Figure 10: Three vehicles retrofitted with Wayve AI Driver
- Figure 11: Ford’s MAIVS system helps detect quality control issues along the production line
- Figure 12: Who does what in the future mobility space?
- Figure 13: Thematic screen
- Figure 14: Valuation screen
- Figure 15: Risk screen
- Figure 16: Our five-step approach for generating a sector scorecard
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