AI in the Automotive Industry

Artificial Intelligence (AI) has had a clear impact on many business sectors, but it is particularly powerful in the manufacturing and automotive industries. Projections show that AI in the automotive industry will have a compound annual growth rate of almost 40 percent reaching $15.9 billion by the year 2027.


The world is seeing a continued increase in the demand for connected vehicles and smart technologies such as voice and image recognition. The result is an industry that will continue to rely on both AI and automation in the design, production, and use of automobiles.


Beyond Autonomous Cars

For many, the idea of AI in the automotive industry conjures up images of autonomous or self-driving cars. These vehicles are certainly one of the more visible applications of the technology, but there is so much more behind the scenes — and under the proverbial hood. AI and automation has become essential in the design and production of automobiles, as well as the thousands of associated parts that go into every car. Automation and the use of smart robots has been crucial to the manufacturing process.


AI has also become a critical part of the interplay between the production and the sales of automobiles. Sales data and vehicle data can be used in predictive modeling to better regulate production according to real-time demand. This sort of agility is needed as the industry has seen multiple supply chain failures during the recent pandemic.


Artificial intelligence and automation are utilized across all three primary categories within the automotive value chain:



The manufacturing process starts with design and progresses through the supply chain, production, and post-production. Leveraging AI in the automotive industry enables the design of the vehicle as well as the equipment and robots used in the building of the autos. Examples include AI-powered wearable exoskeletons that designers can wear to help develop better safety and comfort in cars.



Transportation benefits from the use of AI in the automobile industry by developing driver assist programs, autonomous driving, driver risk assessments, and driver monitoring, such as monitoring a driver’s eye to identify the danger of falling asleep at the wheel.



AI can be used for predictive maintenance and notifications for things like engine and battery performance, as well as insurance programs that monitor driver behavior in calculating risks and costs.



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