AI led disruptions changing the Automobile market dynamics
KPMG’s 2017 Global CEO Outlook revealed some interesting insights gathered from 1300 CEOs in world’s top 10 economies. 74% of the CEOs said that they are striving to become the disruptor in their respective industries. Yes, that’s some rage to become the disruptor.
Disruptors with the help of sound business strategies build on next-gen trends can become a market leader. More often than not, having a keen eye to foresee the most disruptive trends in your industry pays most. If you are in the automobile market and not living under a rock you must have already come across the ripples made by Google’s Waymo driverless car, Toyota with its concept AI car at CES 2017, autonomous truck startup Otto and many more. But the uprising of AI led disruptions which are changing the automobile market dynamics at commercial, as well as domestic level, is not sudden. Tech giants have spent more than a decade in bringing AI led automotive solutions closer to users. It is time we dig deeper and find out the driving force behind AI becoming the next big thing in the automobile industry.
Data Analytics fueling the disruptive AI trends
We stepped into new millennium riding a strong wave of digitization. Automobile industry too jumped the bandwagon with steady transformation into technologically advanced digital machines. Autonomous driving is deemed as an effective solution for challenges such as workforce crunch. But the benefits surpass the goal of troubleshooting. AI led automotive solutions are adding much more value to the user experience.
Mobile connectivity & autonomous driving are coming out as the most desirable technology advancements in the industry. Both of these are dependent on Data analytics & programming proficiency of the manufacturers. While we can say that these are two major offerings the practical value generation is at a broader scale.
A connected autonomous vehicle comes with amazing possibilities for the owners. Reduced car breakdowns with predictive maintenance, automated rescue calls with real-time connectivity, concierge service notification, lifestyle recommendations, Fuel consumption optimization by reading the driving patterns and networked parking are few of them. The backbone of the system generating these user benefits is data analytics which enables the artificial intelligence led automobiles to make most of their advanced manufacturing.
Thus tech giants and OTT players are teaming up with Original Equipment Manufacturers (OEMs) to read the user behaviour with the help of AI and forge strategic partnerships along the value chain. Thus the manufacturing decisions are now based on the ingrained consumer behaviour affecting the market trends.
AI-powered platforms customised to users driving patterns
“Artificial intelligence in cars is going to be efficient in every scenario of a user’s life because it is constantly learning from data generated by the user’s behaviour,” says Rupert Stadler, Chairman of the board, at Audi AG.
AICON, an AI-powered platform by Audi caters to the specific requirement of its C-suite centric user segment. It enables commuters to conduct meetings with tablets and seating structure that can rotate 360 degrees. The car is a level 5 autonomy product which is efficient to take other decisions on its own to suit the requirements of the commuters. Volkswagen is coming up with similar integrated AI platforms for its other brands such as SEAT and Porsche where the Car will be capable of adjusting to the driver’s mood and functioning completely on voice commands.
And these are only a few examples from the umbrella of one automotive brand. Some exceptionally distinct players in the foray are doing more extensive R&D to develop AI led automotive platforms for niche user segment.
How it affects the Automobile market dynamics?
Manufacturers are gearing up to put brains inside the steering wheels rather than behind it. Integrated AI platform driven cars customized to a particular user segment can crunch 30 trillion data points per second. And OEMs are continuously pushing this limit. Bosch is putting around 3000 engineers at Stuttgart and Bengaluru in developing similar AI-powered platforms. Other IT giants such as Intel, Cisco and IBM are also stepping forward with their cloud-based solutions for AI enabled automobiles.
The encouraging sentiments about the AI-powered autonomous automobiles are not limited to manufacturers. European nations are making an effort to ease the inclusion of AI-powered public transportation services with generous regulations. Netherlands has made the ICE (Internal Combustion Engine) type approval regulations globally low. With BMW AG and General Motors Co. on a shopping spree for autonomous vehicle startups and establishing a noticeable presence in silicon valley, US is also witnessing big bets on AI led autonomous automobile segment. One can say that the tie-ups between technology giants foraying in this space and niche service providers in AI domain are happening at an electrifying rate. It seems that no one wants to left out in capitalizing the AI-led autonomous vehicle segment.
The verdict is unanimous. Automobile industry worldwide is set to change the user experience for once and for all with AI led disruptive practices. Senior partners from Mckinsey have projected that these disruptive business practices in automobile industry will be generating as much as 25% business revenue by 2030 itself. So next time, when you are thinking about the car of future, think about less of driving and more of AI led magical user experience.
