Automotive AI as an Instrument of Change and Profitability
Never before has it been more critical for automotive companies to invest in artificial intelligence (AI) solutions. Tractica forecasts that the market for automotive AI hardware, software, and services will reach $26.5 billion by 2025, up from $1.2 billion in 2017. The potential for change is tremendous, with shifts from traditional to disruptive models in the industry no longer unusual, but expected. Automotive companies are seeing AI as a new engine of profitability for the sector. As the race to a fully autonomous vehicle continues, a standard has been put into place to define six levels of automation so that automakers, suppliers, and policymakers can discuss and compare systems. These six levels of automation correlate to different consumer experiences, with a pivotal shift occurring between levels two and three. This is when AI, and not the driver, becomes responsible for monitoring the vehicle. Regardless of when full autonomy is achieved, advances in the in-cabin and out-of-car experience at all levels are valuable, particularly with respect to enhancing the customer experience and providing quick wins to companies looking to scale.