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Impact of Artificial Intelligence on the Automotive Industry

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Artificial Intelligence
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Artificial intelligence (AI) is changing the way we do business and the way we live. It is making breakthroughs every day, from healthcare to finance to data security to travel and transport and social media. Talking about the automotive industry, AI will bring a massive transformation. Research indicates that the value of Artificial Intelligence in automotive and cloud services will exceed $10.73 billion by 2024

This article sheds light on how Artificial Intelligence in automotive industry will impact vehicle owners, automakers, and service providers. 


  • AI driving features


When it comes to driving, artificial intelligence provides many functionalities, including fully autonomous and driver-assist modes.

One of the major concerns of the automotive industry is to ensure that drivers are safe while driving. AI provides advanced safety features that can identify dangerous situations and alert the driver if it detects a probable mishap. It can also take emergency control of the vehicle if the driver isn’t capable of driving any longer. 

It consists of multiple sensors, cross-traffic detectors, emergency braking, driver-assist steering, blind-spot monitoring, and other features that ensure the passengers’ security.

Although Artificial Intelligence has reached a stage where it can assist humans in driving, there is a long time to see roads filled with driverless cars. It is because driving is not limited to a specific set of rules. A few algorithms cannot comprehend the nitty-gritty of driving. It is a complex process that requires monitoring multiple conditions and forecasting several scenarios. The processing power necessary for a driverless car is yet not available. Companies like Google and Tesla are making several breakthroughs in Artificial Intelligence and machine learning, and the day is not far when driverless cars become a reality.


  • AI cloud services


For both — driver-assist mode and fully autonomous mode — connected vehicles require vast swathes of data. AI Cloud platforms ensure that data is available when needed. This data is not limited to low battery indicators, check engine lights, gas tanks, and oil lights. By monitoring millions of data points per second, Artificial Intelligence can predict component failure to get it repaired before it wears out. This principle is known as predictive maintenance. It will save not only the driver’s life but also their bank balance. 

World-renowned automobile manufacturer Volkswagen and IT giant Microsoft have announced a partnership that will transform the auto company into a digital service-driven business. Volkswagen wants to become a torchbearer in the automotive industry by tapping the power of Skype, Azure IoT, and Power BI. 

Also Read: How Cloud ERP helps Auto Component Manufacturers go Lean?


  • AI individualized marketing


In recent years the advertising competition has become brutal. Getting qualified leads has become a challenge. But the combined potential of Artificial Intelligence, big data, and machine learning offers a ray of hope. They can examine vast amounts of data according to set parameters and can accurately target qualified prospects. This data can suggest those products and services that users are most likely to buy. For example, a driver whose social media posts announced mountain excursions could be alerted of a sale at a nearby hiking and trekking Store. Or if the driver has a liking for cakes and chocolates, the AI system can suggest nearby bakery shops.

The AI system tracks the driver’s likes and dislikes and sends periodic messages of businesses nearby that can serve them instantly.


  • AI in car manufacturing


According to statistics, 92 million cars were produced in 2019. No wonder, assembly line robots have proved their mettle. And they have been doing so since the sixties. 

But AI in the automotive industry will completely change the way we operate. Smart robots don’t only accept humans but also work along with them. Like the Hyundai Vest Exoskeleton (H-VEX) and Hyundai Chairless Exoskeleton (H-CEX) provide extra mobility and strength to perform tenuous jobs. They sense what their human counterparts are doing and help protect their knees, necks, backs, and other sensitive areas. 

Automated Guided Vehicles (AVGs) are used to shift heavy materials and machines. Artificial intelligence can detect its path and adjust the route accordingly. 

Also, Artificial Intelligence is used for doing painting and welding jobs. Apart from filling colors and cutting window panes, doors, bonnets, roofs, and windshields, it can also detect irregularities and defects and alert the quality control personnel.


  • Driver identification, recognition, and monitoring


Artificial Intelligence can detect who is driving the vehicle using advanced facial recognition algorithms. It can adjust the mirrors, temperature, and seat according to the individual preferences of the driver. It can alert the driver to keep their eyes on the road by observing their head position, eye gaze, and eye openness. It can detect the driver’s posture and can adjust the seat accordingly. It can also change the Heads-Up Display (HUD) according to where the driver’s eyes are focused. Besides, it can also deploy airbags in a manner that will minimize the injury based on the driver’s posture.

AI in automotive industry is making significant advancements and developments. Coupled with the power of machine learning and big data, it will revolutionize how we will reach our destinations. It will not only streamline traffic movement and monitor jams but also increase the driver’s safety. It will also open up new marketing and entertainment opportunities. 

At Sage Software, we are home to world-class ERP and CRM software that will provide practical solutions to your specific business challenges. To know more about it, You can also write to us at


Disclaimer: All the information, views and opinions expressed in this blog are those of the authors and their respective web sources and in no way reflect the principles, views or objectives of Sage Software Solutions (P) Ltd.


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