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The Role of AI in the Automotive Industry

Insights

2 July 2025

Ariel Gatson

A technological expansion of AI in the automotive industry is on the horizon, and could soon shift the way companies and consumers view their products. Whether it be the production or usage of a vehicle, AI has woven into every aspect of the car process. Every second, AI is becoming more advanced. Artificial intelligence is not a trend, nor a marketing tactic used to help sell a few more cars; instead, AI will play a key role in how cars are built, delivered, and driven in the future.

Car Experience

AI has transformed the driving experience for many consumers. Navigation systems have become more intelligent, and voice-activated virtual assistants have become more personalized.  At one time, virtual assistants could only answer questions very sparsely. Now, virtual assistants can hold full-on conversations with detailed answers. For example, virtual assistants could be asked, “Where can I find a good Mexican restaurant in my area?”. Assistants would respond with a list of local restaurants, menu options, the ambience of the restaurants, and much more.

GPS systems are advancing as well due to the addition of AI technology. Navigation systems are now more precise because AI algorithms study traffic patterns and user preferences. This is only a snippet of what AI technology can do inside cars. The goal of this new technology is to make cars more personable and knowledgeable. Across the entire car industry, manufacturers are leveraging AI in hopes of refining the experience for drivers.

Safety

Safety has always been a priority in the automotive industry. With AI, accident prevention measures have increased across all car brands. Advanced Driver Assistance Systems (ADAS) range from cruise control, brake support, to even self-driving cars. One prevention method that is breaking ground in the industry involves monitoring drivers’ eyesight to determine how fatigued a driver is. If AI technology deems the driver fatigued, the car will put up a message encouraging the driver to take a break. This is done by a cabin camera, which is generated by AI technology. It doesn’t just stop there; in fact, car brands are using AI to analyze drivers, store driving data, and use said data to heighten the efficiency of safety precautions.

Autonomous Driving

Self-driving cars are no longer an idea of the future; instead, self-driving cars are the present. Through AI, autonomous driving cars have become practical. AI creates algorithms and tracks human driving patterns and uses this information to propel autonomous driving. Autonomous driving comes in at many levels. In some cars, autonomous driving can be fully autonomous, which means no human intervention is needed. For other cars, autonomous driving is partial: requiring some copiloting, a bit of brake control, or lane assistance. Regardless of the magnitude of autonomous driving, the technology that is used is being enriched by AI.

AI in the Production of Cars

AI is also being incorporated into the production side of cars. Many car brands are enhancing their manufacturing strategies with AI. Artificial intelligence can monitor and analyze the consumption of cars and forecast the number of cars that may be needed. Examining demand and suggesting supply is not the only thing AI can do. AI is even capable of doing performance reviews on cars. This helps with increasing the efficiency of cars and making sure cars are safe. Most leaders in the automotive industry are now anticipating that the entire production process could be done with the support of AI. With AI already being applied throughout the car process, executives predict that soon every step will utilize artificial intelligence. This isn’t an objective of just one car brand; this objective could be carried out around the entire industry. Using AI to develop and create cars could soon be the norm.

Car production using AI

Public Drawbacks

Despite the many advancements AI has brought forth, there are a few drawbacks that hinder the growth of AI in the automotive industry. Consumers are still weighing the pros and cons of AI in cars. The public is not completely sold on AI in cars yet. This uncertainty is fueled by consumers’ knowledge gap of AI in autonomous driving. Consumers’ hesitation can be reduced by informing and educating the public about the measures car manufacturers are taking to ensure AI is reliable. This situation will cause a few manufacturers to hesitate when it comes to integrating AI into vehicles; however, with learning, consumers could become more inclined to artificial intelligence in cars.

Cost Drawbacks

The integration of AI is not a measly cost. Many car manufacturers are investing large amounts of money in artificial intelligence. AI integration requires a lot of research and time. Implementing AI also requires trial and error, and that’s another cost. With all the expenses car manufacturers are bearing, they could offset that by increasing the price of the final product. A price increase poses the question: Are there a sufficient number of customers willing to pay this upcharge? Artificial intelligence will be an investment for both manufacturers and consumers.

Professional Impact

What should professionals or job seekers do now that AI is being used heavily in the automotive industry? The best solution is to upskill and reskill. For professionals to adapt to the advancement of AI, upskilling and reskilling could potentially prove very helpful. Teaching AI how to learn and strengthening it would put professionals at the forefront of competition. The nature of AI is diverse, leaving plenty of room for professionals to grow. Being able to interpret the data AI produces is an asset to any company. Industry professionals could find it helpful to embrace AI, as it is most likely the future.

Every day AI is growing stronger, and as it grows stronger, many automotive companies will start relying on AI to help create the latest innovations. Artificial intelligence has the potential to transform the way cars are driven, produced, and experienced by consumers. Companies that utilize AI could soon lead the industry in innovation.

For more information on our capabilities in the automotive industry, visit our Automotive Industry page.

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