The automotive industry is one of the sectors with the greatest capacity for disruptive innovation, thanks to technological development, especially Artificial Intelligence.
The impact of technologies in the automotive sector, including artificial intelligence, is not only perceived in the promotion of the so-called autonomous or driverless car. The technological influence is also observed in other areas such as the business models of large traditional car manufacturers in the face of reduced consumer demand.
One of the technologies that is having the greatest impact on this sector is artificial intelligence, which car manufacturers are turning to for different reasons. These include lowering production costs and thus creating new revenue streams, predictive maintenance and route optimisation. All of this will enable the most innovative manufacturers to tap into a market that is expected to amount to billions of dollars in value added. However, companies in the automotive sector have to face certain obstacles to integrate AI into their operations. In fact, many companies are not sufficiently prepared to produce solutions based on artificial intelligence, as these require quite high investments and highly specialized professionals. But also very complex and well-built structures, as Bruno Fernández-Ruiz, co-founder of Nexar and expert at the Bankinter Foundation, points out when he talks about the creation of a network of connected cars within a city.
A report prepared by Business Insider Intelligence lists some of the difficulties that automotive companies have in adopting Artificial Intelligence applications and what are the advantages or contributions of this technology to the sector, among which it points out the reduction of production costs and the creation of new revenue streams. And this is something that Gregory Clark, an expert at the Bankinter Foundation, also agrees with, who believes that autonomous cars, equipped with Artificial Intelligence, are going to completely change the economy, since they will require workers with different skills.
But not only will it change the economy, it will also be a very powerful avenue of savings for car manufacturers. Artificial intelligence is estimated to provide $173 billion in cost savings across the supply chain by 2015.
However, and despite all the positive aspects that artificial intelligence can provide, the truth is that the adoption of this technology will continue to be very complicated for many companies in the sector, mainly due to the amount of investments that are associated with it.
