Digital technologies such as Artificial Intelligence (AI) and Machine Learning (ML) are revolutionizing the traditional processes of businesses across diverse industries. Moreover, with the availability of massive data and intelligent algorithms, AI technology is more wisely replacing human thinking ability with machine control and renovating the way people connect and interact with objects around them.
AI technology with a blend of cloud computing, computer vision, deep neural networks, and Natural Language Processing (NLP) is playing a vital role in transforming the automotive industry and fueling its growth ever like before.
Though AI technology is stretching its power across various industries, its revolution in the automotive industry is a hot topic in the market right now.
“Self-driving cars or autonomous vehicles are the best innovations of AI technology.”
With the integration of capabilities of AI and Internet-of-Things (IoT) enabled sensors, including cameras, radar detectors, and LIDAR, today, self-driving cars can travel source to destinations without the assistance of a human driver. Thanks to such advancements in autonomous technology.
A Green Signal For AI In Automobile Industry Is Every Where
Leveraging the power of built-in AI and ML-based object detection algorithms, driverless vehicles can collect data from built-in three significant sensors, identify objects in front of them, and make the perfect decisions while driving on the roads. Such intelligent analysis and the power of interpreting situations in real-time can prevent accidents and ensure safety when navigating on roads.
These advanced features and automation in driving are the major drivers for self-driving cars demand, especially in the United States of America, Japan, and Germany-like countries. The opportunities of self-driving cars in these markets were attracting sizeable investments and encouraging further growth in the autonomous vehicles market worldwide.
A Proof For Rapid Growth Of AI Technology In Automotive
According to Statista research reports, we found that the market size of the driverless cars industry is projected continuous growth in the past few years. The market value of self-driving vehicles is forecasted to grow from nearly USD 106 billion in 2021 to USD 400 billion by 2025.
The above figure represents the future scope of the autonomous vehicles industry worldwide. However, the internationalization of AI-powered for self-driving vehicles manufacturing is an issue and hampering the growth of driverless automobiles across the world. Self-driving cars need to be programmed in a way that they should obey the traffic rules and regulations of countries where they launched. But, Geo-fencing is the best option to localize or internationalize self-driving vehicles in countries when their traffic rules are different from the programmed ones.
Along with self-driving cars, on the other side of the coin, AI technology is also adopting by automotive companies to bring automation across the design, production, and supply-chain operations. Further, the role of AI technology in the automobile sector is also widely accepted for the development of driver assistance, risk tracking and assessment, and insurance claiming systems.
Let’s have a look at other significant AI applications in the Automotive Industry.
Applications Of AI Technology In The Automotive Technology
AI For Automotive Manufacturing
Robotic Process Automation (RPA) is one of the most used AI technology by automotive manufacturers. Automobile companies are increasingly launching AI-powered robots across production units for streamlining manufacturing operations and ensuring high productivity.
From design and production to inventory management, supply chain, and post-production services, AI-powered robots will play a vital role in the auto-manufacturing industry in the years ahead.
AI For Driver Assistance
Besides Autonomous driving, AI technology is stretching its significance in monitoring vehicles performance, assisting drivers, and exploring driving insights by accessing sensor data stored in the cloud. Consequently, a mix of AI and predictive analytics is revolutionizing the automobile industry.
“Tesla aimed to continuously update its AI software developed for driver assistance and autonomous driving to ensure passenger safety.”
AI For Predictive Maintenance
AI-powered applications using the data collected by Internet-of-Things (IoT)-enabled sensors can predict the performance of various vehicle batteries and engines. Such insights would help the driver to know the vehicle condition and reduce the high maintenance costs.
AI For Insurance Claiming
Once upon a time, I faced difficulty in claiming vehicle insurance. From approaching insurance providers, submitting documents and photos of damaged vehicle parts to verification and availing coverage is all a long and tiresome process.
But, with the evolution of AI technology, everything has become simple, digital, and hassle-free. AI-powered virtual or digital insurance apps help customers upload all documents and get avail insurance in minutes.
Market Share Of AI by Application Type by 2020 to 2030
Based on the research reports on the autonomous vehicle market, we have found a few thought-provoking things about the share of AI technology by application type from 2020 to 2030.
Though the challenges in manufacturing self-driving vehicles exist, the evolution and usage of AI and ML in the automotive industry are incredible. The automotive industry has already observed advancements in autonomous vehicle manufacturing operations from the world’s top electric vehicle manufacturers like Tesla and Waymo.
Hence, the popularity of AI in the automotive industry, specifically for self-driving cars, is expected to surge in the years ahead with multiple growth-reflecting factors such as reducing the burden of driving, automated traffic-free routing, personalized accessibility, accuracy in detecting objects, and finding safe routes.