The automotive industry now has all the prerequisites for a breakthrough in the application of artificial intelligence and jobs. We are talking about ADAS (Advanced Driver Assistance Systems) and other technological innovations. For example, in Israel, the company Mobileye has developed a hardware-software complex. Its task is to recognize potentially dangerous situations on the road, warn the driver about them and control the maintenance of a safe distance. Such solutions are already used by AI-automotive leaders (for example, Tesla, Mercedes-Benz, Audi and BMW). The future of the automotive industry is behind ADAS technologies.
Modern AI technologies are being actively implemented in all fields. Artificial Intelligence is used, among others, in marketing (e.g., in the automation of promotional tools), the financial industry, security, and data sharing. Read more info about this!
However, the leading application of artificial intelligence technology remains in the automotive industry. Experts from the U.S. analytical company Lux Research believe the market for these technologies will be $50 billion by 2025. The Japanese market research company Yano Research Institute is even more optimistic, predicting a $100 billion market for ADAS already by 2023.
One of the key applications of artificial intelligence is the automation of time-consuming routine work that people do today. Many people perceive this as a threat to stability in the labor market, but we should rather talk about the fact that the introduction of artificial intelligence will create new professions. First of all, artificial intelligence can be used in the monitoring of systems using sensors. In this case artificial intelligence can start or stop certain production processes based on the readings of sensors. In addition, artificial intelligence can be used to predict product quality by building analytical models, allowing to identify most problems already at the initial stage of production.
Almost all major automotive concerns are focused on the production of unmanned cars. In order to keep up with their competitors, automotive concerns either create their own divisions to develop artificial intelligence systems or join forces with promising startups. For example, many companies are developing and testing car models with artificial intelligence control. Such cars will have no steering wheel or pedals. The entire driving process of AI-controlled cars will be controlled by synchronized computer systems.
In general, the forecasts for the sales of unmanned cars in 2022 is 5 million units, and in 2035 more than 30 million.
When it comes to the operation of a system with intellectual capabilities that surpass human ones, it should be assumed that it can do literally anything. In this regard, there are several options for controlling the capabilities of artificial intelligence from physically restricting its access to the Internet or various applications and processes to developing human-friendly motivations. For now, this sphere, as well as the industrial application of artificial intelligence itself, is at the stage of development. In addition, there is a need for the development of a legal framework to regulate the use of artificial intelligence. It also requires regulation of AI in the workplaces.
5 Factors of Influence of AI on the Automotive Industry
There are several factors of the impact of artificial intelligence on the automotive industry. Let us consider each of them in more detail.
Use of biometric data
The next generation of the automotive industry requires the use of biometric data. For now, we are only talking about the production of cars with a built-in autopilot function, like the new Tesla models. Fully autonomous vehicles will not take to public roads for the time being, due to the high risk. In the next few years, engineers will have to integrate more and more sensors into cars that monitor human condition and behavior. This will allow artificial intelligence to understand driver and passenger behavioral factors to better respond to road conditions.
In the near future, artificial intelligence in cars will work with human biometric data:
- Breath analysis;
- Speed of response to road conditions;
- Hand grip on the steering wheel;
- Heartbeat to determine the level of fatigue and more.
Special sensors that are not visible to drivers and passengers will be used for this purpose. This is already practiced on premium new cars.
Connecting cars to the internet
For artificial intelligence to work correctly in cars, a stable internet connection will be required in each car. For this, special modules for signal reception and a processor for data processing will have to be implemented during production. This will be needed for updates and machine learning. Such technology is already available on some models, but in the future it will be ubiquitous.
The Internet should be accessible from anywhere in the world. This will probably require 5G modules and other technological solutions.
The impact of ai on car insurance valuations
The introduction of artificial intelligence into cars will affect the field of auto insurance. The cost of an insurance policy depends on many factors, including the driver’s experience, age and even health status. A change in conditions usually entails a dramatic change in the cost of an insurance policy. How to assess the risks if the car can be driven not by a person but by an artificial intelligence? For this purpose, insurance companies will develop new algorithms for estimating insurance events and the cost of policies. It is likely that at first, insuring a car with an AI will cost more because of the fears and risks associated with the unpredictable behavior of such a car on public roads.
Different scenarios for the use of ai in the automotive industry
Artificial Intelligence technology for cars can be applied in two scenarios: driver assistance and fully autonomous mode.
- Driver Assist. AI provides advanced safety features for connected cars. Dozens of sensors assist artificial intelligence in identifying dangerous situations. Either the technology will warn the driver of a possible abnormal situation, or the AI will take control of the situation to avoid accidents and minimize the consequences of an accident.
- Self-driving cars. Self-driving vehicles will require an enormous amount of computing power to operate. Driving now involves more than just following a set of rules or algorithms; autonomous vehicles are now learning.
The development of personalized marketing for auto buyers
Thanks to AI, the automotive industry can expect successful marketing automation. Competition in the advertising environment has become fierce. Advertisers are competing for every click, every SMS, every email addressed to an abstract recipient. By connecting AI to big data, car infotainment systems can be used to offer products and services to drivers based on large amounts of raw data. For example, technology based on a driver’s tastes will be able to suggest an appropriate restaurant or help a driver find his or her favorite gas station chain with minimal fuel in the tank.
By the same algorithm, we observe AI impact on marketing.
All of the factors described in the article will affect the auto industry and AI in the future. There is no doubt that in any scenario of AI in automobiles, it has a huge impact on the industry, production technology, and related areas (insurance, marketing, financial valuation, credit, and so on).