Generative AI set to revolutionize how we Drive, Commute & Interact with Vehicles

 

The Indian automotive industry is one of the core sectors of the Indian economy and primarily serves as a bellwether for its current state. While the Indian automotive industry has faced many recent challenges, including the devastating COVID-19 pandemic, its growth potential is clear. As per the National Automotive Mission Plan 2016-26 (AMP 2026), the Government of India and the Society of Indian Automobile Manufacturers the sector is expected to account for 65 million new jobs within India by 2026 as companies increase production. The sector is also benefiting from new tailwinds, such as global supply-chain rebalancing, government incentives to increase exports, and technology disruptions that create white spaces. These developments will help create opportunities at all levels for the automotive industry. 

The automotive industry has always been at the forefront of innovation, constantly driving to create safer, more efficient, and environmentally friendly vehicles. As per GfK Syndicated Auto Monitor report an average Indian drive around 6 hours weekly, whereas 4 out of 10 GenZ drive more than 7 hours weekly and most of them expects their driving experience to be safer, enjoyable with in-vehicle tech, and curious about hybrid vehicles.

 

 

 

 

 

 

 

 

 

 

 

 

Source: GfK Syndicated Auto Monitor, India market
(Cities covered – Mumbai, Delhi, Kolkata, Chennai, Hyderabad, Bengaluru, Ahmedabad, Pune, Ludhiana)   

In recent years it has seen technological advancements that no one could have ever imagined. From revolutionizing vehicle design to optimizing manufacturing processes, enhancing customer experience, and promoting Sustainability, Generative AI is paving the road to a more innovative, efficient, and eco-friendly future for the automotive sector. AI’s integration into the automotive ecosystem will lead to safer, more creative, and sustainable transportation solutions as technology advances. 

 

Factors contributing to the growth of India's automobile industry & impact of Generative AI  

Aided by economic development, India is undergoing rapid motorization. Growth of car ownership and use is attributed to rising per capita income and the introduction of many car models is promoting the growth of ownership and use of cars. This growth indicates a sea change in a country that relies mostly on non-motorized and public modes of transportation. It also signifies the transformation to a car-based lifestyle in a country where motorized two-wheelers are the dominant personal motorized vehicle. In a recent study by GfK across the top 9 cities in India, the most popular means of transportation is “Driving their own car” followed by “Ride their own motorcycle/ scooter” at a distant second. 

 

 

 

 

 

 

 

 

Source: GfK Syndicated Auto Monitor, India market
(Cities covered – Mumbai, Delhi, Kolkata, Chennai, Hyderabad, Bengaluru, Ahmedabad, Pune, Ludhiana) 

It will be interesting to see how AI-integrated vehicle ownership gets influenced as more people have started traveling to their workplaces, especially in the case of Gen Z we have seen 6 out of 10 travel for work and their preferred mode of transportation is ‘own vehicle’ as per GfK Syndicated Auto Monitor report. 

According to a study by the International Energy Agency (IEA), passenger car ownership in India will grow by multi-fold over the next two decades. The study adds that the number of vehicles will grow from 20 per 1,000 inhabitants in 2016 to 175 per inhabitants in 2040. This is also evident from the GfK Syndicated Auto Monitor report, where nearly 2 out of 5 respondents intend to own a vehicle in the next 12 months. With the increasing intent of ownership, the report says that the consumers are looking for an improved driving experience – ‘driving at night’ followed by ‘parking in tight spaces’ & ‘stuck in traffic’ are the top-most causes for concern. 

 

 

 

 

 

 

 

 

 

Source: GfK Syndicated Auto Monitor, India market
(Cities covered – Mumbai, Delhi, Kolkata, Chennai, Hyderabad, Bengaluru, Ahmedabad, Pune, Ludhiana) 

Customer experience is a focal point for automakers, and Generative AI is here to help. Some of the useful and important AI features considered while manufacturing cars today include gesture recognition, voice recognition and control, V2X, and Human Machine interaction (HMI). Natural Language Processing (NLP)-based AI systems are employed in customer service and support. They can provide personalized recommendations, answer customer queries, and assist with vehicle maintenance scheduling. This not only enhances customer satisfaction but also builds brand loyalty. 

The list does not stop here for example, cars are coming up with risk assessment and driver monitoring for accident prevention and this is a great safety measure. Thus, by providing next-level safety features using AI, companies are enhancing customer experience and growing better.  

It will be prudent for auto manufacturers to keep a clear watch on how consumers are evaluating the vehicle type and brand. According to the GfK Syndicated Auto Monitor report, “Reliability & Safety” and “Performance” are the two most important brand clusters, for consumers when they consider buying a car brand. 

 

 

 

 

 

 

 

 

 

 

 

Source: GfK Syndicated Auto Monitor, India market
(Cities covered – Mumbai, Delhi, Kolkata, Chennai, Hyderabad, Bengaluru, Ahmedabad, Pune, Ludhiana)

Artificial Intelligence (AI) taking over the Automotive Industry 

Artificial intelligence (AI) has slowly begun to transform our vehicles through integrated innovations across automotive brands. There are several reasons for the growth of automotive artificial intelligence, listed below are a few factors that are crucial to the surge.  

Refining Autonomous Driving: Crucially, generative AI has the potential to pave the way for the safe rollout of autonomous vehicles (AVs). This is without putting the public at risk while the technology matures. So, autonomous vehicles can learn and adapt to different environments within a controlled setting. At the same time, marketers need to create awareness & trust among the consumers as almost 70% of Indian consumers have apprehension towards the autonomous driving tech as per GfK Syndicated Auto Monitor report. 

Accident Prevention: The integration of AI technologies has led to the development of advanced safety systems that warn drivers of potential hazards, take proactive actions, and prevent fatal accidents, resulting in safer roads for all.  

Transforming In-Car Assistance: The in-car experience is set to radically change with the help of generative AI in modern motors. AI has become a game-changer in the realm of navigation, empowering drivers to make smarter decisions on the road. Utilizing advanced algorithms, AI-powered navigation systems can analyze a wealth of data, including real-time information on road closures, accidents, traffic congestion, ongoing construction work, and prevailing road conditions. With this comprehensive understanding, these systems can offer drivers optimized and more efficient routes, ensuring a smoother and stress-free journey. The amazing features and AI-enabled applications installed into vehicles increase performance and this improves the overall experience of customers.  

For decades, in-car voice assistance has been relegated to luxury vehicles. Now, as AI becomes increasingly accessible, it's becoming mainstream. Historically considered one of the most difficult aspects of AI generation, voice recognition is powered through AI using a combination of Natural Language Processing (NLP) and ML. Trained to interpret driver cues, voice recognition converts human speech into digital understanding. Indian consumers are rapidly adopting voice assistance technology, according to the GfK Syndicated Auto Monitor report 44% of Indian consumers would prefer the same voice assistant in their car but they would still use it even if it’s different than home.  

Design and engineering: One of the most rewarding use cases for generative AI in the automotive industry is design and engineering. Generative AI can help designers and engineers to deliver new concepts. Additionally, they help improve their development cycles and enhance existing designs with the help of intelligent insights. In practice, generative AI can create intelligent 3D models of vehicles based on simple prompts or a series of rudimentary sketches. This can offer an efficient, time-saving tool to help designers to build more comprehensive concepts. Additionally, it helps them visualize their ideas more effectively. Crucially, generative AI can also optimize vehicles’ performance and safety by testing various configurations and parameters.  

The utility of configurations to deliver better road safety can continue long after the vehicle has left the production line. Because of the seamless ability of AI systems to autonomously interpret and act on data, generative AI can pave the way for more intelligent diagnostics systems for cars to offer actionable advice for repair work.  

Supply chain and production process optimization: Generative AI is transforming supply chains within the automotive industry by optimizing operations and improving efficiency. It achieves this through several key applications. Firstly, generative AI assists in demand forecasting by analyzing historical data, market trends, and external factors, enabling manufacturers to make more accurate production and inventory decisions. Additionally, generative AI enhances quality control by analyzing real-time data from sensors and cameras to detect defects in manufactured parts, reducing waste and ensuring product quality. Moreover, it optimizes logistics and routing, minimizing transportation costs and delivery times. By automating tasks like demand prediction, quality assurance, and route optimization, generative AI plays a pivotal role in streamlining supply chain operations and contributing to the overall competitiveness and sustainability of the automotive industry. 

Personalized customer experience: Customers are more inclined towards great user experience than ever, and this is where AI contributes the most to success. Customization of AI features and tools is very much possible with the use of AI for manufacturing. The freedom for each customer to personalize their vehicle makes the purchase more interesting and attracts more people for market growth. This trend toward personalization is reflective of a broader social push for a more seamless and efficient purchasing process. Considering ongoing supply chain issues and delays, consumers are becoming less patient when it comes to selecting and receiving their goods. To ensure a high-quality customer experience, car manufacturers can simplify their decision-making process. 

In the age of shortages and inefficiency, vehicle manufacturers can also harness well-trained data to create AI algorithms that understand their customers and their respective preferences. With this new technology, I believe we can expect the cars we see on our commutes to become increasingly reflective of the people driving them. 

 

 

 

 

 

 

 

 

 

 

 

 

 

Future trends and opportunities 

As generative AI advances and becomes more accessible, it will unlock new opportunities for the automotive industry. The transportation sector is expected to go through a transformation period where AI will be implemented for designing, production, and supply chains. Here are some future trends and scenarios where generative AI may have a significant impact: 

Smart mobility: Generative AI will contribute to smart mobility solutions that are more efficient, convenient, and eco-friendly. They can optimize traffic flow enhancing overall transportation efficiency. Additionally, they can create personalized and on-demand mobility services by matching customer profiles and preferences. 

Immersive experience: Generative AI can highly impact entertainment experiences for passengers and drivers, generating interactive and customized content. Through generative AI, experiences can be tailored to users’ moods, preferences, and context. Adaptive soundtracks and playlists can further enhance the driving experience. 

Social impact: Generative AI will contribute to positive social impacts by addressing various automotive industry challenges. It can aid in reducing carbon emissions and environmental impact by generating and optimizing green vehicles.  

With AI investment and development on the rise, technology's impact on our cars and the overall automotive industry will continue to grow. From helping people choose the perfect car for their families to eventually driving for them. Through high-quality training data, vehicle brands and manufacturers can stay on the cutting edge of AI innovation, harnessing its capabilities to bring our futuristic vision of cars to fruition. 

According to the GfK Syndicated Auto Monitor report, 74% of consumers would consider buying a vehicle with the latest in-vehicle tech offering which is a promising outlook for the industry. More than 50% of the consumers have expressed that the ‘Active Safety & ‘Infotainment systems must-have features and they are willing to pay a certain amount to have these features in their next new car. 

 

 

 

 

 

 

 

 

 

 

 

 

Source: GfK Syndicated Auto Monitor, India market
(Cities covered – Mumbai, Delhi, Kolkata, Chennai, Hyderabad, Bengaluru, Ahmedabad, Pune, Ludhiana)

Conclusion 

The automotive industry has always created, pushed for, and led several technological revolutions and will continue to do so. Generative AI is undoubtedly a driving force in the automotive industry, transforming how vehicles are conceived, designed, manufactured, and operated. From revolutionizing vehicle design to optimizing manufacturing processes, enhancing customer experience, and promoting Sustainability, Generative AI is paving the road to a more innovative, efficient, and eco-friendly future for the automotive sector. AI’s integration into the automotive ecosystem will lead to safer, more creative, and more sustainable transportation solutions as technology advances. 

Generative AI technology in the automotive industry continues to evolve and will soon become ubiquitous, with the potential benefits of incorporating generative AI far outweighing perceived threats. Companies embracing this technology faster will likely gain significant competitive advantages and stay at the forefront of technological innovation. As we settle into the new year, prepare to see even more AI-assistant-powered cars on the market. The future of the automotive industry is here, and generative AI can help you take advantage of it much faster.  

 

- Soumya Chatterjee, Associate Director – Customer Success Management, India, GfK – An NIQ Company