How Artificial Intelligence Will Reshape the Automotive Industry

Photo by Pierre-Michel Villa on Unsplash

We hear a lot about Artificial Intelligence nowadays, but not so many people understand what the concept fully entails. Even confusing to many is the debate on the correct definition of artificial intelligence.

Artificial Intelligence, however, is much more straightforward than others think. Simply speaking, AI through machine learning and the creation of algorithms which work and react like humans, or simulate human intelligence in various processes.

The use of AI has been on the rise for the past few years. Many sectors are already using it in various areas, from healthcare and manufacturing, to transportation and customer service. Even the advertising and website building sectors are already using AI. Many of today's websites, for example, are now run by AI in the background or made with the help of an AI website builder.

In the automotive industry, every stakeholder is already in search of a way to capitalize on the AI trend. The car giant Toyota, for example, is on the forefront of this, with investments worth over $1 billion already channeled to developing AI-based technology.

While most of us only think of driverless cars when AI is mentioned, there are other ways the technology is set to change the automotive industry. Here are just a few of them.

1. Semi-Autonomous and Fully Autonomous Vehicles

Although the technology for driverless cars began decades ago, the slow development of technology back then kept away the reality of autonomous vehicles. However, recent extensive research and development into AI are making the dream of self-driving cars into a reality sooner than we think.

Tech corporations are already fully committing their efforts to automated car development. Semi-autonomous vehicles are now under trials with many inching towards commercialization. Companies like Tesla, for example, are comfortably taking their semi-autonomous cars on the road for testing before release.

With such rapid developments, having fully autonomous cars are closer than we thought. Pretty soon, you will just get in your car, and it takes you where you need to go without you having to drive it. The vehicles can easily find a parking space and park themselves, too, saving you the time and stress of doing so.

2. Infotainment & Overall Connectivity

In our modern world, connectivity is everything. This is evident in the success of social media. People want to be connected to information all the time, every time. Automobile makers are taking notice of this, and using AI to help them incorporate connectivity in the cars they are making.

More automotive companies are now integrating AI-based infotainment systems that allow drivers, and their passengers, access to the internet, smartphone applications, and communication features. These features are accessible through voice commands in the comfort of your car.

The most crucial element is the AI’s ability to connect vehicles while on the road. This critical innovation is possible through vehicle-to-vehicle technology, which enables cars to communicate with one another. As a result, the V2V technology will help reduce accidents as cars will inform each other of where they are and what they are doing while in transit.

3. Internet of Things

Analysts predict an increase in the number of cars that will connect to the internet. With the development of vehicles possessing smart sensors, smart applications, and big data capabilities, eventually, the Internet of Things would become part of it as well.

The incorporation of IoT will enhance a vehicle's performance and safety by sending reports on the condition of the car. Vehicles will automatically send performance data, report problems, and diagnose software updates through IoT sensors to their manufacturers, allowing remote updates and correction.

4. Cloud-Hosted Intelligence

Combining cloud computing and AI platforms is bound to make life easier for drivers. The use of cutting-edge cloud technology will assist drivers in locating gas stations to refuel, and even find restaurants for you and automatically order food as you approach the restaurant.

Through big data analysis, cloud computing will provide the driver with options to identify nearby landmarks while also providing reminders whenever you forget something you need to buy on your way home.

Many aspects of the driver's life will be part of the vehicle's intelligence. The AI technology, combined with cloud-hosted information, will eventually act as the driver’s virtual assistant.

5. Smarter Marketing with AI

The use of Big Data, advanced analytics, and other innovative technology together under AI helps make automotive companies produce cars that are substantially a better fit for the driver.

Through the platforms provided by AI, car makers can easily communicate and engage with their customers. Understanding the customer's behavior will go a long way into building a much better relationship between the manufacturer and the driver.

Marketers can also partner with car manufacturers to use the programmed media to advertise their media campaigns and content to the drivers. With such a creative way of marketing, companies can reach a much more comprehensive audience efficiently. The driver can communicate any issues he may have with the car, too, while the car maker can quickly inform the driver of any new changes or updates the vehicle might have to undergo.


The rise of Artificial Intelligence capabilities is set to revolutionize our driving experience with the smart car phenomenon. With the resources and advancement in our computational power, developers are expected to create technology that will take artificial intelligence to a new level.

More than driverless cars, environmentally-friendly vehicles are also expected to be popular in the future. Artificial Intelligence indeed will have a lasting impact on the future of the automotive industry, and if your business is in this sector, it only means one thing: you need to understand AI now and how it affects your business if you want to keep ahead of your competition.