AI in Automotive Industry

Several industries have benefited from artificial intelligence, including the automotive sector. AI provides the pathway to a better economy and a more fruitful consumer experience, which will speed up automotive processes.

AI in automotive industry has risen to have an essential part in the interaction between the manufacturing and retailing of automobiles. Predictive modeling can be applied to vehicles and sales data to effectively manage manufacture in response to current demands.

How Is AI Impacting the Automotive Industry?

Many multinational firms have been impacted by artificial intelligence (AI), but the automotive & manufacturing sectors have seen the greatest influence. By 2027, $15.9 billion is the estimated market size for Artificial Intelligence in the automotive industry, growing at a CAGR of 39.8% from 2019 – 15th June 2020 London (Global Newswire). Recent research states that the market of automotive artificial intelligence is expected to extend at a CAGR of 21.6% till 2030 which was USD 2.54 billion in 2021.

In the past, AI was only used in cars for cruise control and parking but today AI has become more advanced and useful providing self-driving cars, AI robots for manufacturing, predictive management, etc.

As we know, Artificial Intelligence (AI) has become more widely available in the automotive industry, and many automobile industries have placed a high priority on safety. Autonomous cars & driving acknowledge drivers about what is going on around them in real-time helping them in taking the right decisions that prevent accidents.

AI and automation are now becoming essential in the design as well as the manufacture of automobiles. It might seem expensive in the beginning but their adoption leads to great success. Hence it is clear that AI will have an extensive impact on the automotive industry in the coming years.

Top AI Use Cases Transforming the Automotive Industry

There is a wide range of used cases of AI in automotive industry that is radically changing the automotive future, some of them are mentioned below:

1. Digital Twin in Automotive Manufacture

It seems quite expensive and time-consuming to design & also test thousands of parts of automobiles. A virtual model used to verify procedures, goods, and services, the digital twin was first developed 20 years ago. In safe, virtual, and economical worlds, strategists, scientists, & engineers can investigate real-world events.

Digital Twin gives in-depth knowledge about the performance of the car and its auto parts by providing cost-effective testing of the product. These technologies can also be utilized for testing repairs, fixes, and upgrades. The industries can save money as well as time simultaneously and can get a final product with minimal defects with the help of digital twins.

2. Driver Monitoring Systems

Driver monitoring systems by AI in automotive industry are amazing AI models which can not only guide drivers but also monitor their tiredness and alert them. All companies should adopt this system in their automobiles for better customer experience. Companies can hire software developers in India for their automobiles.

Driver monitoring system checks on whether the driver is attentive or dizzy. Alarms are there to alert the drivers, AI helps in navigating the route, provides maps, and entails additional information about the route like weather forecasting, bumps, and traffic.

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3. Automotive Insurance

In the automotive industry, AI has great potential to bring together drivers and insurance in the event of an accident. The use of AI technologies can facilitate the processing of insurance claims after an accident or other crisis.

On the driver’s end, AI tools like object detection and picture databases can speed up the collection of event information and the processing of insurance claims. On the other side, insurers can perform a better analysis of car damage using image analysis and also eliminate disputes & quicken the claims procedure.

4. Supply Chain

One of the most common uses of AI in automobile sector is supply chain management and automation. The producers of automobiles have extensive supply chains spread over several places. Every supply chain disruption raises the price.

A fully automated system for making supply chain management decisions, and adjusting routes and levels to the estimated rise in demand for parts, can be created by manufacturers with the use of AI-powered supply chains.

5. Quality Control

Since many automobile companies now employ machine vision for quality control, it is not adaptable to modifications to the product and is able to find a small percentage of basic errors. The process is slower, can have more errors, and is more expensive when the vehicle examination is performed manually. The highest objective for maintaining a high customer count is keeping quality control.

Machine learning and computer vision-based quality control solutions may identify a large number of defects at once & can keep an eye on abnormality detection in the vehicle. It can significantly improve the effectiveness of the quality control system and virtually remove human interaction.

6. Demand Forecasting

According to current economic conditions and modifications to the business environment, AI solutions can forecast demand. It enables producers to cut expenses related to extra inventory by adjusting output in accordance with demand.

The most complicated supply chain ecology exists in the automobile sector, and demand forecasting using AI has been proven successful. Along with integrating with other technologies such as blockchain, IoT, etc, it also gathers information about shipping and the condition of the equipment.

7. Equipment Predictive Maintenance

In the past, manufacturers used to check machinery and equipment daily to ensure there was no problem that would lead to failure and these maintenance costs also affected the budget. But since Artificial intelligence in the automotive industry has produced easy solutions that have deducted maintenance costs and also saves time resulting in more as well as fast production.

Today with the help of IoT sensors this process of maintenance has been eliminated. Now we can install IoT sensors in the machinery that automatically collects the data from the equipment and sends it to AI systems which detect if there is any issue in the performance and inform the manufacturers or workers about the detection.

8. Autonomous Vehicles

This is a hot topic in the field of AI in automotive industry these days. Autonomous cars are self-driving cars that don’t require human input. Although it is still under work soon this will become a reality.

Autonomous vehicles will result in less number of accidents, and no traffic jams, people who can not drive can also ride in autonomous cars. Also, it will eliminate driving fatigue due to long journeys, users can rest and remain fresh when they reach their destination.

9. Customer service chatbots

A good conversation engages customers and fosters a bond of loyalty and respect between the customer and the company. AI can help you in serving your customer on time. Conversational AI will reduce the work for employees helping them with basic work.

AI tools can help customers in choosing the right car, explain the features of the car, and also it can prepare a test drive for you, and can assist them with driving as well. Artificial intelligence in the Automotive industry is not only beneficial for automobile companies but also enhances customer experience.

10. Manufacturing

Manufacturing is the most important and basic part of the development process of automobiles. As we all know, the manufacturing process requires a large workforce and it is time-consuming as well. Using AI in automotive industry like IoT sensors & AI algorithms will not only help in maintenance but also optimizes manufacturing processes.

For instance, workers will have to walk to the conveyor to pick up the material and come back to the manufacturing site which increases the labor and also wastes time with the help of AI robots that can be resolved. You can set up robots for picking up the material and bringing them to workers resulting in less labor and it will also reduce the workforce.

11. Emission monitoring

Global efforts are being made to slow the rise in carbon emissions. Several automobile companies still lack the tools necessary to precisely measure their carbon emissions. However, environmentally aware companies like BCG are already developing AI-based solutions that assist in measuring the release of greenhouse gasses and lower their carbon footprint by over 30%.

It is now very important for automobile companies to adopt AI solutions to monitor gas emissions automatically. AI sensors can gather data from additional sources like satellites, layer it to fill in any gaps, and carry out effective emission monitoring procedures. Automobile companies should hire artificial intelligence developers in India for building AI emission trackers to control global warming.

12. Facial Recognition in Cars

To improve convenience and safety, face recognition technology is being introduced into the latest models of automobiles. Many applications for facial recognition in cars exist, from car initiation to theft prevention.

Facial recognition features in cars can be beneficial for car owners in many ways. They can set permission and restrictions for others, for example, restrictions like speed for children who are learning car driving & permission for people other than family which will increase security. AI-based face recognition should be quite powerful so that it can recognize owners even if they change appearances like glasses, beards, and at night or light reflections as well.

13. Collaborative robots

Source: Youtube

Robots have been used for painting & welding since far before but now AI in the automotive industry has introduced collaborative robots also known as cobots which are also capable of assembling. Cobots are safe and eliminate the risk of hurting humans.

Cobots are used in various ways to help the workforce like picking or bringing materials for the workers, lifting heavy weights, etc which will reduce time and effort in the manufacturing procedure. Manufacturers can handle extra components while still automating new activities thanks to collaborative robots. Cobots are capable of helping auto manufacturers in introducing new vehicle models to market more quickly and at a lower facility expense because of the minimalized assembly line modifications.

14. In-car voice assistant

Car drivers get distracted while driving due to many reasons like ringing mobile phones, setting navigation, opening, and closing windows, on & off A.C., etc. All these activities can cause accidents due to distraction. AI-based In-car voice assistants can reduce casualty and increase safety by doing the above tasks on voice command.

Switching to voice assistant will terminate the use of buttons, ultimately reducing the destruction. The most recent voice assistants have the capacity to learn, consider different dialects, comprehend multiple commands at once, and even think. This implies that as you spend more time using your car’s voice assistant, it will get better at responding to your commands and interactions.

15. Driver behavior analytics

Today’s driver monitoring systems analyze driver behavior using unique smart sensors and, when required, highlight dangerous driving habits. It is now possible to analyze huge quantities of information and produce fresh results due to recent developments in artificial intelligence in automotive industry.

AI can be used to enhance driver monitoring systems to recognize driving behavior. Also, by utilizing real driver distraction detection techniques, AI signals can notify drivers and provide them with advance warning indications for protection if the driver is influenced by any situation.

16. Route optimization

Route optimization guarantees deliveries are always made on time and at the lowest possible cost and fuel consumption, and is one of the most crucial aspects of trip planning. AI Route optimization enables transport & logistics companies to integrate information from different sources as well as make the right decisions about the travel route.

The route optimization view is being transformed by AI, machine learning, and cloud data. AI makes sure that the vehicles take the most efficient route in real time which results in fast deliveries. AI algorithms also forecast weather conditions, and check out routes with the least traffic helping the driver make the right decision at the right time. Logistic industries must hire Indian AI developers for their AI route optimization.

17. Fleet management

By decreasing the amount of time spent on manual work and documents, AI-powered fleet management solutions can greatly assist fleet managers. AI is used in current fleet management software to simplify fleet management duties and assist you in fleet optimization.

AI is developing beyond basic prediction abilities. AI is now capable of a wide range of activities, including route optimization for best fleet productivity, educating your drivers to adopt better-driving practices, and tracking & optimizing your fleet’s whole maintenance plan.

18. Generative design

Engineers can produce lighter, stronger, and more environmentally friendly vehicle components by utilizing generative design which makes use of artificial intelligence. Modern engineering enables manufacturers to produce better components more quickly while upholding safety and environmental laws.

Based on the information provided by the engineers, AI-based generative design systems can create many designs of a single component. Many popular automobile companies are already using generative design to create good quality and durable auto parts.

19. Connected vehicles

Artificial intelligence in the automotive industry is achieving new heights. AI, IoT, and machine learning advancements have now made it possible for cars to communicate with each other. Vehicles connected will make autonomous driving more secure and accurate.

Travel times and traffic jams can be reduced by connected vehicles. The road condition would be better understood by traffic managers, allowing them to better regulate traffic flow. For example, cars can communicate to maintain a safe distance.

20. Navigation

Drivers can make more accurate decisions regarding navigation by examining the condition of the roads. Advanced AI systems are trained to suggest the most efficient route suitable for you according to the information it gets from various sources about nearby traffic jams, road construction, accidents, and other situations.

By choosing the best route using the shortest path algorithm, GPS navigation devices help you reach wherever you desire in a reasonable time using the map information saved in it. Navigation systems are now installed in almost every application and device today.

21. Marketing

Many automotive industries are employing AI for their marketing due to its high scalability & accuracy. Marketing experts may find new chances for popularizing and marketing, automating lead management, tailoring advertisements, estimating demand & sales, and enhancing marketing tactics by analyzing client purchase cycles and information from social media.

22. CPQ automation

The process of automating product configuration and price quote generation using AI technology is known as CPQ automation. Managing product information, computerized pricing and discounting regulations, as well as making quotes and proposals utilizing software are all included in automation.

The old version of CPQ was unable to manage large amounts of data but after the software adopted AI its capability increased, and now it can handle thousands of data altogether. AI-driven CPQ automation enables car manufacturers to engage in activities like handling contracts and providing rewards & discounts to customers easily.


The automotive industry is experiencing a drastic change, all because of the adoption of AI in the automotive industry. AI is playing a vital role in manufacturing, designing, marketing, and maintenance of car auto parts. It has decreased the dependency on humans resulting in fast and more efficient development.

With the use of AI in this sector, we can overcome all the problems like legal issues and security problems. The future of the automotive industry is bright and exciting thanks to artificial intelligence which is going to get more advance in the coming year eliminating human interference in the production process.


Can AI be used in the vehicle manufacturing process?

The efficiency of the car manufacturing industry is already being enhanced by AI technologies. The use of AI solutions can boost automation while minimizing development time will help in every aspect of the supply chain to the manufacturing processes.

How does the AI system enhance the automobile sector?

The most popular advancement in AI in automotive industry which is extremely beneficial and enhances the automotive sector at a high rate is driving assistance systems as well as self-driving cars. Driving technology of present times is much better and more advanced as compared to it was in past years as today’s technology has amazing features of learning from past experiences as well as mistakes.

What will be the future of AI in Automotive industry?

Artificial intelligence in the automotive industry is already being employed by manufacturers for fast and accurate development. In the future, AI is going to make our dream of autonomous driving true. Self-driving cars and connected vehicles are soon going to be introduced in the autonomous industry.

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Rahim Ladhani

Rahim Ladhani

CEO and Managing Director

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