The German economy is increasingly embracing artificial intelligence (AI), with 27% of companies now utilizing AI, a significant rise from 13.3% the previous year. While AI remains a lower priority for around one in five businesses, 17.5% plan to adopt it in the coming months.
Klaus Wohlrabe, Head of Surveys at IFO Institute for Economic Research, noted, “The trend is likely to accelerate, with companies expecting AI to significantly boost productivity by more than 10%, a potential game-changer for the economy.”
This shift is particularly evident in Germany’s automotive sector, which is known for its engineering expertise and innovation. The industry, led by iconic names like Mercedes-Benz, Audi, BMW, and Volkswagen, is at the forefront of the technological revolution, with AI transforming the landscape of car manufacturing and redefining the future of mobility.
A New Era of Automotive Innovation
Germany’s leading car manufacturers—Mercedes-Benz, Audi, Volkswagen, and BMW—are harnessing the power of AI to revolutionize every aspect of the automotive lifecycle. From the initial design phase to manufacturing and post-sale services, AI is transforming traditional processes into dynamic, data-driven strategies. These companies are at the cutting edge of automotive innovation, using advanced AI technology to not only set new benchmarks in the industry but also to enhance the driving experience significantly.
AI algorithms have become indispensable partners in automotive design studios. By analyzing extensive data sets, these systems anticipate consumer preferences, enabling designers to create vehicles that are visually striking and aligned with market trends. AI-powered simulations further allow engineers to test and refine designs in virtual environments, streamlining development and cutting costs.
Regarding manufacturing, German automakers oversee AI-driven advancements. They integrate machine learning (ML) and robotics to boost efficiency and ensure quality control. AI-driven predictive maintenance keeps machinery running smoothly, reducing downtime and minimizing disruptions. Additionally, AI-powered automated inspections can detect even the most minor defects with greater precision than the human eye, enhancing overall production standards and elevating the quality of the final product.
Also Read: Connected Cars: How Europe is Transforming its Roads Through 2025
Mercedes-Benz: Driving into the Future
Mercedes-Benz has made significant strides in automotive AI, unveiling a new virtual assistant at the Consumer Electronics Show (CES) in 2024. This advanced AI assistant is not just a tool but a personalized companion that engages in context-based conversations, provides intelligent suggestions, and communicates with varied emotional tones. It represents a leap forward in making the driving experience more interactive and tailored to individual preferences.
Markus Schäfer, Mercedes-Benz’s Chief Technology Officer, highlighted the importance of this development, emphasizing that the new assistant acts as an interactive dialogue partner. This feature will be incorporated into several upcoming models, including the new concept CLA class, an electric vehicle showcased at the trade fair.
The company has also introduced innovative voice assistant technology, including response plausibility checks. This feature ensures that the information provided is accurate, reliable, and verified through cloud data and user feedback. This commitment to accuracy and reliability underlines Mercedes-Benz’s dedication to enhancing the trustworthiness and effectiveness of in-car technology, making the driving experience more secure and dependable.
Mercedes-Benz’s new virtual assistant also boasts the ability to perform plausibility checks for its responses, ensuring the accuracy of the information provided. This feature is crucial for validating real-time data, such as the operational status of recommended destinations. Schäfer emphasized Mercedes-Benz’s commitment to delivering reliable and trustworthy information, underscoring the significance of these technological advancements in enhancing the driving experience.
Audi’s AI: Shaping the Future of Production
Audi remains a trailblazer in automotive innovation and is renowned for its cutting-edge technology and exceptional performance. The brand is celebrated for its meticulous engineering and luxurious design, seamlessly incorporating advanced tech solutions into its vehicles. Although recent announcements haven’t spotlighted specific AI advancements, Audi continues to lead the industry, persistently pushing the limits of performance and technological progress.
The company is pioneering the use of artificial intelligence (AI) in automotive production, becoming one of the first manufacturers to integrate this technology into the factory floor. The company’s experts, Rüdiger Eck, Head of Data & Analytics Factory and Stefan Keckl, Head of Data Analytics, steadfastly highlight how AI is transforming Audi’s production processes and why human involvement remains crucial, as the company implemented AI in two critical areas of its production:
- Body Construction: At the Neckarsulm site, AI monitors spot weld quality using data from welding machines, reducing the need for manual inspections.
- Press Shop: In Ingolstadt, AI checks images of pressed parts for cracks. It assists operators by flagging potential issues. Future developments include utilizing AI to make autonomous decisions.
Despite AI’s growing role, Eck and Keckl emphasize that humans are indispensable. Tasks requiring complex cognitive and sensory skills, like assembly work, are less likely to be fully automated. AI excels at handling repetitive tasks and analyzing large datasets, complementing rather than replacing human capabilities.
Looking ahead, Audi plans to implement AI to:
- Improve Product Quality: By sending alerts detailing potential errors.
- Reduce Errors: By automating repetitive tasks.
- Optimize Processes: By uncovering insights and correlations.
- Enhance Performance: By boosting machine and process efficiency.
Currently, Audi has around 60 data experts working on AI integration and focusing on machine learning and data science.
Eck and Keckl assert that AI’s potential lies in assisting humans, similar to how driver assistance systems enhance safety. Audi’s goal is to become a data-driven company, leveraging AI to support and improve human decision-making in production.
Also Read: How the Metaverse Could Drive Growth and Competitiveness in Germany
BMW and it’s Futuristic Approach
BMW is synonymous with engineering excellence and is equally committed to integrating advanced technology into its vehicles. The brand’s approach to AI includes sophisticated driver assistance systems and infotainment enhancements, ensuring their cars remain at the cutting edge of technology. Although not the focal point of recent CES announcements, BMW’s ongoing advancements reflect a dedication to combining high performance with intelligent, user-friendly technology.
Recently, the German company made headlines with a bold innovation at its Spartanburg plant in South Carolina. Humanoid robots are set to transform automotive manufacturing. Partnering with Figure AI, a startup founded in 2022, BMW is introducing these advanced robots to enhance production efficiency and safety.
The humanoid robots developed by Figure AI are 5’6″ (1.67m) tall, weigh 60kg, and can handle payloads of nearly 20 kg. Designed to complement human workers, these robots are set to substantially impact the production of models such as the X3, X5, X6, X7, and XM. This marks Figure AI’s first commercial deal, showcasing its rapid progress and technological prowess.
Figure AI plans to implement a phased rollout of the robots, starting with a limited number to gauge performance. CEO, Brett Adcock, is optimistic, highlighting the robots’ safety features and the importance of the partnership with BMW as a significant endorsement.
The integration of humanoid robots at BMW’s Spartanburg plant holds the potential to significantly enhance manufacturing efficiency. While it also poses risks, such as potential complications leading to recalls, the industry is eagerly awaiting the outcome and is hopeful for a future of enhanced efficiency and safety in automotive manufacturing.
BMW’s move echoes Honda’s Asimo journey, which, despite its advanced design, did not see widespread industrial use. BMW, already known for its robotic innovations, including the Smart Transport Robot (STR), continues to lead in integrating advanced technologies into its manufacturing processes.
The drive toward autonomous vehicles is the most prominent example of AI’s impact on the automotive industry. German car manufacturers are leading the way in creating advanced driver-assistance systems and fully autonomous vehicles. Essential technologies like computer vision, sensor fusion, and machine learning are crucial for developing cars that can safely and effectively handle intricate traffic situations.
Industry Insights: Germany’s IoT Market on Track to Reach USD 47.87 Billion in Revenue by 2024
Key Developments in Volkswagen’s AI Strategy
- AI Lab Establishment and Innovations
At the beginning of the year, Volkswagen launched its own AI lab, describing it as a “globally networked competence center and incubator” for automotive innovations. This lab aims to produce proofs of concept in AI, focusing on optimizing electric vehicle charging, predictive maintenance, and integrating vehicles with smart home technologies. The strategic move aligns VW with other technology-driven companies like Microsoft and Google, which have established AI research units.
In a press release, Oliver Blume, CEO of the Volkswagen Group and Porsche AG, stated, “We want to offer our customers genuine added value with artificial intelligence,” adding that the company aims to “link external digital ecosystems with the vehicle, creating an even better product experience.”
The AI lab facilitates VW’s efforts to make its vehicles smarter by exploring advancements such as AI-powered voice recognition and improved vehicle-to-customer connectivity. This initiative also signals VW’s intention to reduce its reliance on external AI technologies, thus, fostering greater independence and innovation.
- Operational Advancements and Product Innovation
VW’s AI implementations play a key role in enhancing product performance and sustainability. For instance, the design of truss structures in electric vehicle batteries, which incorporates pyramidal structures to embed AI-soaked materials like steel, has led to a reduction in battery weights. This innovation not only extends the range of cars but also underscores VW’s dedication to advancing automotive engineering through the integration of AI.
Furthermore, integrating advanced AI technologies in VW cars has revolutionized car protection and connectivity. These new methods protect the vehicle and enhance its connectivity with external devices, significantly improving the user experience.
- Financial and Efficiency Gains
The VW Industrial Cloud, built on Amazon Web Services (AWS), is expected to drive a 30% increase in productivity and a similar decrease in factory costs. This integration aims to save VW EUR 1 billion in supply chain costs, reflecting AI’s role in operational efficiency and financial optimization.
During his time as Volkswagen Group CIO, Dr. Martin Hofmann emphasized several vital reasons for choosing AWS (Amazon Web Services) for Volkswagen Group’s needs, “We chose AWS not only because of technology but because of the ability to scale, to provide us with standards for our factories; the implementation speed that we are getting from AWS methodologies, the flexibility, and the culture is helping us to accelerate this project.”
VW’s AI-powered energy management solutions, especially in compressed air control systems, underscore the company’s commitment to sustainability. These innovations are designed to cut operational costs and minimize environmental impact, reflecting VW’s dedication to aligning with broader eco-friendly objectives.
- ChatGPT Integration
Volkswagen’s recent announcement at CES 2024 in Las Vegas has made headlines, revealing an ambitious AI initiative. The company is integrating ChatGPT technology into its vehicles, marking a significant advancement in automotive AI applications. This integration, powered by Cerence Chat Pro, will be available across several models, including the ID.7, ID.4, ID.5, ID.3, the new Tiguan, Passat, and Golf, starting in the second quarter of 2024.
The new feature enables Volkswagen drivers to access an extensive AI database, enhancing the IDA voice assistant’s capabilities. This integration will allow more intuitive voice control over infotainment, navigation, and climate systems while also answering a broad range of queries. The integration promises to make the driving experience more interactive and user-friendly, with seamless activation through simple voice commands or steering wheel buttons. ChatGPT will handle queries securely without accessing personal vehicle data, ensuring privacy and smooth functionality.
Volkswagen’s move to standardize ChatGPT across its vehicle lineup demonstrates its commitment to democratizing advanced technology and improving user experiences. This initiative reflects Volkswagen’s strategic approach to innovation and technology and its effort to reduce dependence on external tech giants.
Volkswagen released a press release in June this year stating that ChatGPT is now available in a range of Volkswagen models.
Volkswagen customers with an existing VW Connect or VW Connect Plus account can continue to use the IDA voice assistant as usual without needing extra access or a separate app. Users can activate the digital assistant by saying “Hello IDA” or pressing a steering wheel button. If a query exceeds the capabilities of the Volkswagen system, it is anonymously forwards the query to ChatGPT, with the response delivered in the familiar Volkswagen voice. ChatGPT cannot access vehicle data, and all questions and answers are promptly deleted to ensure top-notch data protection. Users can deactivate the online voice assistant through the settings in the Volkswagen app or the privacy settings in the infotainment system.
- Cooperation with Deutsche Telekom
Deutsche Telekom supports the publicly funded “AutoLog” project at the port of Emden with cutting-edge 5G technology and edge computing to automate and enhance workflows at automotive terminals. In partnership with Volkswagen Group Logistics, BIBA (the Bremen Institute for Production and Logistics), and software expert, Unikie, the project aims to develop new storage and logistics solutions using automated driving.
The Emden plant, a vital part of Volkswagen’s logistics network, handles over one million vehicles annually. However, as vehicle shipments increase, terminal operators are grappling with challenges such as limited space and a shortage of skilled workers. The ‘AutoLog’ project, in response to these pressing issues, is testing automated driving technologies to enhance efficiency, safety, and sustainability in vehicle handling.
Key innovations include deploying a 5G network for real-time vehicle communication and Light Detection and Ranging (LiDAR) sensors to create a digital twin of the logistics area to control automated processes precisely. Deutsche Telekom’s edge data center ensures fast, secure data processing on-site, while Unikie’s marshaling system facilitates automated vehicle movements.
The ‘AutoLog’ project, which aims to boost terminal efficiency by 20%, cut shuttle transportation, and reduce CO2 emissions by up to 25%, promises to substantially impact the automotive industry. With a budget of EUR 5.8 million and a three-year timeline, this project, funded by the Federal Ministry of Digital and Transport and overseen by TÜV Rheinland, is expected to pave the way for future research and will be standardized in other terminals.
Read More: Deutsche Telekom Drives AutoLog Project at Emden Port with 5G Tech
The Road Ahead
German automotive brands like BMW, Mercedes-Benz, Audi, and Volkswagen have long been celebrated for their exceptional engineering, performance, and luxury. Their vehicles are renowned for high performance on the Autobahn, luxurious detailing, and meticulous component assembly—hallmarks of German automotive excellence.
The focus on advanced software and AI innovations becomes even more crucial as the industry shifts towards electric vehicles with simpler hardware. German automakers are leading this transformation, using AI to enhance vehicle functionality, safety, and user experience. Volkswagen’s and Mercedes-Benz’s recent advancements in AI technology exemplify this trend, setting new benchmarks for the automotive industry.
While Volkswagen remains a crucial player, AI’s impact goes beyond individual companies, transforming the entire industry. This shift is paving the way for more intelligent, efficient, and innovative vehicles, ensuring AI will play a crucial role in the future of automotive development; ultimately, AI is set to power the road ahead.
