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Strategic Intelligence: Artificial Intelligence in Automotive

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    Report

  • 38 Pages
  • October 2025
  • Region: Global
  • GlobalData
  • ID: 6190033
AI is transforming all parts of the automotive value chain. From predicting maintenance needs and streamlining supply chains to optimizing manufacturing processes and enhancing the in-car user experience, AI enables fundamental shifts in how vehicles are designed, built, and operated.

The report covers how AI overcomes key challenges in the automotive industry. These include automotive design, ESG regulations, customer engagement, cybersecurity, autonomous driving.

AI is transforming the automotive industry

Artificial intelligence (AI) refers to software-based systems that use data inputs to make decisions on their own. According to the analyst forecasts, the total AI market, including software, hardware, and services, will be worth $641.8 billion in 2029, having grown at a compound annual growth rate (CAGR) of 37.4% from $131.3 billion in 2024.
AI is transforming all parts of the automotive value chain. From predicting maintenance needs and streamlining supply chains to optimizing manufacturing processes and enhancing the in-car user experience, AI enables fundamental shifts in how vehicles are designed, built, and operated.

Generative AI is accelerating automotive design

Automotive design has never been more complex. On top of traditional concerns like aesthetics and safety, designers must now integrate physical and digital systems for electric vehicles (EVs) and autonomous driving. Generative AI (GenAI) can produce thousands of design iterations - from individual components to complete vehicles - based on specified inputs and constraints, like weight and aerodynamics. Some tools even work from simple prompts, such as “sleek” and “SUV-like.” GenAI can also simulate real-world performance, enabling teams to shortlist and validate the best performers before moving on to physical prototyping. However, these tools are only as good as the inputs they receive. Automakers should avoid rushing ahead without first agreeing on core design criteria.

Unlocking customer engagement with AI

The consumer market for vehicles is incredibly saturated. Automakers and dealerships must find new ways of differentiating themselves to customers through greater personalization. Automakers such as Volkswagen and Tesla have incorporated GenAI models into infotainment systems, giving their vehicles new capabilities such as auto-adjusting climate control, conversational voice assistance, and smarter navigation. In after-sales, AI-based telematics and analytics can predict maintenance, auto-schedule appointments, and reserve parts. Automakers can greatly improve customer perceptions of quality and strengthen their reputation by reducing the chance of unplanned breakdowns or emergency repairs to vehicles.

Report Scope

  • This report provides an overview of AI and how it will impact the automotive industry.
  • The report predicts how AI in automotive will evolve, including the key challenges it will solve.
  • It includes selected case studies highlighting who is innovating in automotive using AI technologies.
  • The report also includes a comprehensive data analysis, including market size and growth forecasts for the AI market.

Reasons to Buy

  • The analyst’s thematic research ecosystem is a single, integrated global research platform that provides an easy-to-use framework for tracking all themes across all companies in all sectors.
  • This report is essential for senior executives at minining companies to understand the critical benefits from integrating AI technology into their operations. Automotive companies who fail to implement AI solutions will fall behind.
  • In addition, the report identifies the leading AI adopters in automotive, as well as specialist tech vendors in this space.

Table of Contents

  • Executive Summary
  • Players
  • Value Chain
  • The Impact of AI on Automotive
  • Case Studies
  • Companies
  • Sector Scorecard
  • Glossary
  • Further Reading
  • Thematic Research Methodology
  • Report Authors
  • About the Analyst
  • Contact the Publisher
List of Tables
Table 1 p10: Core design challenges, design tasks, design constraints
Table 2 p13-14: AI assistant integration by automotive brands
Table 3 page 20-23: Leading AI adopters in automotive
Table 4 page 24-26: Specialist AI vendors in automotive
Table 5 page 31-33: Glossary
Table 6 page 34: Further reading

List of Figures
Figure 1 p4: Players Graphic
Figure 2 p5: AI value chain
Figure 3 p6: There are five categories of advanced AI capabilities
Figure 4 p7: Thematic investment matrix
Figure 5 p8: Electrification is a leading focus of automotive AI integration, followed by autonomous driving