Self-Learning AI Poised to Disrupt Automotive Industry Giving Rise to New Business Opportunities for OEMs

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Self-learning artificial intelligence (AI) in cars is the key to unlocking the capabilities of autonomous cars and enhancing value to end users through virtual assistance. It offers original equipment manufacturers (OEMs) fresh revenue streams through licensing, partnerships and new mobility services. Simultaneously, the use-case scenarios of self-learning AI in cars are drawing several technology companies, Internet of Things (IoT) companies and mobility service providers to the automotive industry. The technology has also attracted attention and investments from the government due to its potential to elevate lifestyles and add economic value.

 AI Mobility - ThinkStock.jpgFrost & Sullivan’s new, Executive Analysis of Self-learning Artificial Intelligence in Cars, Forecast to 2025, aims to analyze self-learning car technology and its value contribution to the automotive industry.

By 2025, four levels of self-learning technology will disrupt the automotive industry. Level 4 self-learning car ownership will be vital for new mobility companies, stoking partnerships with original equipment manufacturers (OEMs). OEMs are already making strategic investments or acquisitions for Level 3 and Level 4 self-learning technology; there are several prominent startups in the market. 

“Technology companies are expected to be the new Tier I for OEMs for deep-learning technology,” said Frost & Sullivan Intelligent Mobility Research Analyst Sistla Raghuvamsi. “Google and NVIDIA will be key companies within this space, dominating the market by 2025. Meanwhile, 13 OEMs will be investing over $7.0 billion in the development of various AI use cases. Hyundai, Toyota, and GM will account for 53.4% of the total investment share.” 

The challenge for technology developers lies in gathering the data required to train the AI to support self-driving capabilities. This is prompting the development of artificial simulations to run trained AI, as well as the creation of low-cost level 2 systems for driver analytics and assistance that can eventually provide data for levels 3 and 4. 

“High processing capability with low power consumption will be critical to enable various levels of self-learning cars,” noted Raghuvamsi. “By 2025, level 4 self-learning cars will integrate home, work and commercial networks, enhancing the value to end users.” 

Executive Analysis of Self-learning Artificial Intelligence in Cars, Forecast to 2025 is part of the Automotive & Transportation Growth Partnership Service program, which also includes insights on disruptive satellite communication, commercial vehicle telematics, driver monitoring systems, automotive interiors, wearables integration and head-up displays. 

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