AI in auto sector: The robot is here to stay, but your jobs are still safe
In the 2005 film Batman Begins, when Batman used an advanced computer system to remotely control his Batmobile—called Tumbler—and even interacted with it using a voice-activated command system, it was an unmissable piece of sci-fi. In 2023, it’s not. Fine, you might not have machine guns and anti-gravity modes on your vehicle (yet), but artificial intelligence (AI)-based features like autonomous driving technology and voice-activated virtual assistants make you no less than Batman.
Today, AI is being used in cars in a number of ways to improve performance, safety, and overall driving experience, be it AI-powered systems such as Tesla’s Autopilot and Cadillac’s Super Cruise that are capable of controlling a car’s acceleration, braking, and steering without the need for human intervention, or be it driver monitoring systems like advanced driver-assistance systems (ADAS) that can monitor driver behaviour and detect signs of fatigue or distraction, alerting the driver or even taking control of the vehicle, if necessary.
Carmakers in India, such as Mercedes-Benz India, have already woken up to some of these advancements. “In our cars, features such as ‘Hey Mercedes’ (our voice assist), Active Braking Assist and gesture controls are getting intelligent as we leverage and integrate technology,” says Santosh Iyer, MD & CEO of Mercedes-Benz India. From a customer service standpoint, consent to opt for ‘Telediagnosis’ on its Mercedes me app allows the company’s service team to monitor a car’s condition and perform a quick remote diagnosis to save time for customers. In addition, the company has integrated AI in production, where it has a combination of smart manufacturing processes, connected systems and human skills.
Experts believe that the current use cases of AI in automotive go beyond just the car itself, and have the potential to transform the supply chain, sales and even the manufacturing process itself. Companies that have technology at their core will emerge as clear winners. “There’s a clear differentiation being set between automotive companies not by AI but by their corporate culture. And it’s a very old dilemma that exists between technology and businesses, because technology can achieve many things but when the business itself resists disruption, technology alone cannot do much,” says Pedro Pacheco, VP Analyst at Gartner who believes that for the new breed of vehicle manufacturers like Tesla, software comes first. “Because of that, it’s a lot easier for them to redefine business models where they can extract the biggest business benefit from software. And these are the companies that most likely will be in a better position to extract benefits from AI,” he explains.
India’s auto ancillary makers, which have implemented technology in large doses, including Industry 4.0 digital tools, now feel AI will take their business to the next level. “As AI becomes a business opportunity, it will spread fairly quickly, not just as product disruption but as process and manufacturing disruption,” says Sunjay Kapur, Chairman of Sona Comstar and President of Automotive Component Manufacturers Association of India (ACMA). “Machine learning (ML) and AI will enable remote maintenance. It will be used to make processes more efficient, eliminate waste, and cybersecurity will play a huge role in all industries.” Agrees Rajeev Singh, Partner and Consumer Industry Leader, Deloitte, Asia Pacific. “The need for servicing will go down. We’ll move from periodic to predicted servicing,” he says.
Singh says the cost of manpower is increasing at about 10-12 per cent year-on-year, which can be managed through automation and AI: “It’s bound to happen that automation will become less expensive than manpower. There will be a significant shift in the nature of these jobs and number of people employed. And at the same time, new jobs are being created.”
Gartner’s Pacheco, too, feels automotive jobs per se are not in danger from AI. “AI is still not as advanced as it should be. Today, we’re far off from having a ‘lights out’ factory, which is completely automated and doesn’t require humans working on the shop floor or running the factory. In the short term, I would not see AI as a monster that is going to take away automotive jobs,” he says.
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