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Generative AI will Drive Softwarization of Automobiles
Generative AI will Drive Softwarization of Automobiles

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The next big challenge for automobile manufacturers is softwarization: using a software solution, rather than hardware, to solve a problem. And it’s coming fast. This requires a fundamental shift in how manufacturers think about themselves. These hardware-centric companies may find it hard to imagine becoming a computer or an AI company. But, as the auto industry moves closer to making smart devices with wheels, they must.

Globally, auto makers are already investing billions in AI, and that number is expected to grow. Currently, AI is routinely used in product design and planning, warranty management, building long-term customer relationships, and more. The next frontier is Generative AI, to create code, digital content, simulations, and more. As the automotive industry progresses towards smart devices with wheels, manufacturers must embrace tools to quickly develop, deploy and maintain software — and that’s exactly the power that Generative AI brings to the table. 

Why manufacturers must embrace Generative AI

Traditional manufacturers face two competitive pressures: Tesla and China. Tesla is a software company that makes cars. They leverage AI at fleet-scale to develop new innovations faster. They recently announced a state-of-the-art generative modeling technique, enabling them to predict possible outcomes given past observations. That’s the big promise of Generative AI: to relieve the code department chokehold on innovation, making it radically easier to turn an idea into a software feature. 

As for China, they are keenly aware of Generative AI’s potential to drive powerful efficiencies in softwarization. They have the technology base and engineering talent to translate that potential into reality. Affordability in vehicles always matters, and softwarization will be key to delivering value at the time of purchase — and increasing the residual value as the vehicle ages. 

What can automotive manufacturers do to catch up?

Automobile manufacturers need to produce and deliver vehicles with larger computing. This would enable them to operate a software sandbox in every vehicle using it to analyze the performance of their software against the baseline use. It would enable testing new functions in the real world, on a limited set of vehicles.  

Manufacturers could boost their ability to experiment with new ideas, while gathering invaluable data about how the new software features work, in real vehicles with real drivers. This translates to turning new features around faster, with failure becoming less of a risk.  

With a more robust computing environment and Generative AI, they could enable vehicles that analyze driving behavior and personalize and optimize the driving experience for different drivers. 

Generative AI is Here, Don’t Get Left Behind

As the automotive industry races toward its future, software and connectivity are redefining the next generation driving experience. This transition challenges traditional manufacturers whose hardware-focused culture doesn’t align with the needs of a software-centric world. Today, the software engineering department at most auto makers is chronically oversubscribed and under resourced. This is a challenge, but for forward-thinking auto makers it’s also an opportunity. 

The time for Generative AI in automotive is here.

About the Author

Thomas Mueller, CTO, Wipro Engineering Edge

Thomas is Chief Technology Officer of Wipro Engineering Edge and has more 30 years of experience across the automotive, cloud, and financial sectors. He is currently responsible for Wipro’s automotive engineering and innovation services, which encompasses everything from software-defined vehicles and autonomous driving to 5G and cloud-native engineering.


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