Automotive industry witnesses Progressive AI implementations

Executive Opinion

Markus Winkler, Executive Vice President, Global Head of Automotive at Capgemini said, "These findings show that the progress of AI in the automotive industry has hit a speedbump. Some companies are enjoying considerable success, but others have struggled to focus on the most effective use cases, vehicle manufacturers need to start seeing AI not as a standalone opportunity, but as a strategic capability required to shape the future which they must organize investment, talent and governance around."

Head of the AI & Robotics Labs at Continental, Demetrio Aiello, said, "With AI-empowered visual inspection we have sensibly reduced the ratio of false positives with respect to the previous systems. I am very confident that if we can deploy AI to its fullest potential it would have an impact on performance equivalent to almost doubling our capacity today."

Report Findings on AI projects in the Auto sector

1. As compared to the year 2017, scaled AI project implementation growth has slowed down from 7% to 10% and companies piloting scaled AI projects are also down to 26% from 46%.
2. Scaled AI has the ability to deliver an increase in operating profit ranging from 5% (or $232m) based on conservative estimates, to 16% (or $764m) in an optimistic scenario.
3. The AI project implementations in the automotive sector are delivering a 16% increase in productivity across Research and Development (R&D). At the same time, there is a 15% improvement in operational efficiency in the supply chain and 16% improvement in manufacturing/operations.
4. The survey also found that scaled AI projects have resulted in the reduction in direct costs of 14% in customer experience and 17% in IT, and reduced time to market by 15% in R&D and 13% in marketing/sales.
5. Region-wise 25% of US firms delivering AI at scale while 9% of Chinese firms are delivering on AI projects. Only 2% of Indian firms, 5% of Italian Firms and 8% of firms in France are delivering on scaled AI projects.
6. All executives who were surveyed as a part of this report said that AI is creating new job roles, and there is an increase of 84% as compared to the year 2017.