Volkswagen Sets Up Its Own AI Lab as Car Industry Looks to Embrace the Tech

German automaker Volkswagen has made a significant stride in the Artificial Intelligence industry by unveiling its dedicated AI lab in a press release on Wednesday, January 31. The establishment of this lab signals their commitment to harnessing the potential of AI technology, aligning with the broader trend within the automotive industry.

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Setting the Stage with a Global AI Hub

The company’s new AI lab will be a “Globally networked competence centre and incubator” that will generate proof of concept for technological advancements in the automotive sector. This move mirrors the strategies of tech giants such as OpenAI and Google’s DeepMind, known for their AI-focused research and development hubs.

The company envisions the AI lab as a pivotal element in driving innovation. Volkswagen aims to foster collaboration with internal and external partners by establishing a central hub for AI research. This initiative reflects an industry shift toward adopting artificial intelligence breakthroughs, as revealed by major players like OpenAI and Google.

Volkswagen sets up its own AI lab as car industry looks to embrace the tech https://t.co/tLJJvtdQET

— CNBC (@CNBC) January 31, 2024

Integration of AI Innovations into Vehicles

The company plans to leverage the outcomes of its AI lab to enhance the intelligence of its vehicles. Oliver Blume, CEO of the Volkswagen Group and Porsche AG, expressed the company’s commitment to providing customers with genuine added value through AI. He emphasised the intention to collaborate with technology companies to create improved product experiences by linking external digital ecosystems with vehicles.

The company acknowledges the significance of external partnerships in achieving its goal. Volkswagen does not plan to manufacture production models directly; it intends to licence its proprietary AI technology to potential partners. The company has yet to disclose specific collaborators, and enthusiasts believe this will leave room for future strategic discussions.

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Focus Areas for AI Solutions

The AI lab will explore various solutions in order to address critical areas like optimising electric vehicle charging, predictive car maintenance, and establishing connectivity between vehicles and customers’ homes through internet-connected devices. Furthermore, Volkswagen aims to explore the application of AI in in-car voice recognition, aligning with the growing trend of improving user interfaces in the automotive industry.

Volkswagen’s focus on electric vehicle charging optimisation is particularly noteworthy, considering the global shift towards sustainable and eco-friendly transportation. The integration of AI in predictive maintenance showcases the company’s commitment to ensuring the longevity and efficiency of their vehicles for a better ownership experience.

Industry Trends and Competition

Volkswagen’s adoption of AI is part of an industry trend where automakers heavily invest in AI to enhance technological capabilities and make vehicles smarter. Key players like Chinese electric vehicle giant BYD, DS automobiles, Mercedes-Benz, and Microsoft have already embarked on integrating AI technologies into their cars.

Volkswagen’s move to establish its AI lab may help the automaker reduce dependence on external AI software from tech giants like Amazon, Apple, Google, and Microsoft.

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Volkswagen’s AI Lab: Shaping an Independent Future

Volkswagen is taking steps towards independent AI adoption by establishing an AI lab. While the automaker collaborates with OpenAI for specific initiatives, having its own AI lab gives Volkswagen the autonomy to explore and develop proprietary technologies. The AI Lab will be a “Slim and powerful” operational unit, with a team of AI experts collaborating with individual brands under the Volkswagen umbrella. The lab’s supervisory board also intends to involve representatives from different brands.

The promise of a streamlined operational approach for its AI lab highlights Volkswagen’s commitment to agility. Michael Steiner, Head of Research and Development, underlines the group’s openness to external collaboration, irrespective of existing arrangements. This approach reflects a willingness to foster innovation through diverse partnerships in series production.

With a global AI hub, Volkswagen can promise a more innovative and connected future for its vehicles and the industry.

Meanwhile, you can also read more on the role of Artificial Intelligence in the Automotive industry here.