Source: Gasgoo Author: Song Mingxuan
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German automaker Volkswagen said on Jan. 31 that it has established its own artificial intelligence lab, a move that reflects the auto industry’s growing ambition to adopt cutting-edge technologies.
In a press release, Volkswagen said the new AI lab will serve as a “globally networked competence center and incubator” dedicated to proof-of-concept in the field of innovative automotive technologies.
The AI Lab will serve as a research and development center focused on exploring the latest breakthroughs in artificial intelligence. This follows Microsoft’s (Microsoft) support for the establishment of OpenAI Labs and Google’s (Google) acquisition of DeepMind Labs in 2014.
Volkswagen has promised to apply the lab’s AI innovations to its cars to enhance vehicle intelligence. Oliver Blume, CEO of the Volkswagen Group and Porsche, said, “We want to provide our customers with real added value through AI, tightly integrating external digital ecosystems with the car to create an even better product experience.”
He added, “Partnerships with technology companies are crucial for us. In the future, we intend to simplify collaboration in terms of organization and culture.”
The AI solutions that will be investigated at the lab will include optimizing electric vehicle charging, predictive maintenance of vehicles, and smart interconnections between vehicles and homes through internet-connected devices. In addition, Volkswagen will explore the use of AI for in-vehicle voice recognition.
While Volkswagen does not intend to produce any AI production models on its own, the company intends to explore the possibility of licensing proprietary AI technology for use in other vehicles with partners yet to be announced.
Image source: Volkswagen
The announcement comes as other automotive companies are also making a big push into AI to boost their technological prowess and make their cars smarter.
France’s DS Automobiles began integrating ChatGPT in its cars late last year, Mercedes-Benz and Microsoft began testing in-vehicle ChatGPT support as early as June 2023, and BYD has introduced an AI-powered smart car system to better compete with its rivals in advanced technologies such as self-parking.
Volkswagen has expanded its work on AI, recently announcing plans to integrate ChatGPT technology in its vehicles at the Consumer Electronics Show in Las Vegas. Volkswagen chose to partner with OpenAI to capitalize on its technological prowess rather than relying exclusively on its own proprietary technology.
With the establishment of an AI lab, Volkswagen will be able to decide on its own the direction of AI technology it will adopt in the future. Nonetheless, Volkswagen still has challenges to leap over to compete with labs like OpenAI that already have advanced research capabilities.According to the VDA, sales of electric cars in Germany fell by 16 % in 2023 and are expected to fall by a further 9 % by 2024. Of these, sales of plug-in hybrids will grow from 176,000 to 185,000 units. However, production of electric cars in Germany is expected to grow by 19 % this year to 1.45 million units, most of which will be exported.
Germany is Europe’s largest auto market and has been one of the main drivers of EV popularity, but inflation, high car prices and inadequate charging infrastructure are curbing market demand for electric vehicless, leading many manufacturers to delay the launch of new EV models and leasing companies to reduce purchases of electric vehicless. Groupe Renault this week abandoned plans for a public listing of its electric car business due to slowing market demand and the brutal nature of the initial public offering (IPO) market.
