6 Ways AI is Reshaping the Future of Automotive Production

In the 20th century, the automotive industry was at the heart of a notable industrial revolution. However, back then, the adoption of AI was limited due to manual processes and a scarcity of data. Fast forward to the past decade, and the landscape has dramatically shifted. AI’s potential for automotive original equipment manufacturers (OEMs) and suppliers has surged into prominence. While much attention is given to connected and autonomous cars, AI’s impact on production optimisation and manufacturing processes is equally profound. 

Researchers have delved into specific AI models and methods, tackling issues in production, quality control, and assembly. Among these, machine learning techniques, particularly neural networks, reign supreme in both research and practical applications. Real-world examples abound, from quality inspection to robot assembly, human-robot collaboration, and AI-driven decision-making in manufacturing. 

Today, AI continues its transformative journey within the automotive industry. From industrial robots bustling on factory floors to the advent of self-driving vehicles, AI is boosting efficiency, safety, and overall customer experience. Leading players such as Mercedes-Benz, Toyota, Volkswagen, Tesla, and Volvo are actively embracing AI technologies to fuel innovation and drive the industry forward. 

6 Ways AI is Redefining Automotive Production 

Among the foremost areas where AI is creating an impact is in manufacturing optimisation. AI algorithms consider factors such as machine availability and workforce efficiency and excel at tasks like production planning, scheduling, and resource allocation. Predictive maintenance, powered by AI, is able to prevent costly breakdowns by identifying potential issues before they escalate. Quality control is able to reap significant benefits from AI-driven image recognition systems that detect defects in real time, ensuring consistent product quality. For instance, automated image recognition on assembly lines compares real-time component images to a database of standard ones, instantly flagging deviations and ensuring improved quality, consistency, safety, and comfort in driving experiences. 

Automotives have a strong inclination towards AI adoption, with reports suggesting that nearly 75% of companies currently experimenting with AI applications. BMW Group, for example, has invested extensively in AI implementation, particularly in automated image recognition. The global market for AI in manufacturing is also burgeoning, projected to reach USD 9.89 billion by 2027, driven by increased automation, predictive maintenance, and quality control. 

The second segment where AI has made an impact is in demand forecasting and inventory management. By analysing vast amounts of data, including market trends and consumer behavior, AI algorithms accurately predict future demand for specific vehicle models and components. This enables manufacturers to optimise production schedules, adjusting output based on anticipated demand and thereby reducing excess inventory, cutting storage costs, and avoiding overproduction. Moreover, AI facilitates efficient communication with suppliers through natural language processing (NLP) algorithms, which automate routine tasks such as order placement and status updates. This results in faster response times, reduced manual workload for employees, and improved collaboration with suppliers. Recent statistics highlight the impact of AI-enabled supply chain management, with logistics costs improving by 15%, inventory levels decreasing by 35%, and service levels enhancing by 65% compared to competitors. The global market for AI applications in manufacturing, including supply chain management, is projected to experience substantial growth from USD 2.9 billion in 2021 to over USD 78 billion by 2030. 

A Merit expert says, “Incorporating AI into automotive production isn’t just about embracing technology; it’s about redefining the way we create, innovate, and deliver value to customers in the ever-evolving automotive landscape.” 

AI is transforming product customisation by offering a plethora of options for buyers to personalise their vehicles. AI algorithms analyse customer preferences and market trends to recommend color choices and interior features tailored to individual tastes. Generative design algorithms are taking vehicle design to new heights by generating thousands of design variations, optimising performance, aesthetics, and practicality. This process accelerates design, fosters innovation, and promotes sustainability by reducing material waste. Some examples include lightweight components for electric vehicles and intricate lattice structures that maintain strength while minimising weight. 

In modern vehicles, AI enhances the driver experience through intuitive infotainment systems and advanced driver-assistance features. AI-driven infotainment systems offer personalised recommendations for entertainment and connectivity, including voice-controlled commands for hands-free operation, ensuring safer driving. Driver-assistance features such as adaptive cruise control, lane-keeping assist, and collision avoidance rely on AI to adjust to traffic conditions and prevent accidents. Machine learning algorithms continually adapt to driver behavior, providing personalised recommendations and enhancing overall satisfaction by anticipating individual needs and preferences, ultimately making driving more convenient, enjoyable, and safe. 

AI-powered process automation is revolutionising operations through Robotic Process Automation (RPA) and collaborative robots (cobots). RPA involves software bots performing repetitive tasks like data entry, invoice processing, and quality checks, boosting efficiency, accuracy, and cost savings. Cobots work alongside human workers, sharing workspace and enhancing productivity and safety. They assist in assembly, quality inspection, welding, and ergonomic support, augmenting human skills and reducing strain. Market trends indicate significant growth in both RPA and cobots, with the global RPA market expected to reach USD 3.97 billion by 2027 and the cobot market projected to grow at a CAGR of 42.8% from 2021 to 2028, reflecting their importance in automotive production. 

What can we expect in the future? 

Looking ahead, several trends will shape the future of AI in automotive production. First, AI will drive the transition to autonomous manufacturing, where robotic systems guided by AI will handle tasks like assembly and welding. Additionally, AI algorithms will enable self-optimising production lines, adjusting parameters in real time for optimal efficiency and quality. Predictive maintenance, powered by AI, will become more widespread, reducing downtime by proactively monitoring equipment health and predicting failures. 

Furthermore, AI will enhance supply chain resilience by predicting disruptions and optimising inventory levels. Real-time visibility into inventory and logistics will be provided through AI-driven supply chain platforms. In terms of sustainability, AI will optimise energy consumption and enable better recycling practices, contributing to a circular economy. 

Human-robot collaboration will increase, with collaborative robots assisting in tasks like quality control. AI algorithms will ensure safe interaction between humans and robots, preventing accidents. Generative design driven by AI will create lightweight vehicle components and optimise EV batteries for efficiency. 

Moreover, AI-powered chatbots and virtual assistants will enhance customer experience by providing personalised assistance and proactive maintenance alerts. Finally, AI will automate regulatory compliance reporting and documentation, streamlining processes for regulatory compliance. 

Merit’s Expertise in Data Aggregation & Harvesting for the Global Automotive Sector 

Merit Data and Technology excels in aggregating and harvesting automotive data using AI, ML, and human expertise. Our capabilities include: 

• Crafting end-to-end data pipelines and scalable data warehouses 
• Designing compliant governance solutions for seamless integration 
• Utilising high-volume, high-velocity data tools for nuanced insights 
• Extracting retail product attributes and audience data 
• Aggregating industry-specific data points for informed decision-making 

Trusted by leading automotive brands, Merit drives innovation and efficiency by delivering refined, actionable insights.

Key Takeaways 

• AI is revolutionising automotive production, optimising processes from manufacturing to supply chain management. 
• Predictive maintenance and quality control benefit from AI-driven solutions, reducing downtime and enhancing product quality. 
• Demand forecasting and inventory management are streamlined with AI, leading to cost savings and improved efficiency. 
• Product customisation is enhanced through AI algorithms, providing personalized options for consumers. 
• AI enhances the driver experience with intuitive infotainment systems and advanced driver-assistance features. 
• Process automation powered by AI, including RPA and cobots, boosts efficiency and safety in automotive production. 
• Future trends include autonomous manufacturing, supply chain resilience, sustainability initiatives, and continued advancements in human-robot collaboration.