The era of the software-defined vehicle (SDV) is evolving. According to BMW’s Stephen Durach at the IAA Mobility Munich event, “In the ice hockey, you have to skate where the album is going, not where it is indeed,” signaling a shift towards AI-driven cars.

BMW, with its extensive experience in connected cars (24 million) and over-the-air (OTA) software updates (10 million+), feels ready to embrace this next technological leap. Durach states that the “SDV is already old,” and the focus is now on “cars driven by artificial intelligence (AI).”

Modern cars are incredibly complex,containing up to 650 million lines of code,far exceeding that of a smartphone. BMW’s systems process approximately 60.6 billion daily applications through more than 1,300 microservices, achieving a 99% reliability rate.

AI Enhancing the driving Experience

AI is expected to personalize and optimize the driving experience by considering contextual elements such as cabin temperature and passenger positioning, potentially automating functions like air conditioning. Jürgen Reers, from Accenture, believes that AI will enable cars to offer a more relevant user experience than smartphones. Google’s Steve Basra, Vice President of Engineering of Android Automotive, suggests that AI can improve current use cases tenfold, citing examples like cameras detecting shopping bags and automatically opening the trunk.

“In the ice hockey, you have to skate where the album is going, not where it is.”

The integration of AI is also transforming the automotive industry’s value chain. New industry players are achieving development cycles of two to three years, substantially faster than conventional manufacturers.

AI Agents and the Automotive Ecosystem

Ozgur Tohumcu, from Amazon Web Services, sees the automotive sector as an ideal environment for AI agents, which can act independently and make their own decisions. Amazon Web Services has already partnered with major automotive brands like Volkswagen,Audi,Mercedes-Benz,and Geely to enhance their smart cabins and improve digital marketing strategies. Google’s astra project aims to create a global multimodal AI agent that allows vehicles to “see what you see and answer questions about the world around you.”

AI is also impacting other areas, such as Formula 1 racing.Andre Bechtold, president of SAP Industries & Experience, explained how AI has helped the Mercedes-Am petronas team improve efficiency and forecast their financial planning in response to the introduction of cost limits in 2021.

According to Steve Basra, technological giants believe that the automotive industry has learned a “very hard lesson” and realized that building the entire computer model of a software-defined car internally is unrealistic. Collaboration is now essential for survival.

While car manufacturers are maintaining independence in areas like user interface design to preserve brand identity,companies like BMW are sharing platforms with Mini and Rolls-Royce to reinforce a unified image.

Hyperpersonalization and the Future of Driving

Future software-defined vehicles will offer hyperpersonalization, adapting to daily tasks with customized settings for different situations, such as a relaxing mode for children or a sporty driving mode. Robert Bosch’s Markus Heyn envisions cars becoming “partners, such as humanoid robots” with advanced perception, recognition, decision-making, and interference capabilities. This will increase the importance of security, as drivers need to trust that their vehicles will act correctly in challenging situations.

While the industry is focused on digital transformation, a message has been sent to Brussels regarding the exclusive focus on electric propulsion technology. Oliver Zipse, president of the BMW Board of Directors, argues that current regulations have “caused the disappearance of the small car industry in Europe, as it makes them too expensive.” roland Busch, president and CEO of Siemens, shares this sentiment.

Mercedes-Benz’s Ola Källenius highlights the “demential” computing power and 27 sensors in modern vehicles. The “conversational navigation,” developed with Google,can explain local traditions and guide drivers to relevant locations. Källenius also emphasizes the importance of maintaining an “emotional connection” with drivers, acknowledging that AI still has progress to make in this area.