German carmaker Volkswagen is planning to streamline production and cut costs by investing up to €1 billion ($1.175 billion) in artificial intelligence by 2030, the firm said at a major auto show in Munich on Tuesday.
Current budget plans are to include investment in “AI-driven vehicle development, industrial applications and high-performance IT infrastructure,” the Wolfsburg-based company said at the IAA Mobility show.
“With artificial intelligence, we are igniting the next stage on our path to becoming the global automotive tech driver,” said Hauke Stars, board member for IT at the Volkswagen Group. “AI is our key to greater speed, quality, and competitiveness – across the entire value chain, from vehicle development to production.”
Stars expects the investments to pay off within 10 years, forecasting “efficiency gains and cost avoidance opportunities” of up to €4 billion by 2035.
“Our ambition is to accelerate our development of attractive, innovative vehicles and bring them to our customers faster than ever before,” she said. “To achieve this, we deploy AI with purpose: scalable, responsible, and with clear industrial benefits. Our ambition: No process without AI.”
When it comes to vehicle development, Volkswagen is working with French software specialist Dassault Systèmes to set up an AI-supported development environment that will be used across all of the group’s brands and in all regions.
Virtual tests and simulations will support engineers and accelerate development, with the firm hoping to shorten the product development process to 36 months or less, streamlining it by at least around one year compared to today.
Source: dpa
Source: ghanabusinessnews.com
