How OEMs can leverage AI to improve productivity

The paths of Big Tech and the automotive industry cross. Tata Consultancy Services (TCS) is a company that helps automakers and OEMs navigate and accelerate their journey towards software-defined vehicles (SDV).

Auto Futures caught up with Anupam Singhal, President, Manufacturing, TCS, to discuss SDV, talent shortage in the automotive sector, and the benefits of AI.

“The automotive industry is currently at an inflection point, with OEMs starting to focus on improving their software as much, if not more, than their hardware. The skills needed to accelerate the adoption of new technologies and mobility experiences are very different from what product engineering traditionally means in the automotive sector, says Singhal.

One of the newest offerings is the Auto Gen AI Suite. Helps accelerate SDV design, development, and verification by leveraging large language models (LLM) and visual language models (VLM) for on-board and cloud-based systems.

“With the deep expertise of our more than 4,000 technology engineers, we have helped the world’s leading automotive OEMs and automotive software providers adapt to market trends to develop the next-generation architecture necessary to be at the forefront of SDV development and create a new future for the automotive industry,” explain.

The upcoming SDV era will bring both challenges and opportunities to the automotive sector.

“The SDV era will bring a refreshed way of working, where we will see OEMs bring hyper-personalized products to market faster with minimal disruption, with built-in security, and the industry will increasingly embrace newer revenue streams.”

“This has led to a needed shift in gear: the boundaries that limit innovation are breaking down. For example, we have seen the development of electric vehicle battery passports to improve supply chain transparency – often opaque, battery lifecycle tracking can significantly improve the pre-sale quality of the manufacturing process. We have also seen shorter time-to-market cycles supported by dynamically updated feature sets, enabling OEMs to launch new products faster and deploy new features with minimal disruption,” he adds.

The fight for artificial intelligence

Singhal believes that OEMs should leverage AI to improve productivity. This means using AI to increase time to market for new features and optimize capital expenditure.

“This is particularly helpful in the development of autonomous vehicles (AV) and the race towards SAE Level 5 (the Society of Automotive Engineers’ 5 levels of driving automation from 0, fully manual, to 5, fully autonomous). To create Level 5 AV, manufacturers need to look at the right data – that’s where artificial intelligence comes in. Given that test data takes up petabytes, machine learning models enable automakers to thoroughly test AV algorithms,” he says.

“This is just the tip of the iceberg. “Generation AI will soon enter every part of the automotive supply chain and customer touchpoints as manufacturers look to meet consumers’ desires for cars as a digital product.”

It is estimated that by 2030, the artificial intelligence industry will invest billions of dollars in the automotive industry.

“Ultimately, artificial intelligence must be supported, but how we communicate its applications can change the way we perceive it. Automakers need to understand that technologies like GenAI will enable their traditional workforce to do more with fewer resources, complementing their workforce rather than replacing it. Communicating this properly and helping individuals upskill in the era of AI will not only help allay fears, but also it will help attract the right talent,” says Singhal.

Supporting cross-pollination

There is currently a talent shortage in the automotive industry. However, it may benefit from job insecurity in the technology sector.

“As OEMs shift their focus from “one-time sales” to providing “lifetime” customer service, the automotive industry is missing key talent to ensure customer longevity. It requires talent with coding skills who can create digital mobility experiences such as SDV, autonomous and connected vehicles, multimodal infrastructure and smart city integration,” says Singhal.

“The automotive sector has become the new ‘promised land’ for aspiring data scientists, battery engineers and more. Looking at the job sites of major automakers GM and Ford, we see that there are already over 300 software engineering positions available, ready for Tools like GenAI can help long-time automotive experts transfer knowledge and train recent graduates.”

OEMs can also benefit by doing more to attract Gen Z software developers.

“Gen Z developers are attracted to opportunities where they can quickly make a significant impact and work with the latest technology solutions. For car manufacturers, this means focusing on sustainable vehicles: hybrids, electric vehicles and hydrogen fuel technologies, where they can make a significant difference to the planet,” he explains.

“Car manufacturers must emphasize work culture and work-life balance. This is what attracted software developers to Big Tech. This means providing challenging tasks, convenient work locations and competitive remuneration. We’ve already seen something happen in the U.S. with OEMs expanding their presence in tech hubs and big cities like the Bay Area and Pittsburgh where skills are more readily available.”

Finally, we asked Singhal for his thoughts on what mobility will look like by the end of the decade.

“By 2030, mobility will focus on tailored customer experiences and ecosystems across non-automotive industries such as retail and entertainment. In practice, this means that vehicles must have constant connectivity, dynamic user interface and UX, upgradability and modularity,” he added. predicts.

“The future of mobility will also be sustainable. Electric vehicles currently account for 7% of American car sales – a number that is expected to double to 15% by 2030. The US goal is for half of all vehicles sold to be a zero-emission vehicle within the same year time frame, and Europe’s goals are even higher. These goals will undoubtedly shape the future of carmakers’ priorities, and we will also see more hydrogen fuel cell vehicles on the road.

“Ultimately, the OEM role will be at the epicenter of the mobility ecosystem. To achieve this, OEMs must create an environment that encourages the cross-pollination of ideas from different industries, and flexibility beyond a rigid organizational structure will be key, concludes Singhal.