AI In Automotive: How It's Impacting The Automotive Industry?

AI In Automotive: How It’s Impacting The Automotive Industry?

The use of AI in the auto business has sped up production and made the user experience better. In this blog, we’ll talk about the future and top uses of AI, as well as how AI is affecting the auto business.

AI in the automotive industry has opened up a lot of new business possibilities and made it possible for entrepreneurs to join this booming industry.

How many of you thought this was true?

Well, the rise of AI in many different fields is a powerful change agent. And the auto business is no different!

With the introduction of artificial intelligence (AI), the auto business is going through a major change. AI is changing how cars are made, used, planned, and kept in good shape. AI is becoming more and more important in the automotive business, from self-driving cars to predictive maintenance. 

AI-tech startups and companies that make cars are taking advantage of AI’s power and investing heavily in this business. You don’t have to take what we say as true. Here are some stats and facts to think about…

Aside from this blog post, we will look at 10 ways that AI is changing the automotive business, including its use cases, benefits, effects, and challenges. So, before we talk about how to hire an AI worker in India, let’s talk about how AI is changing the business world.

Also, app developers play a big part in putting AI into cars, so by the end of this blog, you’ll know how to find the best app developers in India and how much it will cost you in real life.

Let’s start with the most important statistics and facts about the car industry and then decide if putting AI to use in the auto industry is a good idea…

Table of Content

AI in the Auto Industry: Market Statistics and Industry Revenue Growth

Thanks to improvements in AI technology, the automotive business is going through a big change right now. As this technology keeps getting better and cheaper, more and more car companies are starting to add AI to their cars. 

AI in cars: the facts

Image Source:

Applications that use AI are expected to make cars easier to use, safer, and more efficient, while also lowering the costs of repairs and upkeep. Because of this, top car companies like Ford, Volkswagen, BMW, Nissan, Hyundai, and Toyota have put a lot of money into creating AI-based solutions for their cars.

Companies other than carmakers are now getting into the market for vehicle AI. 

Tech giants like Microsoft, Amazon, and Google, for example, have all made products for the auto business that can be built into cars. Some of these are word recognition software and systems that watch the driver.

Aside from that, here are a few things that help AI grow in the car industry:

Overall, the growing desire for cars with artificial intelligence is giving auto companies a new way to make money. By 2027, the AI in Automotive market is expected to be worth $22 billion. This will make it one of the most profitable markets for car businesses. Companies that take advantage of this trend will do very well as it grows.

But what are the advantages of using AI in the auto industry?

The advantages of using artificial intelligence in the auto industry

artificial intelligence in the auto industry

Image Source: BusinessWire

The Automotive Industry and Artificial Intelligence

Source of image: BusinessWire

AI could help the auto business in a lot of different ways.

Here are some of the best things about AI in the car industry that you can take advantage of by hiring an AI developer in India:

  • Improved Safety: Artificial intelligence (AI) can help make cars safer by letting them recognize dangers and act on them in the right way. Autonomous cars that use AI can, for example, spot objects on the road and avoid crashes with other cars.
  • AI can be used to give customers a more personalized driving experience by giving them access to information, entertainment, and other services that are based on their interests. It can also be used to make services faster and more efficient, like route navigation.
  • Smarter Manufacturing: AI can help streamline the production process in the automotive industry by automating jobs that are done over and over again and by helping to find problems quickly. This can make things work better and save money.
  • New Business Models: AI can help the car industry create new business models, such as subscription-based services and shared ownership.
  • Predictive maintenance: Artificial intelligence can be used to figure out when parts need to be fixed or changed, which saves time and money.
  • Connected Cars: By linking cars together through networks, AI can make possible a wide range of services and features, such as better guidance and safer driving.
  • Vehicle Health Diagnostics: AI in the auto business can help figure out what’s wrong with a car quickly and accurately, which cuts down on the time it takes to fix it.
  • Fuel Efficiency: AI can help reduce fuel use, save money, and lower emissions by looking at how people drive.
  • Reducing Emissions: AI can be used to find and cut car emissions, which helps fight climate change.
  • AR/VR for Automotive: By adding augmented reality and virtual reality to cars, AI can give people more immersive experiences and make them safer.

These are a few of the best reasons to use AI in the auto industry, but the main question now is, “What are the best ways AI is changing the auto industry?””

10 of the Best Ways AI is Used in the Automotive Industry

Autonomous driving has been a big deal in the business world for a while, but it won’t be possible without AI. But the truth is that AI has been used in the automotive business for more than just self-driving cars. Automakers and tech companies are in a race to come up with the best AI-driven car solutions.

So, if you want to use AI in the automotive business but don’t know where to start, here are a few ways you can do so by hiring an Indian AI developer.

So let’s start with how AI can be used in the car industry:

1. AI for self-driving cars

Autonomous driving technology is changing the auto business quickly, and Artificial Intelligence (AI) is becoming a more important part of this change. AI for driverless cars is a developing technology that could change the way people get around and how they feel about transportation.

Recent improvements in AI have made it possible for machines to make choices faster than ever before. AI-based technologies like computer vision, deep learning, and machine learning make it possible for driverless cars to detect, recognize, and react to a wide range of external stimuli. This makes it possible for the car to drive safely and successfully without a person behind the wheel. 

Statista says that by 2030, the world market for technology for self-driving cars will be worth $556.67 billion. 

AI in the Car

Statista took the picture.

This growth can be explained by the fact that AI is being used in more and more ways in driverless cars, such as to make them safer, improve navigation, handle traffic, and more. Vehicles with AI can spot possible dangers on the road and take the right steps to avoid them. Also, cars with AI can talk to each other, which makes it easier for them to work together and make better decisions.

2. AI for Making Things Smarter

With AI in the automotive industry, the market is seeing a huge shift from manual to automated production processes. This is thanks to improvements in AI. With AI, companies can improve their production methods and get rid of any inefficiencies. 

One example of AI-driven automation is machine learning-driven vision systems, which are used to check parts and find flaws. Robots that are controlled by AI can also do routine tasks like welding, drilling, and painting. Computer vision systems can be used to place parts correctly and check for quality. 

AI is also used to keep an eye on things like the temperature, humidity, and lighting in a factory. It is also used to study operational data like machine cycle times and maintenance needs. This helps automakers find ways to be more productive, keep better track of quality, and save money.

Statistics show that technology based on AI could cut production costs by up to 20%, saving about $5 trillion a year by 2030. 

The global smart manufacturing market will grow from $249.56 billion in 2019 to $658.41 billion in 2029, according to another market research study.

AI in the Car

Image Source:

Also, AI-powered quality control could cut waste from faulty goods by up to 50%, which would save automakers a lot of money.

By using AI for predictive analytics, automakers can also guess what customers will want and improve logistics in the supply chain to speed up production cycles.

3. AI for Making Smart Cars

Automakers used to design and build cars by hand for a long time, but AI in the automotive business is now changing the way this is done. With AI-driven algorithms, automakers can make designs that are more efficient, improve production processes, and build new versions of car models more quickly. 

AI helps car companies make smarter cars with better safety features, better gas mileage, and more driving comfort and convenience. Companies can test designs online before making physical prototypes by using simulations that are powered by AI. This makes design changes faster, which speeds up the development process, saves money, and gets the product to market faster.

AI also lets companies that make cars make 3D models of car parts directly from 2D drawings. When you hire app developers in India, it makes it easy for engineers to make parts that fit together perfectly. AI can also be used to find mistakes in design models and fix them. Companies that make cars are already using this technology to cut down on mistakes and improve the quality of their goods.

Automakers can keep track of how their cars are doing in real time thanks to AI-powered data and insights. This makes it easier to spot problems before they happen. This makes sure that any problems can be fixed quickly and keeps expensive refunds from happening. 

According to a study done by Deloitte, almost 62% of automotive executives think that AI will help them cut down on the time it takes to design cars and the money it costs to recall them. 

Overall, the use of AI in the automotive business has already made a big difference in how cars are designed and made. AI lets automakers make cars that are safer, run better, and are more efficient than ever before. As the business keeps coming up with new ideas, these benefits will only grow.

4. AI for Running Traffic

AI for Running Traffic

Image Source: medium

The automotive business can get a lot out of AI when it comes to managing traffic. AI-based technologies are being used to improve navigation, cut down on traffic, and find the best ways for vehicles, making driving safer and more efficient.

By using data from sensors on cars and infrastructure, AI systems can learn about traffic patterns and suggest routes that can help drivers save time and gas. AI can also be used to make algorithms that can correctly predict traffic problems before they happen. This lets drivers avoid areas with a lot of traffic or that are dangerous to drive in.

AI can also be used in the automotive industry to make smart traffic control systems. These systems use information from road sensors and cameras to automatically change the timing of traffic signals, making traffic move more smoothly and safely. With the help of AI, managing traffic can be faster, better, and less expensive than ever before.

5. Personalizing the in-car experience

AI-based technology can be used to give drivers a more personalized experience in their cars. With this technology, a car’s music, climate control, and navigation can be set up based on what the driver likes. 

AI-based systems can also help drivers stay in touch with the world by giving them news, entertainment, and other services when they want them.

AI can also help drivers get more out of their trips by suggesting routes, locations, and things to do based on what they like. 

For example, a driver’s AI-powered assistant could offer detours to scenic spots or alternate routes that take into account real-time traffic conditions. 

AI-based systems can also tell how a driver is feeling and change the car’s settings to match. For example, if the driver looks stressed or bored, the music volume might go down.

AI can make it possible for you to have a more personalized experience in your car, which can make driving safer, easier, and more comfortable. These kinds of tools can help drivers be more aware of their surroundings, which could make accidents less likely. Also, when AI is used in the automotive business, drivers can get up-to-date information about traffic patterns and other changes in their surroundings.

Read on to find out what the most important software development trends will be in 2023.


6. AI for cars that are online

One of the most common ways that AI is used in the auto business is in connected cars. Connected cars are cars that are hooked up to the internet and can get real-time access to a wide range of data and information. This technology helps drivers in a lot of ways, like making them safer, making it easier to find their way around, and giving them a lot of other services.

In the past few years, connected cars have become more and more popular. Now, more than half of all cars sold around the world are connected cars. 

Juniper Research has done a study that says this number will rise to over 80% by 2024. This fast rise has led to more innovative apps and features for connected cars, like:

  • Real-time traffic updates: Connected cars give drivers information about traffic in real time, so they can plan the best routes. This can save time and money for cars and make roads less crowded.
  • Voice-activated navigation: This feature lets drivers find routes and places to go without using their hands. It can also show drivers different routes based on how busy the roads are at the moment.
  • Vehicle health diagnostics: Sensors in connected cars can find out if there are any problems with how a car runs. The information is then sent to the driver’s phone or a service center so that, if needed, repair appointments can be made.

Connected cars have a huge chance of making roads safer by making it easier for drivers to find their way and avoid crashes.

A recent study by the World Health Organization found that more than 1.35 million people died in car accidents in 2018, and that connected cars could avoid up to 60% of these deaths.

Also, connected cars could help cut down on pollution by giving drivers information about how they drive and making suggestions for changes where needed. 

In a nutshell, linked cars are changing the car business by giving drivers a variety of new features and benefits. Since this technology is becoming more and more popular, it is possible that we will see more progress in this area soon.

7. AI to Make Parking Smart

Intelligent parking is a growing trend in the auto business, and it has made a big difference in how easy and fast it is for customers to park. 

A study by INRIX found that drivers spend an average of 17 hours a year looking for parking, which wastes $345 worth of gas and time. This can be cut down by a lot with smart parking options. 

Intelligent parking systems use artificial intelligence (AI) and sensors to find and keep track of open parking spots in real time. This makes it easy and quick for drivers to find parking places, saving them time, effort, and gas. 

Volkswagen, for example, just released a service called “We Park” that uses computer vision and AI to find open parking places and give directions to them. 

Intelligent parking is good for more than just making things easier for customers. It helps cut down on pollution by making cars spend less time sitting and looking for parking spots. It also makes parking safer by giving thorough information about how full each lot is.

Lastly, intelligent parking solutions help cities make better use of their resources because they can keep track of how many parking spots are available in each place. 

Intelligent parking is changing the automotive business as a whole, and as more and more companies invest in the technology, it is becoming more and more popular. As AI-powered solutions become more popular, we can expect parking solutions to become more efficient and cost-effective in the near future.

8. AI to make driving safer and better 

AI has been used in the auto business in a number of ways to improve the driving experience. AI-based technologies can give drivers more personalized experiences, like giving them real-time traffic updates, route ideas, and suggestions for nearby restaurants or entertainment venues.

AI can also make safety systems better by letting the driver know about possible dangers and obstacles on the road. AI-powered apps can also keep an eye on how drivers act and give them personalized advice to help them be safer on the road. 

Lastly, AI can be used in the automotive business to keep track of how people drive, which can help improve fuel efficiency and find ways to make things better. This can help drivers save time and money, as well as have less of an effect on the earth.

9. AI for maintenance that can be planned

Predictive maintenance is an AI application that uses data from sensors, wearables, and other sources to predict when a car will need to be serviced or fixed. In the predictive maintenance use case, AI is used to find potential problems before they happen. This lets maintenance be done ahead of time, which can lower the need for expensive repairs and downtime.

With predictive maintenance, AI algorithms are used to look at data from different sources, like how much fuel is used, how hot the engine is, how much air is in the tires, and other factors.

By keeping track of this information, AI can look for signs of wear and tear and let workers or owners know when a car needs to be fixed. This lets maintenance and fixes be done ahead of time instead of waiting for a problem to show up.

10. AI for automating CPQ

In the auto business, AI-powered CPQ (configure, price, quote) automation is becoming more popular. AI-powered CPQ lets companies give buyers a more personalized experience when they buy a car by letting them choose the model and features they want.

AI-powered CPQ can accurately predict customer preferences and offer features that meet their needs by using natural language processing, computer vision, and machine learning algorithms. To make sure it works perfectly, you might want to hire a software developer in India who can help you use AI in the automotive business perfectly.

Leading companies are using this technology more and more because it helps them give customers a better buying experience. With CPQ that is driven by AI, customers can choose from a wide range of car models, parts, accessories, and other features.

A recent study found that more than 90% of automotive companies use AI-powered CPQ in their sales process, and more than 80% of those companies have seen their customer satisfaction rates go up as a result. 

In the same poll, 83% of automotive companies said that AI-powered CPQ automation has helped them save money. This is because automating the CPQ process lets companies cut down on mistakes made by hand and get rid of jobs that are done more than once.

Predictive maintenance can also be used to find patterns in how a car is used and how well it works. This can lead to better gas mileage or other performance improvements. For example, AI can look at data from various vehicles to find ways to save fuel or improve performance.

Overall, predictive maintenance is a strong tool that can help cut costs and make things safer and more reliable while lowering costs. Predictive maintenance can cut down on car downtime and help auto companies make the most money possible by predicting problems before they happen.

Top Companies in the Auto Industry Using AI

AI has been used successfully in many areas of the automotive business, including manufacturing, design, supply chain management, production, and post-production. 

Also, AI in automotive is like a turning point for services like predictive maintenance and insurance that are sold after the car is sold. Before you start looking for a full-stack app developer in India, let’s look at the top companies using AI in the car industry.

1. Intel

Intel has a great ecosystem for AI developers, with lots of tools for data analytics, machine learning, and deep learning. Intel also makes the Internet of Things (IoT) better, which helps businesses collect data, analyze it quickly, and take action quickly at the edge.

2. Tesla

Tesla is known as the world’s leader in making electric cars, and its cars use artificial intelligence (AI) technology to help them drive themselves.

3. Waymo

Waymo is known for its skill in autonomous driving technology. It uses AI-powered solutions to give its fleet of delivery vans, taxis, and long-haul trucks self-driving capabilities.

4. BMW

BMW uses AI in a wide range of activities, including new vehicle development, energy management, personal assistants in vehicles, and advanced automated driving. It has around 400 AI applications.

5. The company Nvidia

Nvidia plays a key part in processing a lot of sensor data and is at the forefront of AI-based solutions for self-driving cars. This helps carmakers make better cars and makes it easier for new ways to keep track of the driver.

These are the few big car companies that are using AI to change the way they make cars. If you’re also in the car business and want to add these features to your cars, you’ll need to hire a specific development team that can handle how hard the job is.

But now the question is how to choose the right AI coders and how much it costs to hire them.

How to Find the Best AI Developers in India and How Much They Charge Per Hour 

When you first get to the market, it’s easy to feel like you don’t know where to start or what to look for. So, here are a few tips from pros that will help you narrow down your list of writers to the ones that are best for your business.

  • Set Clear Goals: Write out your AI project’s goals and needs in detail before looking for coders.
  • Expertise: Check the developers’ AI skills, experience, and portfolios to make sure they meet the goals of your project.
  • Check Their Technical Skills: Look for developers who know how to use AI frameworks and related programming languages (like Python, TensorFlow, etc.).
  • Review Past Projects: Look at their AI projects from the past to see how good their work is and how well they can solve problems.
  • Communication is important. To work well together, find developers with good communication, teamwork, and problem-solving skills.
  • Cultural Fit: Think about how well people from different cultures get along with each other and how well their time zones line up so that communication and teamwork go more smoothly.
  • Online Platforms: To find skilled coders, use online platforms like GitHub, Stack Overflow, or forums about AI.
  • Test Projects: Give them a small test project to see how well they know how to code and follow project deadlines.
  • Interview Carefully: Give them in-depth questions to find out about their technical knowledge, how they solve problems, and how excited they are about AI.
  • Cost analysis: Look into the usual hourly rates for AI developers in India and other places like the USA, Canada, Australia, and Europe to make sure your budget works.
  • Beware of Rates That Don’t Make Sense: Be wary of rates that are much lower than you would expect, as this could mean that the person has less experience or quality.
  • Freelancers vs. Outsourcing AI Developers: Decide whether to hire freelancers or AI development companies based on the difficulty and scope of the project.
  • Negotiate and sign a contract. Before starting the project, talk about terms, deliverables, and dates, and then write up a clear contract.
  • Continuous Learning: Make sure that coders are committed to keeping up with how quickly AI is changing.
  • Monitoring Progress: Check the project’s progress often, give feedback, and make sure it’s on the right track.
  • Look for developers who can change to changing project needs and problems that come up out of the blue.
  • Ethics and Data Security: Make sure that ethical AI practices and data security measures are followed, and sign NDAs to move forward with the project.
  • Long-Term Relationship: Think about working with developers who want to work with you for a long time to get help and updates.

Cost per hour to hire an AI developer in India, on average

AI developers in India can charge anywhere from $15 to $50 per hour, based on their experience, expertise, and the size and complexity of the project. 

Indian AI developers are much cheaper to hire than AI coders in the United States, Canada, Europe, and other places, where the hourly rate for AI coders ranges from $75 to $150.

How will AI change the future of the auto industry?

The future of AI in the auto business has a lot of potential and is going to bring about big changes. Here are a few key points that show where AI is going in this sector:

automotive business

Image Source: gminsights

AI-powered cars are changing the way we drive. For example, Tesla’s Autopilot can park, turn, and stop on its own. The newest BMW cars have speech assistants that are powered by AI to make driving more comfortable and safe.

Audi uses computer vision to carefully check sheet metal, catching even the smallest flaws while the cars are being made. Mercedes-Benz and Bosch work together to make high level 4/5 self-driving cars.

As more companies accept autonomy, it’s clear that self-driving cars are becoming more common. By the end of the decade, about 90% of cars will have AI systems built in.

AI has an effect on everything from making, designing, and maintaining cars to selling and marketing them. This could lead to better, safer, and more efficient cars.

According to Statista, the global market for automotive intelligence hit $26.49 billion in 2022 and is expected to grow to $74.5 billion by 2030.

Thanks to advances in AI, the automotive business is on the verge of a major change. Automakers are already making cars that are smarter, and AI is driving this change in the industry.

The future of the automotive business will be changed by automation and new ideas made possible by artificial intelligence.

If you’re ready to make a lot of noise in the future, Appic Softwares is a reliable platform that can help you use the power of AI in the automotive business.

How can Appic Softwares help you put AI to use in the automotive industry?

AI is being used more and more in the automotive business, which is changing how cars are designed, made, and driven. Appic Softwares can help you get the most out of this technology by giving you options that are made to fit the needs of your business. You can hire mobile app developers in India who have the skills and resources to make the right AI apps for your business. This will help you add AI capabilities to your current systems quickly and safely.

Our team can help you come up with advanced use cases like automated driving and connected cars, as well as more standard ones like CPQ automation, driverless cars, and better customer experiences. We also have options for preventive maintenance, traffic management, customized in-car experiences, and health diagnostics for vehicles. Our AI-powered solutions help automakers find new ideas and use their cars to their fullest potential.

At Appic Softwares, we know that AI is a powerful tool that can change the car business. We are dedicated to giving you the best solutions and services to help you take advantage of all the benefits that AI has to offer.

Get in touch with us right away to find out more about how we can help you use AI in the automotive business.


  • How much does it cost to add AI to solutions for the auto industry?

Adding AI to car solutions can be an expensive project. The cost of integrating AI relies on the size of the project, how complicated the AI solution is, and whether or not you want to build an in-house solution or buy one from a third party.

Companies that want to hire app developers in India to make an AI solution for the automotive industry should be prepared to pay anywhere from $20,000 to $100,000 or more, based on how hard the job is.

  • What are some of the most common problems with AI in the auto industry?

AI could change the way cars are made, but there are still some problems that need to be fixed before it can reach its full potential. Among these problems are:

  1. Data privacy: When it comes to AI and the automotive business, data privacy is a major concern. Automakers need to make sure that the data they collect is safe and private, and that the AI models they use don’t create biases or break any laws.
  2. Safety: AI can make safety features better, but there is also a chance that AI-powered cars could cause crashes. Automakers need to make sure that their cars with AI can run safely and without any problems.
  3. Cost of Implementation: AI technology is expensive to build and use, so automakers need to think about whether the costs are worth it.
  4. Regulatory framework: Automakers must also follow the laws and safety guidelines that apply to AI-powered cars.
  5. Security: There is a chance that hackers could break into connected cars and steal information or steal things. Automakers need to make sure that hackers can’t break into their cars.

These are some of the most common problems with using AI in the automotive business. Hiring software developers in India is an easy way to solve these problems.

  • How Will AI Change the Future of the Auto Industry?

AI will have a bright future in the auto business. We can expect that driverless cars, smart workplaces, connected cars, predictive analytics, and other technologies will keep getting better. Automakers will be able to come up with new ideas faster and give customers an even better experience if they use AI.

AI can also be used for advanced predictive analytics to figure out what will go wrong with a car before it does. This will make it possible for automakers and repair shops to do preventive maintenance, which will save money and improve customer service. AI can also be used to improve how companies make things, making them more efficient and cutting down on wait times.

Lastly, AI will make it possible for connected cars to offer even more services. For example, drivers will be able to get real-time traffic reports, personalized driving tips, and more. All of these apps have the ability to save money and make driving safer and more comfortable.

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