Artificial Intelligence: Empowering Firms Like Never Before—Global Auto Sector (Part 4 of 5)

In this commentary, DBRS Morningstar explores how auto manufacturers are leveraging artificial intelligence (AI) to improve design, manufacturing, and operations and add to driver safety and comfort. This in turn is not only increasing vehicle costs and complexity but also customer demand and OEM revenues.

Key highlights include:
-- Autos are using AI to introduce a range of innovative and safety features in a bid to increase customer value and differentiate from the competition.
-- Growing customer demand for these features has resulted in the acceleration of AI adoption.
-- AI use is increasingly common across all manufacturers. However, those who underinvest in or lag behind in regards to AI adoption could face weakened market positions and see weakened credit profiles.

“AI has significantly transformed the auto sector but we are barely scratching the surface. Increased AI adoption should support demand and will yield meaningful future benefits to the customers in a way of increased features and safety. Auto manufacturers lagging on the AI investment curve may not be able to capitalize on this demand opportunity,” said Vineet Khattar, Vice President, Diversified Industries.

For more on artificial intelligence, please see DBRS Morningstar’s commentaries in the series:

Part 1 of 5: Artificial Intelligence: Empowering Firms Like Never Before

Part 2 of 5: Artificial Intelligence: Empowering Firms Like Never Before—Global Airlines Sector

Part 3 of 5: Artificial Intelligence: Empowering Firms Like Never Before—Global Grocery Sector

Part 5 of 5: Artificial Intelligence: Empowering Firms Like Never Before—Global Telecom Sector