Generative AI promises transformative change in automotive industry, says GlobalData

As the automotive industry embarks on this tech-driven journey, generative artificial intelligence (genAI) emerges as the new engine to combat some of its critical challenges and make operations more efficient, sales more effective, products safer, and customers more satisfied, according to GlobalData, a leading data and analytics company.

Kiran Raj, Practice Head of Disruptive Tech at GlobalData, comments: “The next decade is make-or-break for automakers, requiring them to either adopt transformative innovations or risk relinquishing control to major tech companies. With sustainability demands, electric revolutions, capacity challenges, and shifting mobility trends, the clock is ticking for automotive leaders.”

Shagun Sachdeva, Project Manager of Disruptive Tech at GlobalData,  adds: “GenAI can be deeply integrated into every part of the automotive operation, from upstream to downstream. It helps predict demand, manage inventory, improve buying strategies, and revolutionize customer service after sales. This lets automakers quickly adjust to the changing situations and stay connected with the pulse of real-world trends.”

An analysis of GlobalData’s Disruptor Intelligence Center highlights how genAI can offer solutions to various sector challenges in automotive industry.

Research & Development

GenAI employs generative adversarial networks (GANs) for rapid vehicle design concepts and efficient real-world driving simulations, while also advancing autonomous vehicle development through simulation, sensor fusion, system learning, and risk assessment.

In June 2023, Toyota Research Institute (TRI) announced using genAI to enhance the design process of its vehicles.


GenAI transforms automotive safety by leveraging real-time data to enhance advanced driver assistance systems (ADAS), improving collision detection, lane-keeping, adaptive cruise control, and parking assistance. This fusion of data-driven insights and adaptability significantly elevates road safety standards.

In March 2023, Synthesis AI addressed the demand to improve driver safety and meet regulatory requirements by expanding synthetic data capabilities for advanced driver monitoring systems (DMS), occupant monitoring systems (OMS), and advanced driver assistance systems (ADAS).

Customer Experience

GenAI transforms customer experience by revolutionizing navigation with optimized routes, creating personalized journeys based on user preferences, and tailoring driving experiences to user behaviors. Additionally, it enhances human-machine interactions, allowing natural conversations with vehicle AI for improved convenience and safety.

In June 2023, Mercedes-Benz integrated ChatGPT into its in-car voice control system “MBUX Voice Assistant” to elevate the driving experience.

Sachdeva concludes: “While the use of genAI has the potential benefits of increasing efficiency and effectiveness in various parts of the automotive value chain, it is not a magic bullet that can solve all the problems of the automotive industry. Automotive companies need to be mindful of the ethical considerations, hallucination, accuracy, data privacy, and security in their transformative journey of embracing genAI. It is unlikely to quantify the full implications of genAI shift, however it is a powerful tool that can augment human creativity and intelligence.”