Artificial Intelligence in Automotive Industry Strategic Intelligence Report 2025: Focus on Predictive Maintenance, Supply Chain Optimization, Design Innovation with Generative AI

AI offers significant market opportunities in the automotive industry by enhancing vehicle design, production, and operation. Key areas include predictive maintenance, supply chain optimization, design innovation with generative AI, and improved customer engagement through personalization and smart in-car features.


Dublin, Dec. 04, 2025 (GLOBE NEWSWIRE) -- The "Strategic Intelligence: Artificial Intelligence in Automotive" report has been added to ResearchAndMarkets.com's offering.

AI is transforming all parts of the automotive value chain. From predicting maintenance needs and streamlining supply chains to optimizing manufacturing processes and enhancing the in-car user experience, AI enables fundamental shifts in how vehicles are designed, built, and operated.

The report covers how AI overcomes key challenges in the automotive industry. These include automotive design, ESG regulations, customer engagement, cybersecurity, autonomous driving.

AI is transforming the automotive industry

Artificial intelligence (AI) refers to software-based systems that use data inputs to make decisions on their own. According to the analyst forecasts, the total AI market, including software, hardware, and services, will be worth $641.8 billion in 2029, having grown at a compound annual growth rate (CAGR) of 37.4% from $131.3 billion in 2024.

AI is transforming all parts of the automotive value chain. From predicting maintenance needs and streamlining supply chains to optimizing manufacturing processes and enhancing the in-car user experience, AI enables fundamental shifts in how vehicles are designed, built, and operated.

Generative AI is accelerating automotive design

Automotive design has never been more complex. On top of traditional concerns like aesthetics and safety, designers must now integrate physical and digital systems for electric vehicles (EVs) and autonomous driving. Generative AI (GenAI) can produce thousands of design iterations - from individual components to complete vehicles - based on specified inputs and constraints, like weight and aerodynamics.

Some tools even work from simple prompts, such as "sleek" and "SUV-like." GenAI can also simulate real-world performance, enabling teams to shortlist and validate the best performers before moving on to physical prototyping. However, these tools are only as good as the inputs they receive. Automakers should avoid rushing ahead without first agreeing on core design criteria.

Unlocking customer engagement with AI

The consumer market for vehicles is incredibly saturated. Automakers and dealerships must find new ways of differentiating themselves to customers through greater personalization. Automakers such as Volkswagen and Tesla have incorporated GenAI models into infotainment systems, giving their vehicles new capabilities such as auto-adjusting climate control, conversational voice assistance, and smarter navigation.

In after-sales, AI-based telematics and analytics can predict maintenance, auto-schedule appointments, and reserve parts. Automakers can greatly improve customer perceptions of quality and strengthen their reputation by reducing the chance of unplanned breakdowns or emergency repairs to vehicles.

Report Scope

  • This report provides an overview of AI and how it will impact the automotive industry.
  • The report predicts how AI in automotive will evolve, including the key challenges it will solve.
  • It includes selected case studies highlighting who is innovating in automotive using AI technologies.
  • The report also includes a comprehensive data analysis, including market size and growth forecasts for the AI market.

Key Topics Covered:

  • Executive Summary
  • Players
  • Value Chain
  • The Impact of AI on Automotive
  • Case Studies
  • Companies
  • Sector Scorecard
  • Glossary
  • Further Reading

For more information about this report visit https://www.researchandmarkets.com/r/x8smjh

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