From Software Defined to AI Defined
Like it or not, cars are becoming more and more digital, so physical connections aren’t as necessary as they once were. The term software-defined vehicles, or SDVs, has emerged recently, and it’s pushed vehicle development faster than ever. A perfect example is the Chinese auto industry, which has been churning out new cars faster than anyone in history.
Now, some automakers seem keen to move on to the next chapter. For BMW, it’s AI-defined vehicles, and it’ll change the way it builds cars, as well as the structure of the company as we know it. It’s a seismic shift that BMW announced recently, and we could see the fruits of that by the next-generation model cycle.
For Agility and Efficiency
BMW is among several legacy automakers starting to lean more into AI. For example, Nissan optimized AI for the next-generation Skyline and Infiniti Q50, which drove its rapid development. That said, BMW will also integrate AI in all aspects of its business. “Consistent use of agentic AI applications across all areas of the company will be a game-changer for more agile and efficient development, leaner structures and faster decision-making,” said BMW CFO Walter Mertl.
BMW already uses AI in manufacturing. It already has standardized IT and data models, along with intelligent systems for nearly every stage of production. The goal now is to enhance AI agents to perform more challenging tasks. AI will also be used for production robots that the company showed last time out.
This system will also be implemented further into a vehicle’s core development. Previously, it was for individual applications, but BMW aims to use AI not only to speed up development, but also to stay agile when changes need to be made quickly. The company’s goal is to develop an AI system that can handle end-to-end support. That means it should handle initial technical requirements, virtual road tests, crash testing, and even release. Of course, there will still be a human element, as developers will track every move it makes until it is eventually approved.
BMW
However…
The AI push does come at a cost. In this case, there will be redundancies. There’s no changing course, as the BMW Group reached an agreement with its Works Council in July on the matter. A voluntary severance package will be offered
In the company’s words, “By the middle of next year, the BMW Group will reduce the number of divisions and associated management roles by 20%, with a comparable reduction at the organisational levels below.” With that, Munich will undergo significant streamlining and adjustments.
BMW
