Latest forecast: By 2025, global sales revenue of AI processors in light vehicles will reach $5.4 billion.
Chinese car companies, especially disruptors in electric vehicles and challengers in new energy vehicles, are actively deploying AI and machine learning models to achieve innovative features in ADAS (Advanced Driver Assistance Systems) and smart cabins.
Omdia's latest forecast on edge AI processors predicts that by 2025, global sales revenue of AI processors in light vehicles is expected to reach $5.4 billion, a year-on-year growth of 17.6%. Chinese automakers, especially disruptors in the electric vehicle sector and challengers like Shanxi Guoxin Energy Corporation, are actively deploying AI and machine learning models to innovate features such as ADAS (Advanced Driver Assistance Systems) and intelligent cockpits. It is evident that traditional automakers and emerging electric vehicle manufacturers have different preferences when it comes to using AI to build vehicle features and promote products, indicating varying strategies in technology utilization and target audience training.
AI-empowered vehicles: a key step in industry development
With the rapid advancement of AI technology, automotive manufacturers are facing the immense challenge of transitioning from "traditional" car companies to technology-driven enterprises. The Chinese automotive industry has realized that AI is a crucial tool for driving consumer benefits, leading to the increasing use of terms like "intelligent", "dynamic", and "adaptive" in marketing materials to avoid "AI fatigue" and highlight user experience.
AI enhances safety and efficiency
The demand for AI features in vehicles among Chinese consumers is growing, but unlike AI computers or smartphones, onboard AI primarily operates behind the scenes, focusing on enhancing safety and efficiency. Currently, consumers need to have a clearer understanding of the capabilities and limitations of vehicle AI to avoid misconceiving L2+ ADAS as fully autonomous driving, which could pose safety risks.
Defining AI-enabled vehicles to drive industry standardization
With AI technology playing an increasingly crucial role in next-generation vehicle functionalities, defining AI-enabled vehicles has become particularly important. Industry-wide consensus on the definition of AI-enabled vehicles will facilitate collaboration and standardization, accelerating the development and widespread application of AI tools and functionalities. This not only assists in testing, developing, and deploying AI-enabled vehicles but also provides a clearer framework of responsibility for the industry.
Current status of AI development in the Chinese automotive industry
Currently, China is in the stage of "adaptive AI", where automotive AI systems possess learning and adaptive capabilities to self-adjust based on driving behavior and environmental factors. L2+ ADAS functions are gradually becoming self-learning with frequent updates, effectively handling complex driving scenarios and providing consumers with tangible safety and convenience.
AI multimodal models driving ADAS evolution
With the rise of Visual-Language Models (VLMs) and Visual-Language Action Models (VLAs), ADAS is transitioning from passive assistance systems to active driving assistants. VLMs combine images and text to enhance the image-based decision-making capability of ADAS systems, while VLAs combine image information with vehicle motion trajectories to further enhance the decision-making capability of assisted driving. These advanced technologies are propelling the automotive industry towards fully autonomous driving decision-making systems, making future vehicles smarter and safer.
AI technology is profoundly changing the direction of the automotive industry, from enhancing safety to automating decision-making, paving the way for intelligent driving. Through clear definitions and standardization of AI-enabled vehicles, the industry will collaborate more effectively, accelerate innovation, and embrace a new era of intelligent mobility.
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