Here are some key takeaways from the report:
- Automakers can use AI to adapt to a changing transportation landscape, as it offers opportunities to both decrease production costs and create new revenue streams.
- Major auto companies are already adopting the technology in order to capitalize on the benefits it is expected to provide — Toyota launched a venture capital subsidiary in 2017, and Volkswagen has well over 100 AI applications running in trial projects across its 120 plants.
- By 2025, AI is expected to provide $173 billion in cost savings across the entire automotive OEM supply chain, ranging from procurement to research and development, according to McKinsey.
- Self-driving technology will be the biggest opportunity AI creates in the transportation space: It will present a $556 billion opportunity by 2026, growing at a 39% CAGR from $54 billion in 2019, per Allied Market Research.
- However, costs will still be a major barrier to adoption — more than half (53%) of global business and IT leaders cited the high costs associated with AI technology as a major deterrent to adoption, according to a survey conducted by MIT Technology Review.