Hype around artificial intelligence and its impact on the car industry is obscuring the true value of the technology, according to keynotes at a recent webinar organised by the Lead Agency.

Jason Craker, automotive transformation director at Changemaker

Up to 80% of what’s being said about generative AI can be disregarded – but the trick is to harness the 20% that is useful, according to Jason Craker, automotive transformation director at Changemaker and former CDIO of Polestar.

Craker explained to delegates at the Lead Agency event that senior figures in the automotive industry faced a huge number of issues with many priorities – but that AI may not be the panacea some might be hoping for.

There’s certainly potential, though, he added. In future and currently AI will help automate repetitive tasks to improve efficiency; and enhance search and content retrieval functionality on websites. Driver assistance systems in cars were starting to have AI built into them too, he explained.

Craker told attendees: “If I was still wearing my Polestar hat, I’d be thinking that things were coming at me from every angle. Current issues include autonomous vehicles; new, disrupting OEMs; shifting consumer demand; and direct customer engagement through the agency model.

“We also live in a world in which geo-political tensions are building and one in which factories are producing more cars than there’s demand for – all that has combined to create major uncertainty and a risk appetite that’s low.

“In turn, that’s led to a great challenge in our industry – so it’s never been more critical for us to embrace change.”

Artificial intelligence could play a crucial role in making the most of the finite resources the automotive industry has at its disposal, Craker said, but he warned against being over-enthusiastic about what it could deliver.

“There’s always something which is the next best thing,” he explained. “But we shouldn’t be like insects heading towards a bright light – it won’t end well.”

He referred to previous technological advances such as blockchain technology; augmented reality and crypto currencies – and indicated that AI might be a similar phenomenon in some respects.

He said: “We’re very much at the stage where we have inflated expectations of AI. We need to confidently ignore 80% the buzzwords and maximise value from the other 20%.”

So how will generative AI actually be able to help companies and organisations operating in the automotive space?

“I wouldn’t say there’s a single definition that covers what AI can deliver, but the one I hang on to is that AI is a machine’s ability to perform the cognitive functions that we associate with the human mind.

“This means it can learn, it can interact with the environment, it can help problem-solve. It can even exercise creativity.”

And even though some of the commentary at the moment might be overblown, Craker said that many of the world’s leading tech conglomerates were ‘really getting behind’ AI and that by the end of the decade, it is predicted that up to $16 trillion of the global economy will be linked to it.

“The potential of AI is undeniably there, although in terms of its capabilities, we’re still in a fledgling world,” he observed.

“People might be wondering whether generative AI is all it’s cut out to be. In response to that, we need to stay strong, continue to invest, and explore the ways in which it can be used in our industry.”

Jason Craker, automotive transformation director at Changemaker, was joined on the webinar by fellow speakers Will McMahon, head of tech and innovation at the Spark Foundry; and Edward Clark, chief product officer at the Lead Agency. The session was hosted by automotive consultant Patrick Fuller.