From Nasdaq, Inc.:

Car buyers are increasingly prioritizing artificial intelligence in their vehicle purchases, driving automakers to compete with Tesla and other new rivals in developing digital features. The industry is transitioning to “software-defined vehicles”, posing challenges with safety and durability standards and changing consumer demands.

Mercedes-Benz has launched a “beta program” to test ChatGPT AI technology, a departure from traditional automaker norms. Efforts to develop software capabilities to rival Tesla’s have cost billions, with GM experiencing software-related glitches and Volkswagen seeking technology partners to accelerate efforts.

Chinese EV brands are offering advanced infotainment functions and in-vehicle displays, gaining share in the world’s largest vehicle market. Japanese automaker Honda formed a joint venture with Sony to combine engineering and building vehicles with software and gaming expertise for new line of EVs.

The window for automakers to add fees for new software functions is “three to five years, max,” before these features become a commodity. Indicating the importance of keeping up with consumer demands and advancing technology in the auto industry.



Read more: FOCUS-At CES, legacy automakers scramble to keep up in AI arms race