Volkswagen announced on the first day of the IAA Mobility international trade fair in Munich its intention to integrate artificial intelligence into all areas of its business, with the aim of generating significant cost savings. The investment will focus on the development of AI-based vehicles, industrial applications, and the expansion of high-performance IT infrastructure. According to estimates, the large-scale adoption of artificial intelligence could lead to savings of €4 billion by 2035.
The company expects that the use of AI will significantly accelerate the development of new models and bring advanced technologies to market more quickly. “For us, artificial intelligence is the key to greater speed, quality, and competitiveness along the entire value chain, from vehicle development to production,” said CIO Hauke Stars.
The focus on AI comes at a delicate time for Volkswagen, which is undergoing major transformations in two key markets: China and Germany. In Germany, the group is implementing a large-scale cost-cutting program, while in China it is focusing on innovation and the launch of new models to face growing local and international competition.
Confirming its renewal strategy, the automaker announced the launch of a new line of compact electric vehicles scheduled for next year, with the goal of selling several hundred thousand units in this segment in the medium term. Meanwhile, Volkswagen shares rose 1.3% on Tuesday, up 14.3% since the beginning of the year.
One of the reasons driving Volkswagen to invest in AI is the possibility of optimizing complex processes such as supply chain management and large-scale production. With a global network of suppliers and plants, the company could leverage artificial intelligence to predict logistical disruptions, reduce waste, and improve production planning, thus gaining a competitive advantage in an industry where efficiency and speed are crucial.
Furthermore, the integration of AI represents a strategic step to address future mobility challenges. AI technologies are, in fact, the basis of autonomous driving, the personalization of services, and the onboard and predictive analytics of vehicle data.
By focusing on these innovations, Volkswagen aims not only to contain costs but also to strengthen its position as a leader in the transition to a smarter, safer, and more sustainable mobility ecosystem.
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