Artificial Intelligence (AI) software chatGPT recently stunned the world with its ability to create advanced chatbots. Developed by OpenAI and released in November of 2022, chatGPT has surpassed a million users and is in talks of a subscription model to meet demand.

Big tech is taking note, with heavyweights Google and Microsoft getting their hands dirty with the development of software that rivals chatGPT. It’s no secret that AI development impacts the tech world, but how will it bleed into the automotive space?

Spoiler: Humans aren’t fully obsolete yet, but AI may offer clever solutions to propel the auto industry forward. Keep on reading to learn more.

What is Artificial Intelligence?

AI is a hot-button topic. Some marvel at its capability, while others are wary of its implications. Existential dilemmas aside, AI isn’t going anywhere, and will only become a part of our every day (work) life.

But let’s back track and define AI. John McCarthy’s 2004 paper “What is Artificial Intelligence?” states that AI is “…the science and engineering of making intelligent machines, especially intelligent computer programs. It is related to the similar task of using computers to understand human intelligence, but AI does not have to confine itself to methods that are biologically observable.”

With that definition, it’s easy to see how AI has impacted our lives in subtle ways. Though AI is making splashy headlines more recently, it’s been around for years. Social media, facial recognition and even autocorrect are all examples of AI.

Now that you know what AI is, let’s dive into its relationship with the automotive industry.

AI and Automobiles

Autonomous driving cars were once a piece of science fiction, but with the rise of brands like Tesla spear-heading innovation, more manufacturers utilize AI in their vehicles and production lines.

AI plays a significant role in vehicle infotainment systems and technology. Features like navigation and digital assistance are becoming more mainstream instead of being reserved for luxury vehicles.

Popular manufacturer Subaru is prepping an AI-based next-generation EyeSight driver assist system that is slated for a 2025 launch. This new technology will utilize Subaru’s stereo camera system and leverage AI for autonomous driving and auto parking.

With these manufacturers enhancing their technology, AI will become a feature in the automotive market. Shoppers will want convenient tools that enhance their driving experience.

Not only will it demand other manufacturers to level up their AI offerings, but it will propel AI to the mainstream car market.

Fully Automated Financing

Upstart, an auto refinancer, will begin expansion in the second quarter of 2023 to around 30 dealerships. Upstart utilizes AI and more data points than a typical loan application, which provides a broader picture of the applicant’s risk and credit situation.

Out of Upstart’s nearly 800 dealerships, only 30 have been able to utilize their AI-based, highly automated lending system that helps customers find loans. Automated financing can enable a more streamlined online buying experience, allowing customers to pick their car and apply for financing all in a click.

Alex Rouse, Vice President and General Manager of Upstart Auto Retail, told Automotive News that this feature has only been available in-store, not online. This can be a game changer for both dealers and customers.

Dealers can leverage automated financing to provide convenience to more buyers, where customers can save time by going digital.

Looking Towards the Future

Though AI continues to boom, there’s still more innovation to be had before a seamless integration into the automotive industry. However, as AI evolves in vehicle technology, finance and operations, we will see what all it can do to enhance the experience of dealers and customers.

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