AI Is Reinventing the Car What Does That Mean for You?

The headline-grabbing news in the automotive industry focuses on self-driving, autonomous vehicles. The growing strength and capability of AI paired with increasingly sophisticated sensors and cameras are enabling rapid progress in fully autonomous, self-driving vehicles. These AI-driven systems use sensors, cameras, and machine learning algorithms to power self-driving cars, aiming to enhance safety and reduce human error on the road.

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The 2026 Volvo EX90 and 2026 Polestar 3 have received the new Nvidia Drive AGX Orin supercomputer chip with more processing power, with the 2026 Volvo ES90 also set to get it next. Some models from Swedish brands Volvo and Polestar have also recently announced an upgrade to gain more capable AI tech. Outside of Mercedes and Tesla, brands such as BYD are introducing new-generation ADAS in China – including on more affordable models. While Tesla Full Self-Driving (FSD) Beta hardware is installed in all new models locally, you can’t use it yet. As it stands today, Tesla Autopilot and Enhanced Autopilot modes are legal in Australia and available to local Tesla owners, but Full Self-Driving (FSD) Beta is not. Matt Hobbs, CEO of the Motor Trades Association of Australia, said his organisation has just released a consultation on a new code of conduct between repairers and insurers because there are “already issues … where crash repairers and insurance companies don’t always agree”.

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We’ve cooked up an even deeper dive into what you can expect from robotaxis and autonomous cab services in 2025, which you can check out here. Initially, this allowed the car to be in control up to 60km/h on a freeway only, and the driver had to take back control within 10 seconds. However, the speed was increased to 95km/h in late 2024, and Mercedes hopes it can hit 130km/h by the end of the decade. TV presenter Andy Lee shared his experience of getting into a Waymo robotaxi on a recent trip to Los Angeles, where a limited number of such vehicles are permitted to transport people around the city.

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In 2025, AI is poised to play a significant role in shaping the future of transportation, promising to revolutionize the way we design, manufacture and interact with cars, trucks and SUVs. AI dashboard technology has the potential to minimize distractions and mitigate the consequences of lapses in attention, particularly as driver assistance and autonomous technologies continue to evolve. Ltd., demonstrated an in-car AI assistant that’s based on locally hosted large language models and powered by Intel’s chip. The AI assistant can even engage with bored drivers in more general, leisurely chats about other topics, such as what they can expect to find at their destination. AI is helping to optimize the supply chain to ensure the availability of critical parts at the right time while minimizing unnecessary inventory and handling product quality issues. AI is helping by predicting demand, optimizing inventory, and managing logistics.

AI Is Reinventing the Car. What Does That Mean for You?

The automotive industry is evolving beyond its traditional role of merely transporting people from one place to another. Yet, just as AI is set to enable transformation for the automotive supply chain, it exposes the industry to an equally rapidly evolving slew of AI-driven cybersecurity threats. This makes the relationship between AI and cybersecurity in the realm of auto a vital one.

• Harman’s Luna system can assess the heart rate, stress levels, and cognitive load to detect driver fatigue.
• However, as these technologies become more prevalent in vehicles, it falls to automakers and regulators to prioritize safety and security within these AI-powered vehicles.
• Embedded in the operating systems of consumer hardware, AI agents empower consumers to delegate all discovery and research to AI — a massive time-saver.

Many manufacturers now have phone apps that offer connected services, personalising infotainment, providing real-time traffic updates and the like, seamlessly integrating your car and your smartphone as well as other devices. When asked by Drive if he felt this could be invasive for drivers, with the potential for advertising spam, O’Halloran said users can opt out of marketing phone calls if they wish. O’Halloran also said that, beyond service bookings, the technology can also organise a test drive for a new model and let people know when there’s a sale on that they might be interested in. While we all know robots have been making cars for decades alongside actual human beings, AI takes things a step further by looking at ways to reduce human error.

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Beginning in 2025, HARMAN, launched its Ready product portfolio, which infused vehicles with a brain, senses, and a voice. Not harnessing the opportunities presented to us through AI could pose a great setback for automotive industries worldwide, but seizing them without assuming the correct cybersecurity postures could be disastrous. South Africa’s automotive industry is not only a significant contributor to the nation’s GDP, accounting for around 5% in 2023, but also a key focus for government support through initiatives like the Automotive Production Development Programme (APDP).

Last year, I got a real world taste of how artificial intelligence is gearing up to change the way we interact with our cars. While driving the new Audi Q6 e-tron, I asked, “Hey Audi, what’s a good place to visit outside of Bilbao?” and was pointed to the beautiful coastal city of San Sebastián and told to check out the stunning views from Monte Igueldo or the Peine del Viento sculptures by Eduardo Chillida. Tesla has previously insisted that FSD does not make the vehicle completely autonomous and requires “a fully attentive driver who is ready to take immediate action at all times”.

“A range of modern vehicle safety systems leverage machine learning and advanced data analysis, which can be categorised as Artificial Intelligence (AI),” said ANCAP. While ANCAP ratings aren’t legally required for a vehicle to go on sale in Australia, high safety scores have become a consumer expectation in recent years, and some safety features are now a legal requirement, such as autonomous emergency braking (AEB). The tech is integrated with what is known as Dealer Management Systems (DMS), using data to provide real-time analytics and detailed reports on customer behaviour and support dealerships by driving sales. Another example can be found in how Mazda is tapping into artificial intelligence to cut the development time of its electric vehicles, as was reported by Drive in early 2024. AI-driven automation and robotics are being used in automotive manufacturing to make production processes more optimal and efficient. AI agents can autonomously own routine tasks and workflows, changing the role of human service professionals to handle only the most complex cases and value-added jobs.