AI Streamlining Maintenance Costs for Automakers: Predictive Technology Anticipates Vehicle Issues, Potentially Saving Billions
In the rapidly evolving world of automotive technology, the software-defined vehicle (SDV) is revolutionising the industry. With its ability to provide access to critical vehicle data, SDVs offer a wealth of opportunities, but they also expose more potential issues.
According to Yoav Levy, CEO of Upstream, many core functions of modern vehicles, particularly battery-electric vehicles (BEVs), have been taken over by software instead of hardware. This shift presents a significant challenge for automakers, as BEVs are simpler cars but have a more complex software stack due to the replacement of some hardware components by software.
Some OEMs may have less experience in software development than hardware development, a fact not lost on Levy. However, he believes that AI technology can help automakers navigate this complex landscape more effectively.
AI technology can detect indications or anomalies in connected cars before they manifest into customer claims. By being proactive rather than reactive to issues, automakers using AI-powered quality control analysis in SDVs can potentially save between 5% and 20% on warranty and recall claims.
This potential saving is substantial, given that automakers globally pay about $51 billion annually in warranty claims and hold $140 billion in warranty reserves, according to a report by Warranty Week. The use of AI in quality control can significantly mitigate a major source of ongoing financial and operational risk related to vehicle defects and recalls.
AI can also shorten the root-cause analysis in the investigation of potential quality issues, making the process faster. The pressure of speed from Chinese manufacturers is pushing the industry to quickly provide new features and services, potentially leading to inadequate pre-launch testing of software systems. AI technology can help automakers maintain quality control more effectively, especially in this context of cost reduction and competition with margins going down.
In other automotive domains, like predictive maintenance, AI delivers 25-40% cost reductions on servicing. While the specific quantified saving in warranty and recall claims is conservatively estimated lower, it is still highly significant for automakers.
However, the precise savings will vary by manufacturer and implementation maturity. Nonetheless, current expert analysis places the potential cost reduction on warranty and recall claims firmly in the range of 5% to 20%.
The benefits of AI-driven quality control are clear: they offer the potential to save automakers billions of dollars, while also enhancing the consumer's ownership experience by reducing the likelihood of multiple recalls and reliability issues. As the industry continues to embrace the SDV, the role of AI in maintaining quality control will become increasingly crucial.
- The dealer network in the automotive industry can benefit significantly from the use of AI in data-and-cloud-computing, as it can help in reducing warranty and recall claims by 5% to 20%, thus saving substantial financial resources.
- The integration of technology like AI in the software-defined vehicle (SDV) can offer a competitive edge to automakers in the automotive industry, particularly in a context where Chinese manufacturers are pushing for quicker product launches.
- In the automotive industry, where battery-electric vehicles (BEVs) are becoming more prevalent, data-and-cloud-computing technology, such as AI, can play a pivotal role in detecting potential issues in connected cars, eventually leading to cost reductions in warranty and recall claims.
