MHP’s international study, AI as Game Changer: The New Driving Force of the Automotive Industry, shows the use of AI in cars through a survey of 4,700 participants in China, the US, Germany, the UK, Italy, Sweden and Poland.
The study analyzed and evaluated the potential of using AI along the entire value chain, from development to production to application in the vehicle. It found that 79% of respondents in Europe are interested in AI-supported cars, but only 23% are interested in paying an extra charge for it.
However, only around 60% say that they understand the use of AI in cars. In China, this figure is higher, at 80%, whereas in Europe it is only 54%. More global differences are evident in the study. In China, 48% of respondents see in-car AI as an opportunity; only 23% of European respondents do so, and 24% even take a negative view, believing the risks outweigh the benefits.
AI-supported enhancements to cars also meet with a mixed response. AI functions would push 84% of the Chinese drivers to buy a vehicle and 48% of the European drivers. If manufacturers were to charge extra for AI applications, the willingness to pay would drop. For instance, of the European drivers, only 23% are willing to pay, compared with 39% of the Chinese drivers.
A fixed extra charge is mostly likely to be accepted at the point of purchasing the car – less so for activating features later or for flexible/monthly use. The conclusive evidence from the survey is that users would not buy in-vehicle AI applications – they expect such functions to be standard. For manufacturers, this means aligning AI business models in vehicles so that they generate the highest benefit possible while also improving the user experience.
“The figures show that the prospect of greater safety and comfort due to AI can motivate purchasing decisions. However, the European respondents are often hesitant and price-sensitive,” said Marcus Willand, a partner at MHP and one of the authors of the study.
Dr Nils Schaupensteiner, an associate partner at MHP and co-author of the study, added, “Automotive companies need to create innovations with clear added value and develop both direct and indirect monetization of their AI offerings, for example through data-based business models and improved services. The study also provides specific approaches for this.”