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Predii Industry Update: Automotive AI claims its seat at Board level tables

What is happening in the Industry in 2022? We are seeing specialized AI evolve into a key driver for successful analytics solutions in the automotive servicing ecosystem. Emerging industry trends such as Connected Vehicles, 'Right-to-Repair Act', and Digital Consumer Products, along with global industry challenges continue to catalyze new business models. We are seeing dedicated AI budgets transforming the Service side of the business.

"Predictive Intelligence Solutions are advancing to claim their seat at Board Level tables." Tilak Kasturi, Founder & CEO.

Which Key Industry Insights are we observing?


  1. More accessible and actionable data is driving new business models that tap into previously independent revenue opportunities.

  2. Leveraging AI-powered insights is entering into key Board level business growth discussions.

  3. Predictive Service use cases such as Breakdown Prediction, Remaining Useful Life (RUL) of equipment, and Predictive Maintenance have moved from explorative to funded business plans and POCs.

  4. Advances in Natural Language Processing models make AI more accessible and applicable to challenges in Automotive Service Data.

  5. With Microsoft Megatron-Turing NLG model (530 B parameters), Meta GPT-3, Google BERT-large, the race towards larger generic language models has begun.

  6. Specialized AI for Automotive vs. generic AI expertise is becoming more recognized as value-driving advantage.

  7. The drivers for AI investment are moving from the IT department to Product and Innovation Leaders.


Predii Thought Leadership snippets from 2022 Industry Events


Understanding the Automotive Data Ecosystem today and in the future [2022 Jefferies Automotive Aftermarket Investor Conference, NYC]

  • The Automotive Servicing Ecosystem is complex, dealing with ~1.4 Million VIO globally, increasing avg. vehicle age (12.2 years), and 100k+ make, model, engine, transmission combinations.

  • Rich but noisy and unstructured data is produced in the Automotive Ecosystem throughout every touchpoint in the vehicle life-cycle - there is a gap between accessing data and making it actionable.

  • Leveraging AI to power data-driven use cases has become a major focus and key to successfully navigating complexity and capitalizing on data.

Trending Use Cases for applied AI in Automotive [IOT Solutions World Congress 2022, Barcelona]

  • Predictive Service Intelligence and CRM: “John, your 2019 BMW X3 needs service”

  • Consumer-facing Service Intelligence: “What are my vehicle’s top Safety Concerns?”

  • Driving Parts & Service Sales: Predicting Part replacement with IOT (Right part, right place, right time)

  • Automate High Frequency Decisions: Preventive & Predictive Maintenance Assistance

Challenges with Applied AI in Automotive [IOT Solutions World Congress 2022, Barcelona]

  • Availability of data for research community is limited; data is proprietary and heterogeneous.

  • Automotive data requires domain-specificity: Textual data contains industry and local acronyms, incomplete sentence structures; Connected car data is not continuous, lacks coverage.

  • Large Language Models are not purpose-built for industry specific use-cases and lack ‘deep contextual understanding’ in a specialized domain.

State-of-the Art NLP Trends [ISO/IEC AI Workshop Series Emerging Tech Trends, virtual]

  • Transformers changed the landscape and is here to stay.

  • Multi-lingual NLP is going mainstream.

  • Low-code NLP becomes increasingly popular.

  • Self-supervised learning (hybridization) is on the rise.

  • Multimodal systems are gaining momentum.


How AI is disrupting the Service Ecosystem [Automotive Service Symposium, New York City]

  • AI is uniquely suited to augment decision-making within the complexity of the automotive service ecosystem.

  • Specialized AI Solutions vs. generic AI expertise is a value-driving advantage.

  • Disruption 1: AI leverages historical data

  • Disruption 2: Democratization of Expertise

  • Disruption 3: Prediction enables right part, right place, ahead of time.

If you are interested to learn more or if you would like a copy of our presentations, please feel free to reach out.

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