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New technology is disrupting legacy automakers’ business models and dampening consumer demand for purchasing vehicles. Tech-mediated models of transportation — like ride-hailing, for instance — are presenting would-be car owners with alternatives to purchasing vehicles.
In fact, a study by ride-hailing giant Lyft found that in 2017, almost 250,000 of its passengers sold their own vehicle or abandoned the idea of replacing their current car due to the availability of ride-hailing services.
Artificial intelligence (AI) is one technology automakers can turn to in order to adapt to this changing landscape. AI will create significant opportunities for automakers to both reduce production costs and introduce new revenue streams, including self-driving technology, predictive maintenance, and route optimization.
This will enable automakers to take advantage of what will amount to billions of dollars in added value. For example, self-driving technology will present a $556 billion market by 2026, growing at a 39% CAGR from $54 billion in 2019, per Allied Market Research.
But firms face some major hurdles when integrating AI into their operations. Many companies are not presently equipped to begin producing AI-based solutions, which often require a specialized workforce, new infrastructure, and updated security protocol. As such, it’s unsurprising that the main barriers to AI adoption are high costs, lack of talent, and lack of trust. Automakers must overcome these barriers to succeed with AI-based projects.
In The AI In Transportation Report, Business Insider Intelligence will discuss the forces driving transportation firms to AI, the market value of the technology across segments of the industry, and the potential barriers to its adoption. We will also show how some of the leading companies in …read more
Source:: Business Insider