How major automakers are positioning themselves to master AI in 2025
- Robert Fisher
- Aug 7
- 4 min read
Updated: Aug 15
Artificial intelligence is reshaping the automotive industry at unprecedented speed, making it challenging to keep track of every announcement and partnership. From AI driven in-vehicle voice assistants and assisted driving solutions, to AI agents powering natural interactions and over-the-air updates, OEMs around the world have moved quickly to integrate AI technologies into their vehicles and development processes. In this Insight, we deliver a brief overview of the major launches, partnerships and technology adoptions that defined the first half of 2025.
HY1 key announcements by OEMs in the automotive AI space
Polestar is using the computing power provided by the NVIDIA Drive system for their automated driving features and also enable new features via OTA (Over-the-Air).
Nissan becomes the first Non-Chinese OEM to bring DeepSeek AI into its N7 Electric vehicle to enable a smoother human-machine interaction.
IM motors is leveraging the use of an AI Agent to support their new interaction mode of No Touch & No App enabling true natural interaction for every scenario.
Audi and Momenta come together to accelerate an intelligent assisted driving solution with the help of Momenta’s Flywheel Large Model to create a Luxury standard for EVs.
VW has introduced ChatGPT in their 2025 Jetta and Jetta GLI models, as well as their MY24 ID.4 EVs. This enhanced voice assistant will use AI to deliver a sophisticated, more user-friendly, in-vehicle user experience.
From automotive AI use cases to scalable strategies
AI is advancing faster than any previous technology wave, and it's rapidly transforming the automotive industry. At SBD Automotive, we’ve identified over 50 meaningful automotive AI use cases - and that number is growing quickly. We’re seeing a clear shift in client conversations: from asking what AI can do, to exploring how to develop, deploy, and maintain AI solutions at scale. Increasingly, clients are seeking guidance not only on use-case selection but also on building the underlying system capabilities and defining a long-term AI strategy.
The value of AI is emerging along two main fronts: enhancing in-vehicle user experience (e.g., ADAS, virtual assistants), and improving enterprise operations such as R&D, manufacturing, supply chain, software development, and cybersecurity. But regardless of the application, successful AI deployment hinges on robust system engineering capabilities—particularly around data infrastructure and iterative model updates. That remains a major capability gap for most OEMs still working to establish a solid SDV foundation.
"As the industry moves beyond AI experimentation into real-world engineering, automakers are confronting a range of deployment challenges - from explainability, compliance, and privacy protection, to high-quality data collection, IP safeguards, and evaluating AI capabilities across the supply chain. Meanwhile, we see ambitious players making significant investments in in-house AI chips, data centers, fleet-based data acquisition, and fast model iteration. The Scaling Law still applies in automotive. At the same time, the rise of open-source and small models, combined with increased collaboration across the ecosystem, is helping lower the cost and timeline barriers for AI adoption. These shifts are enabling broader, faster, and more sustainable AI implementation across the industry."
HY1 partnerships and acquisitions related to automotive AI
BMW & Alibaba expand partnership in China to integrate Alibaba’s Qwen LLM into BMW
BMW Neue Klasse EVs will integrate Alibaba LLM Tech. The AI engine will be based on Yan AI, a smart cockpit AI solution developed by Banma (SAIC/Alibaba joint venture). The new BMW Intelligent Personal Assistant (IPA) will debut in BMW Neue Klasse models produced in China starting from 2026. The solution has three capabilities: human-like interaction, multi-agent coordination, and digital ecosystem integration.
Mercedes-Benz introduces the first combined integration of AI Tech In-Vehicle in CLA
Mercedes-Benz leverages multiple AI agents Google Gemini AI and Microsoft Bing & ChatGPT4o to power “Hey Mercedes”. It is the first production implementation of Google Cloud Automotive AI Agent for in-vehicle conversation. The solution maintains contextual awareness and offers 4 “personality traits” – natural, predictive, personal and empathetic.
GM and NVIDIA expand AI collaboration across vehicles, factories & robots
GM and NVIDIA are working together to use AI in manufacturing, vehicle technology, and robotics. GM intends to use the NVIDIA Omniverse platform to create digital twins of vehicle assembly lines, allowing virtual testing and production simulations to reduce downtime. GM already using NVIDIA GPUs for simulation and validation of vehicle software. The next-gen vehicles will use DRIVE AGX based on Blackwell architecture – 1000 TOPS
Hyundai partners with NVIDIA for AI-enabled development
Hyundai Motor Group signed a partnership agreement with NVIDIA for AI enablement across business. Like GM, the agreement spans SDV, ADAS, development, and manufacturing. The collaboration, leverages Omniverse for physical AI and digital twin & Cosmos for virtual simulation
Keeping up-to-date
These updates only scratch the surface of everything AI in the automotive industry this year.
SBD Automotive’s AI for Automotive Guide offers insight into generative AI use cases across the entire vehicle lifecycle, and projects how they will shape the industry over the next five years. It examines upstream applications functional verticals and delivers real world case studies while mapping short term mid term and long term opportunities. The Guide also lists potential partners and outlines the varied approaches that leading players are taking today to help you stay ahead in a rapidly changing market.
For custom projects, SBD Automotive provides expert Automotive AI Consulting Services to help ideate, plan, deploy and measure the effectiveness of artificial intelligence in vehicles and across your enterprise.