How OEMs can Harness AI to Improve Productivity - President of Manufacturing at Tata Consultancy Services

Big Tech and the automotive industry are crossing paths. Tata Consultancy Services (TCS) is one company that's helping automakers and OEMs navigate and accelerate their journey towards Software-Defined Vehicles (SDVs).

Auto Futures caught up with Anupam Singhal, President of Manufacturing at TCS, to discuss SDVs, the talent shortage in the auto sector and the benefits of AI.

"The auto industry’s currently at a tipping point – OEMs are starting to focus on sharpening their software as much, if not more, than hardware. The skills needed to accelerate the adoption of new technology and mobility experiences are very different from what product engineering traditionally means in the auto sector," says Singhal.

One of its most recent offerings is the Auto Gen AI Suite. It helps speed up the design, development, and validation of SDVs by leveraging Large Language Models (LLMs) and Vision Language Models (VLMs) for in-vehicle and cloud-based systems.

"Thanks to the deep domain expertise of our 4,000+ tech engineers, we’ve helped leading global automotive OEMS and automotive software suppliers adapt to market trends to develop the next-generation architecture required to be on the cutting edge of SDV development and forge a new future for the auto industry," he explains.

The upcoming SDV era is set to bring challenges as well as opportunities for the auto sector.

"The SDV era will bring in a refreshed way of working, where we will witness OEMs launching hyper-personalized products faster with minimal disruptions, with embedded security with the industry mushrooming into newer revenue avenues."

"It’s brought about a needed gear shift: the boundaries limiting innovation are collapsing. For example, we’ve seen the development of EV battery passports to improve supply chain transparency – often-opaque, tracking the lifecycle of batteries can massively improve the pre-production process. We’ve also seen shorter launch cycles boosted by dynamically updatable feature sets enabling OEMs to launch new products faster and roll out new features quicker with minimal disruptions," he adds.

Championing AI

Singhal believes that OEMs should harness AI to improve productivity. This means using AI to increase the time-to-market of new features and optimise capital expenditure.

"This is specifically helpful for the development of Autonomous Vehicles (AV) and the race towards SAE level 5 (Society for Automotive Engineer’s 5 levels of driving automation ranging from 0, fully manual, to 5, fully autonomous). To create level 5 AVs, manufacturers need to sift through the right data – that's where AI comes into play. Considering there are petabytes worth of testing data, machine learning models allow car manufacturers to robustly test AV algorithms," he says.

"This is just the tip of the iceberg. Soon enough, Gen AI will work its way into every part of the auto supply chain and customer touchpoints as manufacturers look to fulfil consumers’ desire for cars as a digital product."

By 2030, it is estimated the AI industry will be investing billions of dollars in the automotive industry. 

"Ultimately, AI should be championed, however, the way its uses are communicated can change how it is perceived. Auto manufacturers must grasp that technologies such as GenAI will empower their traditional workforce to achieve more with fewer resources, supplementing their workforce rather than replacing it. Properly communicating this and helping individuals to upskill in the era of AI will not only assist in alleviating concerns, but also help attract the right talent," says Singhal.

Fostering Cross-Pollination

Currently there is a talent shortage in the auto industry. However, it could benefit from the job uncertainty in the tech sector.

"As OEMs shift their focus from a 'one-time sale' to curating customer experience 'for life', the auto industry is missing crucial talent to execute this type of customer longevity. It requires talent with coding skills who can create digital mobility experiences such as SDVs, connected and autonomous vehicles, multi-modal infrastructure, and smart city integrations, just for example," says Singhal.

"The automotive sector has become a new ‘promised land’ for aspiring data scientists, battery engineers and others. Looking at the largest automakers’ job sites, GM and Ford, we can see there’s already over 300 software engineering positions available, ready for the taking. Tools like GenAI can help long-time automotive experts pass down knowledge and train recent graduates too."

OEMs can also benefit from doing more to attract Gen Z software developers.

"Gen Z developers are drawn to opportunities where they can make a meaningful impact quickly and work with latest tech solutions. For automakers, that means zeroing in on sustainable vehicles: hybrids, EVs and hydrogen fuel technology, where they can make a big difference to the planet," he explains.

"Automakers need to emphasize working culture, and work-life balance. It’s what drew software developers to Big Tech. That means providing challenging tasks, convenient work locations, and competitive compensation. In the US it’s something we’ve already seen happening with OEMs expanding their presence in tech hubs and major cities such as the Bay Area and Pittsburgh where skills are more readily available."

Finally, we asked Singhal for this thoughts on what will mobility will look like by the end of the decade.

"By 2030, mobility will be centered around tailored customer experiences and ecosystems that span across non-auto industries, such as retail and entertainment. In action that means vehicles must have constant connectivity, dynamic UI and UX, updateability, and modularity," he predicts.

"The future of mobility will also be sustainable. EVs account for 7% of automobile sales in America today - that number should double by 2030 to 15%. The US target is for half of all vehicles sold to be zero-emission in the same time frame, and Europe’s targets are even higher. These targets will no doubt shape the future of automakers priorities, where we will see more hydrogen fuel-cell vehicles on the road too."

"Ultimately, the role of the OEM will be at the epicenter of a mobility ecosystem. To accomplish this, OEMs need to facilitate an environment fostering cross-pollination of ideas from different industries, operating with agility beyond a rigid organizational structure will be critical," concludes Singhal.