How is the Automobile Industry using AI/AR/VR for Digital Transformation?

Technology

Idris

4 min

Jan 14, 2025

Tech has never advanced faster in the history of humanity than it has in the past few decades. If a graph was drawn to show the growth of technology in just the past 10 years, you'd see the graph shoot up exponentially with no sign of it plateauing in at least the near future. AI has contributed a lot to this sudden growth spurt that the tech sector is facing. Not only are AI models themselves advancing at an impressive rate, but they’re also facilitating the growth of other tech alongside them. Education, finance, customer service, and the automobile industry are all sectors that have reaped the benefits of AI growth in a variety of ways. 

 None more so than the automobile industry, but AI isn’t the only technology that it is benefitting from; augmented reality (AR) and virtual reality (VR) also play a massive role in streamlining and improving a lot of the processes related to the life cycle of a vehicle. AI, AR, and VR are involved from design to actually being driven by a consumer.

How AI, AR, & VR Help the Automobile Industry

Artificial Intelligence (AI)

 The first way is obviously self-driving cars. In case you weren’t aware, self-driving cars don’t run on pixie dust; they have powerful AI within them that has been meticulously trained using thousands of possible scenarios to make the optimal decision for the most efficient driving experience possible. These AIs analyse the space around them using tech like cameras, radar, and LiDAR to map the world around them, giving them a full 360 view. 

But it isn’t just the exterior of the car that the AI enhances but the interior as well. AI assistants in cars have become all the rage, allowing you to pick up calls, play music, and set a new destination all with your voice. 

If you thought that self-driving and being an assistant were the only ways AI contributed to the automobile industry, you thought wrong. AI helps facilitate the production of new lines of vehicles too, from design to manufacturing. Using AI, companies can create the optimal form of cars to reduce drag, increasing fuel efficiency. As for production, robots with AI trained to build these cars can do so with rarely any error during the production process, making it safer and quicker.

Augmented Reality (AR)

 So many modern cars contain futuristic heads-up displays (HUDs) that project info like speed, navigation, and fuel level on the windscreen glass, allowing you to watch your speed while paying attention to where you’re going while making the experience feel like a game, which is fine as long as the game you imagine yourself in isn’t GTA.

Most people like fixing things they buy by themselves, especially with the rise of the DIY trend, where consumers come up with makeshift solutions to any problem they’re facing with the tech they buy. AR can help support this by overlaying instructions on how to take apart and fix a car depending on what the issue is; this can be further improved with the addition of MR headsets like the Apple Vision Pro or the Meta Quest 3, which users can utilise for a hands-free AR experience, freeing them up for more while also making them feel like Iron Man most likely.

Virtual Reality (VR)

 Designing a car and testing it costs a tonne of money and resources, especially with all the crash tests that have to be done. So why not design it in a virtual world with a lifelike physics system that would accurately represent what driving and crashing in the car would feel like and look like in real life, at least for the preliminary tests, so as to save on time and resources?

Curious to see how well your car would do in extreme driving conditions? A blizzard or a hurricane, maybe even an earthquake—well, those natural phenomena can’t be replicated in the real world, but in the virtual world, all of those conditions are as simple to recreate as a push of a button (which also involves a lot of coding, but let's ignore that). 

As for the pièce de résistance of VR, customer test drives and shopping for a car just got a high-tech upgrade. With VR, potential buyers can "step inside" their dream car from wherever they are. Explore the interiors, adjust the seat, and get a feel for the space—all without leaving their couch. It's like test-driving a car without the awkward chat about financing. This immersive experience isn’t just fun; it helps customers make confident, informed decisions. For a real-life example of this, read our case study on the VR test drive experience we developed for Maruti’s Brezza launch. (add a link to the Brezza case study here)

The fusion of AI, AR, and VR is driving the automobile industry into an exciting new era. From revolutionising car design and manufacturing to transforming how we drive, maintain, and even shop for vehicles, these technologies are rewriting the rulebook. The result? Smarter, safer, and more engaging automotive experiences. As innovation accelerates, it’s clear that the future of mobility is not just about where we’re going; it’s about how we’re getting there. Buckle up; the ride has only just begun!

Virtual Reality (VR)

  1. Immersive Design and Prototyping:

    • Automakers use VR to create and test vehicle prototypes without physical models, saving costs and accelerating development cycles.

    • VR enables collaborative design sessions across global teams.

  2. Training and Simulation:

    • VR is used to train assembly line workers, technicians, and even sales staff in a risk-free, controlled environment.

    • Driving simulators help train drivers for specific scenarios, like hazardous weather or complex traffic situations.

  3. Enhanced Customer Engagement:

    • VR experiences allow potential buyers to "sit inside" and explore cars remotely, improving engagement and decision-making in the sales process.

Benefits of AI/AR/VR in the Automobile Industry

  • Cost Efficiency: Reduces prototyping costs, minimizes downtime, and optimizes resource use.

  • Safety: Enhances vehicle safety through AI-powered systems and driver training using VR.

  • Personalization: Offers tailored customer experiences, from car configurations to in-car systems.

  • Sustainability: Supports eco-friendly practices through AI-optimized manufacturing and energy-efficient vehicle designs.

Future Trends

  • The integration of AI with AR/VR for real-time vehicle diagnostics and over-the-air updates.

  • Advanced AR navigation systems using 5G for real-time data streaming.

  • Fully immersive VR-based car buying platforms where customers can experience and purchase vehicles from anywhere.

By leveraging AI, AR, and VR, the automobile industry is not only enhancing operational efficiency but also redefining the way vehicles are experienced and perceived by consumers. This digital transformation marks a critical shift toward a smarter, safer, and more connected automotive future.

About the Author

Idris
Content Writer

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About the Author

Idris
Content Writer

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