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Summary
This article discusses the emergence of AI-first software-defined vehicles (SDVs) as a transformative development in the automotive industry, where software facilitates personalized experiences and ongoing enhancements. It highlights the necessity for investment and skilled personnel, points out global labor shortages, and describes how Vietnam’s growing abilities and intersectoral partnerships position it as an attractive location for future advancements.
What makes AI-first SDVs a pivotal change?
AI-first software-defined vehicles signify a transition from hardware-driven design to a focus on software and AI in mobility solutions. They operate features through programming, receive updates wirelessly, and create tailored experiences for users inside and outside the vehicle. As car manufacturers shift their research and development efforts towards software, these vehicles are set to deliver more intelligent and safer functions, further propelling the digital evolution of the industry.
The phrase software-defined vehicle (SDV) refers to a car whose essential operations and functionalities are controlled by software, enabling customization of both interior and exterior experiences while allowing for new features to be introduced wirelessly without hardware alterations. With customers increasingly desiring integrated and seamless digital experiences, the industry is moving away from hardware-first approaches to embrace software-led designs. Deloitte predicts that by 2029, over 90% of new cars on the market will be software-defined.
As the age of AI progresses, automakers are facilitating the shift towards SDVs using AI technology, resulting in the creation of “AI-first SDVs” that enhance the software model and provide smarter, safer, and more individualized experiences. Furthermore, industry leaders are rapidly advancing, with 74% of executives forecasting that vehicles will become software-defined and AI-oriented by 2035, intending to allocate as much as 58% of their R&D budgets to software and digital innovations.
What challenges does the automotive sector face in transitioning to software-defined vehicles?
The transition towards software-defined vehicles is hindered by interconnected obstacles, including a worldwide shortage of skilled workers, a dwindling supply of AI-compatible chips, and disjointed R&D strategies. These challenges increase costs and delay production, yet collaborations and initiatives for standardization like AUTOSAR provide pathways for scalability and quicker market introduction.
The industry is entering a software-defined phase, which necessitates skills that blend automotive and technological expertise. As a result, businesses must address talent shortages, hardware limitations, and the need for collaboration among ecosystems to maintain progress.
Talent shortage
A significant concern persists regarding talent availability in sectors such as transportation, logistics, and automotive, with 76% of companies facing challenges in recruitment. With job requirements now integrating automotive engineering with software skills, the development of talent is crucial. Outsourcing can be beneficial; however, the global shortage of tech talent—which impacts nearly 90% of companies internationally—complicates the search for providers that possess both robust technological skills and comprehensive knowledge in the automotive field.