AI Adoption Patterns Among Major Original Equipement Manufacturers (OEMs) in Automotive Industry

This qualitative case study delves into the strategic adoption of artificial intelligence (AI) among five major original equipment manufacturers (OEMs) in the automotive industry: Volkswagen, Toyota, Tesla, GM, and NIO. The research examines how these companies leverage AI across their value chains, exploring the drivers, barriers, and strategic implications of their varying adoption approaches. The findings reveal that AI is viewed as a strategic imperative by all OEMs, with a particular focus on autonomous driving technology and data-driven innovation. While each company tailors its AI strategy to its unique strengths and market position, common themes emerge. These include a recognition of AI's potential to reshape competitive dynamics, the importance of internal capabilities and external factors in shaping adoption, and the emergence of disruptive business models like software-defined vehicles and mobility-as-a-service. However, AI adoption is not without its challenges, including technological complexities, safety concerns, and regulatory hurdles. This research provides valuable insights for OEMs and policymakers, offering a roadmap for navigating the complexities of AI integration and highlighting the opportunities and risks inherent in this transformative technology.