Digital Ecosystems and AI Take the Wheel at CES

Partnerships between automakers and tech giants are reshaping vehicles into interconnected, software-driven products, with AI poised to redefine customer interactions and revolutionize the driving experience.

The automotive industry is undergoing a digital transformation as more players join forces to change how vehicles are integrated into consumers’ lives. No longer is the focus simply on the mechanics of a car — the future lies in software and the experiences that these systems can create.

At the forefront of this change are unconventional partnerships between automakers and tech giants, including companies such as Rivian, Qualcomm and Google. These collaborations are creating a more interconnected ecosystem that blends automotive hardware with state-of-the-art software. The result is a new automotive experience that promises to redefine consumer expectations and alter car ownership in ways that were unimaginable just a few years ago.

During a session titled “The New Era of the Automotive Ecosystem” on Wednesday (Jan. 8) at the CES 2025 Conference in Las Vegas, three leading industry experts explored the digital transformation within the automotive sector: Wassym Bensaid, chief software officer, Rivian; Patrick Brady, vice president Android Automotive, Google; and Nakul Duggal, group GM, Automotive, Industrial & Embedded IoT, and Cloud Computing, Qualcomm.

Software Takes Center Stage

Much like the introduction of smartphones transformed how consumers communicate, the automotive sector is undergoing its own reinvention — centered around software.

“The biggest change is the increasing importance of software,” Bensaid explained. “It defines the entire experience. I actually really love the comparison with smartphones, because the big picture in the auto space is seeing a similar disruption to what happened in the phone space 20 years ago. It’s not about the specs of your engine. It’s about the types of experiences and features your car can offer.”

Duggal added, “Things have fundamentally changed. They [cars] are a digital lifestyle product.”

This evolution goes beyond simply upgrading software, Brady explained. It calls for a fully integrated ecosystem that links every aspect of the car — from the underlying software to the digital features and services that enhance the ownership experience. Achieving this vision requires collaboration across the industry, with each player bringing their specialized expertise to create seamless, connected car experiences.

Building Common Platforms

“Google introduced Google Earth into Volkswagen and Audi cars,” Brady said. “We were used to the pace of innovation that happened on the web and in mobile thanks to the ubiquity of platforms. As things switched from mechanical to digital, we spent more time on innovation and building partnerships with leading carmakers and bring our platform and software in the car.”

At the time, the auto industry was “highly fragmented,” Brady added, “and that was very costly to do across multiple platforms. We needed to build common platforms. We believe open platforms are the most powerful, and the best allow OEMs [original equipment manufacturers] to take charge of the experience and innovate.”

Duggal stressed the importance of an open ecosystem in driving innovation. Qualcomm works closely with automakers to build platforms that support this digital evolution.

“When you bring new ecosystems together, there is a level of resistance in terms of what direction you’re headed and what your agenda is,” Duggal said. “The approach we took was very bottoms up. We focused on how to make the product better and didn’t dictate any approach. We built an ecosystem in transparent fashion.”

This mindset has allowed for the seamless integration of new technologies, setting the stage for ongoing development, and driven continuous evolution. As Bensaid pointed out, today’s vehicles are not static; they evolve even after they’ve left the showroom.

“The beauty of connected architecture and connected cars is we can redefine the customer relationship,” Bensaid explained. “It’s about features that continue to evolve even after you buy the vehicle. We created a community with our customers and they feel part of the product and we take their feedback very seriously.”

AI: Future of Driving

The next frontier in this digital transformation lies in artificial intelligence (AI), Duggal said, adding, “I feel comfortable saying that AI in the car will happen faster than use cases in the phone, and that only happens if you get an ecosystem working together.”

AI capabilities will be pivotal in framing the future of automotive technology, Brady stated.

“As you bring AI into the vehicle, I think it will completely transform the customer experience,” he said. “It will be truly conversational and natural. It will see what the car sees and help you when you drive. It’s going to be an explosion of innovation in this space.”

As this ecosystem continues to evolve, the digital potential for cars seems limitless.

“The end goal should be using AI that can transform the experience and help us unlock having that voice-first experience,” Bensaid added. “Having more powerful hardware will help you get to that level of latency and performance and create greater engagement from customers.

“The best compliment we can get is when customers don’t realize there is software behind what they’re doing.”

The post Digital Ecosystems and AI Take the Wheel at CES appeared first on PYMNTS.com.