AI to dominate cars at this year's CES

At the CES trade show in Las Vegas, US, next week, many companies are expected to show how using artificial intelligence (AI) in vehicles makes them smoother and safer for drivers through better in-vehicle virtual assistants and cabin monitors.

The new focus area for carmakers after years of investment in autonomous technology that used AI is technology that allows a “hyper personalised” experience while buying and driving cars, Boston Consulting Group MD Akash Arora said.

“They're trying to figure out, 'if I could get to this level of customer experience, it can really differentiate me in the market',” he said of companies in the car industry.

For example, Cerence, which makes AI-powered virtual assistants, is set to announce a partnership with Volkswagen and Israel-based Cipia is expected to unveil a system that monitors signs of distraction and drowsiness in drivers.

Amazon.com said it will announce a generative AI partnership with BMW but declined to provide details before the show.

Many carmakers are adopting AI in various stages of production to reduce costs, said Wendy Bauer, vice-president of automotive and manufacturing at Amazon Web Services, which counts BMW and Toyota as customers. AI can help carmakers save money by speeding up vehicle development and ensuring better quality checks during manufacturing, she said.

OpenAI boss Sam Altman will not appear at CES, but the generative AI fever his startup set off last year will be on display as gadget makers race to find consumer uses for the technology. Formerly known as the Consumer Electronics Show, the event runs from January 9 to 12.

In devices for the visually impaired, and safety systems involving guns at schools, to facial-recognition software that can assess vitals, and cabin-monitoring systems inside autonomous cars, dozens of companies have planned announcements for the show about how they are building AI into their gadgets.

OpenAI's influence at the show despite Altman's physical absence is reminiscent of Apple and its founder Steve Jobs, whose clout was felt despite him avoiding the show, with many firms jockeying to display gadgets compatible with the company's sleek products.

Altman is widely regarded as the poster child for the AI frenzy that has gripped the tech industry for the past year. He made headlines in November when he was briefly ousted by the ChatGPT maker's board and reinstated days later after more than 700 employees threatened to quit and join OpenAI investor Microsoft in solidarity.

Among other projects, OpenAI is working on secretive AI hardware with famed former Apple designer Jony Ive, according to media reports.

Funding for generative AI projects exploded last year, surging more than fivefold to $23.78bn (R446.85bn) to the beginning of December from 2022, according to PitchBook data.

“It's the year of AI in everything,” said Maribel Lopez, tech analyst at Lopez Research. “If you don't have AI in your product, don't show up, it's not worth talking about.”