“Using artificial intelligence is igniting the next step in our path to becoming a global automotive technology driver,” says Hauke Stars, a member of the Volkswagen Group's Management Committee. “AI is key to increasing speed, quality and competitiveness from vehicle development to production across the value chain. Our ambition is to accelerate the development of attractive and innovative vehicles and bring them to customers more than ever before.
Artificial intelligence is already used in all major business domains of the Volkswagen Group. Today, over 1,200 AI applications are already active across the group, with hundreds more developing or approaching. In the long term, the Volkswagen Group hopes to increase efficiency and cost avoidance by 2035 totaling up to 4 billion euros.
Artificial intelligence as an important technology for the entire company
For example, in vehicle development, the Volkswagen Group, together with its partner Dassaustry, is building an AI-powered engineering environment in all group brands and across all regions. It is designed to support engineers through virtual testing and component simulation, and to dramatically accelerate the development process. Alongside other initiatives, the collaboration aims to help group brands reduce product development cycles to under 36 months.
AI integration is also moving forward in production. We are leveraging the Volkswagen Group's proprietary Digital Production Platform (DPP) – “factory cloud” currently connecting more than 40 sites – Volkswagen is continuously introducing new AI applications into its manufacturing process. They help optimize the interaction of complex processes in vehicle assembly, contributing to more efficient use of energy and materials, reduced costs, and reduced emissions.
Additionally, AI-powered applications enhance cybersecurity across the group and promote knowledge sharing across the group. This is a key component of digital transformation and the long-term viability of a company.
Training from the AI Shop Floor to the Meeting Room
With the WE & AI initiative, the Volkswagen Group launched one of its largest internal education and qualification programs in spring 2024. The ongoing initiative aims to enable employees at all levels of the organization to engage in AI and responsible and practical ways. To date, it has reached over 130,000 employees worldwide.
Collaboration with European technology and industry partners for IndustrialAI
The Volkswagen Group aims to further use artificial intelligence through close collaboration with technology and industry partners. In this context, the company is currently investigating the possibilities of so-called large-scale industrial models (LIMs). This is an industrial AI model based on actual manufacturing, design and process data from voluntary participating companies.
Collective industrial process knowledge can be used to help optimize internal workflows and train AI models that allow for more efficient logistics and process control across the industry. The organizational blueprint for this initiative could be Catena-X. It is the first open platform for the entire automotive sector and beyond, allowing for secure data exchange between manufacturers, suppliers and technology providers. Founding members include Volkswagen, BMW, BASF, Mercedes-Benz, SAP, Siemens, ZF, and T-Systems.
Volkswagen advocates an innovation-friendly framework in its global AI race
Volkswagen is committed to actively shaping the future of European AI, supporting political and economic frameworks at both national and European levels. In an increasingly challenging environment marked by high energy prices, rising location costs and management complexity, we believe that technological innovation in German and European artificial intelligence must be promoted through political support.
Hauke Stars: “We support the innovation-friendly evolution of European regulations. Additionally, we need targeted incentives. This includes, above all, funding programs that enhance spinoffs from universities and research institutes and accelerate the transfer of scientific knowledge into market-ready applications.”
Digital sovereignty requires European infrastructure
Technology independence and resilience begins with maintaining control over data. This only works if data is stored, processed and protected within Europe. Against this background, the Volkswagen Group has sharpened its strategic focus. The group-wide private cloud infrastructure will be greatly expanded over the next few years, allowing for internal processing of sensitive information. The move aims to enhance the company's digital resilience to external risks and impacts.
