From engines to algorithms: Gen AI in automotive software development

Companies in the automotive and industrial sectors are rewiring to become software-enabled enterprises. As in-vehicle software emerges as a critical differentiator, companies have started to reevaluate the role of software and overhaul their development approaches. Today, software serves as the backbone for advanced features and safety-critical functions while enhancing operational efficiency and propelling innovation. But software can also introduce organizational challenges, because underdeveloped software capabilities can result in start-of-production delays and budget overruns.

Generative AI (gen AI) is disrupting the ongoing software transformation by introducing new opportunities and challenges. Companies are still in the process of changing their software operating models, for example, by setting up and maturing dedicated software development and delivery units while adapting the collaboration model with their suppliers. Additionally, organizations are actively recruiting new talent with specialized software expertise while simultaneously reskilling their existing hardware-focused workforces to adapt to software-centric roles. As gen AI advances, organizations must be able to capture the substantial productivity potential reported across various domains while balancing the nondeterministic challenges of this technology and the criticality and security requirements of their systems.

Source: McKinsey