Assembling Momentum: Why the Automotive Manufacturing Industry Embraces AI-Enabled Automation

Production line, assembling vehicle
Andrew Bagley

Andrew Bagley, Manager – North American Industry Sales – Transportation

In many ways, the history of automotive and parts manufacturing is the history of automation. Ever since the first Model T rolled off Ford’s revolutionary new moving assembly line in 1913, motor vehicles have been inextricably linked with innovation in manufacturing automation. Say the words “assembly line” or even “factory” and the image that pops into most people’s heads is of an auto plant. Since then, automakers have largely been at the forefront when it comes to the large-scale implementation of new industrial automation solutions.

Given that history, it’s maybe a little surprising that automotive manufacturers took their time investing in AI-powered automation for handling complex, custom designs. As of 2019, according to a Capgemini report, only 10% of automakers had deployed AI at scale, with 24% deploying it selectively. They’ve since made up for lost time: by 2022, that same report showed 80% of automotive manufacturers using AI in some fashion, making it one of the most AI-intensive manufacturing categories. What’s more, the automakers leading the charge are already showing significant return on their AI investment.

In This Article

  • Industry leaders like BMW, Hyundai, and Daimler are already achieving significant ROI through AI innovations like predictive maintenance and supply chain optimization.
  • Barriers to adoption include: poor understanding of potential benefits, unfamiliarity with AI tech, concerns about “haywire” robots, reconfiguration difficulties.
  • Emerging AI-enabled solutions are quickly reducing the difficulty of reconfiguration, and reducing time needed from days to hours.
  • Digital twins and generative AI are revolutionizing factory training, allowing teams to practice with virtual simulations before physical implementation.

AI-driven improvements to automotive manufacturing, from QC to maintenance and more

Innovations like AI-enabled quality control, predictive maintenance, and collaborative robots (or “cobots”) have already shown great ROI in the factories where they’ve been installed. BMW, one of the leading-edge adopters, reports saving more than 500 minutes of unplanned stoppages per year through predictive maintenance. Meanwhile, Hyundai and Daimler Trucks North America (DTNA) are using sensors and AI algorithms to track supply chains, receive parts shipments, and prep production cells. All of this adds up to saved time, resources, and ultimately money.

Chart-AI maturity

These kinds of benefits are, if anything, likely to grow in the coming years. The technology is getting smarter, more mature, and more affordable as adoption spreads. And some growth categories like EV, with vehicles sporting fewer parts and more prefabrication, are particularly well-suited to benefit from smarter automation. Automotive battery manufacturers also stand to benefit enormously thanks to AI vision systems that ensure correct assembly and adhesive application.

Yet success stories like BMW’s and Hyundai’s are still just leading indicators rather than the industry-wide standard, and AI adoption is still far from universal. So why the lag?

Information and complexity are the biggest obstacles

In part, you can blame poor communication. Success stories like these aren’t as widely known as they should be. The lack of familiarity with the technologies can also be daunting, even for veteran engineers: the transition to AI can feel like a much bigger leap than the incremental improvements brought by earlier waves of innovation.

The perceived complexity might be an even bigger factor. In a recent survey, 65% of automation engineers reported dealing with long setup times for product changes of all sorts. The real problem, it turns out, may not necessarily be with AI, but with making changes in general.

This is why rapid reconfiguration is so crucial to the future of AI-enabled automation. One of the great promises of AI—besides efficiency and uptime—is flexibility. Especially as motor vehicles themselves become more advanced, being able to rapidly reconfigure a factory to accommodate improvements is critical. But for many factories, throwing AI into the mix adds yet another layer of complexity, making it appear less nimble, not more.

There’s an AI for that too!

Fortunately, some of the most promising advances in AI automation are pointed in exactly that direction. French startup Inbolt is a good example. Using AI vision, they’ve developed a system that can match real-world configurations to CAD models or 3D scans, cutting reconfiguration times from days down to hours, while allowing robots to work in far less structured environments. In many cases, custom jigs and indexing tools can be dispensed with entirely.

Another big obstacle to reconfiguration is the human element: training. Gen AI offers much promise here too. Thanks to digital twins, virtual simulations of factories are becoming more detailed and immersive, and can be built faster and more cheaply than ever. Imagine, then, a virtual factory, accessed through VR or screen-based interfaces, that perfectly simulates a reconfiguration and guides the factory team through their new tasks—all while actual physical improvements are being installed. The result is quicker, more effective training, so teams can hit the ground running as soon as installation is complete.

Chart-Automotive AI market size

This is one of the things that sets AI-enabled automation apart. It’s not just a technology that improves speed, quality, and reliability. It also uses that same flexibility to ease adoption. “AI automation helping you implement AI automation” might sound a little sci-fi, but that’s exactly what the market has in store in the next few years.