Volkswagen and Cerence Collaborate to Bring New, Generative AI-Powered Interaction to Drivers
- Volkswagen will be the first automaker to integrate Cerence Chat Pro with unmatched flexibility and customization
- Cerence Chat Pro will enable drivers and passengers to engage the in-car assistant in fun and conversational chit-chat, leveraging ChatGPT to provide accurate and relevant responses
- Volkswagen will roll out Cerence Chat Pro via cloud updates to cars already on the road, delivering immediate value to drivers
- Volkswagen and Cerence will explore collaboration to design a new, large language model (LLM)-based user experience for a safer and more joyful driving experience
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Insights
The integration of Cerence Chat Pro into Volkswagen's vehicles represents a significant milestone in the automotive industry's adaptation of AI technology. This move signals Volkswagen's commitment to enhancing the in-car experience through conversational AI, which could increase customer satisfaction and potentially lead to higher brand loyalty. The deployment via cloud updates demonstrates an agile approach to innovation, allowing for rapid implementation and continuous improvement without the need for physical alterations to the vehicle.
From an industry perspective, Volkswagen's initiative may set a new standard for in-vehicle technology, prompting competitors to accelerate their own AI integrations. This could lead to a broader trend of technology-focused partnerships between automakers and AI firms, influencing stock valuations based on perceived future-readiness and tech leadership within the sector.
The partnership between Volkswagen and Cerence could be a strategic move to differentiate Volkswagen's offerings and capture a larger market share by appealing to tech-savvy consumers. As generative AI becomes more prevalent, consumer expectations are shifting towards more personalized and interactive in-car experiences. The ability to engage with an intelligent assistant for both productivity and entertainment purposes may become a key decision factor for potential buyers.
Market research indicates a growing consumer interest in vehicles that incorporate advanced technologies. Volkswagen's early adoption of Cerence Chat Pro may enhance its competitive edge, potentially affecting market dynamics and influencing consumer purchase decisions. The impact on Volkswagen's sales and market positioning will be an important metric to monitor in the coming quarters.
The technical aspects of integrating Cerence Chat Pro into existing Volkswagen models are noteworthy. The use of cloud updates to add new features to vehicles already on the road is an example of how the automotive industry is shifting towards software-centric models. This approach not only reduces the time-to-market for new features but also extends the value of the vehicle post-purchase, which could contribute to a higher residual value.
Furthermore, the anticipated design of a new large language model (LLM)-based user experience for Volkswagen's next-generation in-car assistant could revolutionize driver interaction paradigms. The focus on combining voice and touch interfaces to enable multi-application tasks within a single conversational thread is expected to enhance safety and user experience. This could lead to a reevaluation of Volkswagen's innovation capabilities and influence investor confidence in the company's future direction.
Volkswagen will be the first automaker to deploy Cerence Chat Pro, which enables automakers to integrate ChatGPT with unmatched flexibility and customization
LAS VEGAS and BURLINGTON, Mass., Jan. 08, 2024 (GLOBE NEWSWIRE) -- Cerence Inc. (NASDAQ: CRNC), AI for a world in motion, and Volkswagen, one of the world’s largest automakers, today announced that they are partnering to deliver a uniquely intelligent, automotive-grade ChatGPT integration to Volkswagen drivers. Volkswagen will leverage Cerence’s new, generative AI-powered Cerence Chat Pro to enable drivers and passengers to engage the in-car assistant in fun and conversational chit-chat, leveraging a multitude of sources, including ChatGPT, to provide accurate and relevant responses to nearly every query imaginable.
Cerence Chat Pro is the fastest and easiest way for automakers to integrate ChatGPT into their in-car assistant platforms with full flexibility, extensive customization, and low integration effort. Volkswagen will be the first automaker to roll out Cerence Chat Pro via cloud updates to cars already on the road, delivering immediate value to drivers as they look to leverage generative AI for productivity and entertainment while on the go. Built specifically for the in-car experience, Cerence Chat Pro will go live in current MEB and MQB evo models from VW Group brands that use the IDA voice assistant1.
“With software at the core of the Volkswagen of the future, it’s critical that we quickly deploy meaningful innovation powered by advancements in AI,” said Thomas Ulbrich, Member of the Board of Management responsible for New Mobility at Volkswagen. “By leveraging Cerence Chat Pro, we are able to bring added value and a fun and engaging experience to our drivers with minimal integration effort and on a short development and deployment timeline, ensuring our customers are benefitting from new AI-powered conversational technology.”
"We’re proud to build on our automotive expertise and our long-term partnership with Volkswagen to continue to bring new innovation to customers, even post-vehicle purchase," said Stefan Ortmanns, CEO, Cerence. “It was impressive to see the agility and speed of the Volkswagen team as our companies collectively sprung into action to bring this project to life, marking our shared commitment to leveraging advancements in AI to enhance the in-car user experience”
Looking toward the future, Volkswagen and Cerence will explore collaboration to design a new, large language model (LLM)-based user experience as the basis of Volkswagen’s next-generation in-car assistant. This unique user experience will combine voice and touch, allowing users to perform tasks across different applications in a single conversational thread for a safer and more joyful driving experience. The system will be built on Cerence’s first-of-its-kind, automotive-grade LLM fine-tuned with the company’s extensive automotive dataset.
To learn more about Cerence, visit www.cerence.com, and follow the company on LinkedIn and Twitter.
About Cerence Inc.
Cerence (NASDAQ: CRNC) is the global industry leader in creating unique, moving experiences for the mobility world. As an innovation partner to the world’s leading automakers and mobility OEMs, it is helping advance the future of connected mobility through intuitive, AI-powered interaction between humans and their vehicles, connecting consumers’ digital lives to their daily journeys no matter where they are. Cerence’s track record is built on more than 20 years of knowledge and 475 million cars shipped with Cerence technology. Whether it’s connected cars, autonomous driving, e-vehicles, or two-wheelers, Cerence is mapping the road ahead. For more information, visit www.cerence.com.
Kate Hickman | Tel: 339-215-4583 | Email: kate.hickman@cerence.com
Footnotes
1. This feature is being considered for VW vehicles in the United States.
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