BMW is moving beyond the software-defined vehicle era and toward what it calls AI-defined vehicles, a shift that could change how the automaker develops cars and organizes its business. The company is expanding artificial intelligence across vehicle development, manufacturing and other areas as it targets more agile development and faster decision-making.
BMW Expands AI Across Vehicle Development
As cars become increasingly digital, physical connections are becoming less necessary than they once were. The rise of software-defined vehicles, or SDVs, has accelerated vehicle development, with the Chinese auto industry cited as a prominent example of how quickly new vehicles are being produced.
BMW now appears ready to move into the next stage with AI-defined vehicles. The company says the change will affect both the way it builds cars and the structure of the BMW Group itself, with the effects potentially becoming visible during the next-generation model cycle.
AI Aims to Make BMW More Agile and Efficient
BMW is among several legacy automakers increasing their use of AI. Nissan, for example, optimized AI for the next-generation Skyline and Infiniti Q50, helping drive their rapid development.
BMW plans to apply AI more broadly across its operations. “Consistent use of agentic AI applications across all areas of the company will be a game-changer for more agile and efficient development, leaner structures and faster decision-making,” BMW CFO Walter Mertl said.
The automaker already uses AI in manufacturing, supported by standardized IT and data models and intelligent systems across nearly every stage of production. Its next objective is to enhance AI agents so they can take on more challenging tasks, including work involving production robots that BMW has previously shown.
AI Could Support the Entire Vehicle Development Process
BMW also intends to expand AI deeper into the core vehicle development process. While AI was previously used for individual applications, the company wants it to help accelerate development while allowing BMW to respond more quickly when changes are required.
The goal is an AI system capable of providing end-to-end support. That could include handling initial technical requirements, virtual road tests, crash testing and even release.
Human oversight will remain part of the process. Developers will track the system’s actions until its work is eventually approved.
BMW Plans Workforce and Management Changes
The broader AI push will also come with changes to BMW’s workforce structure. The BMW Group reached an agreement with its Works Council in July concerning redundancies, and a voluntary severance package will be offered.
According to the company, “By the middle of next year, the BMW Group will reduce the number of divisions and associated management roles by 20%, with a comparable reduction at the organisational levels below.”
The changes will include significant streamlining and adjustments in Munich as BMW moves toward its AI-defined vehicle strategy.
