GM wants its own AI layer after shipping Gemini to cars
AI-summarised from reporting by Cryptopolitan. How we use AI.
What happened
General Motors (GM) is making significant strides in integrating artificial intelligence (AI) into its vehicles, with a two-pronged strategy that began with the rollout of Google Gemini to millions of cars earlier this year. This initial integration, affecting roughly four million Cadillac, Chevrolet, Buick, and GMC vehicles from model year 2022 onwards in the United States, allowed for conversational AI capabilities, including natural language commands for temperature control and radio functions. The Gemini integration was presented as a foundational step.
Building on this, GM is preparing to launch its own proprietary in-vehicle AI assistant later this year. This new system is designed to go beyond the general-purpose functions of Gemini, leveraging GM's extensive vehicle knowledge and OnStar intelligence. While the specific product name and the large language model provider remain undisclosed, the organisation aims to develop features like predictive maintenance, telemetry monitoring, and a 'kid's mode' that can manage various in-car settings simultaneously. This move highlights GM's ambition to create a deeply integrated AI experience, extending its digital services ecosystem.
Why it matters for Australian investors
For Australian investors, the advancements in automotive AI, particularly from a major global manufacturer like GM, signal a broader trend towards enhanced digital services and data monetisation within the automotive sector. While GM's initial Gemini rollout primarily targeted the US market, the underlying technology and business models have global implications. As these advanced AI systems become more prevalent, they will influence the development and features of vehicles available in Australia, potentially impacting consumer preferences and the competitive landscape for local automotive retailers.
The increasing reliance on data for these AI systems, particularly through telematics services like OnStar, also introduces considerations around data privacy and regulation. Australian investors should monitor how such data-driven services are received and regulated internationally, as similar frameworks could eventually emerge from bodies like AUSTRAC or ASIC regarding the collection and use of vehicle data. The potential for new revenue streams from digital services, as evidenced by GM's reported 20% growth in this area, could offer opportunities for investors in companies providing AI solutions, telematics, or related software and hardware.
Impact on the AUD market
While GM's direct automotive sales in Australia have evolved significantly, with brands like Holden no longer manufacturing locally, the broader implications of this technological shift can still resonate within the AUD market. Australian consumers are increasingly tech-savvy, and the expectation for advanced in-car features, including sophisticated AI assistants, will likely grow. This could influence the import market for vehicles and create demand for local businesses that can support or integrate with these advanced systems.
The development of deeply integrated AI, especially that which leverages vehicle telemetry, has potential flow-on effects for related industries in Australia. For instance, the growth in predictive maintenance capabilities could alter the landscape for automotive servicing and parts suppliers. Furthermore, as data becomes a central component of these new automotive ecosystems, Australian companies involved in cybersecurity, data analytics, or even those developing localised AI models could see increased demand. Investors in these adjacent sectors might find opportunities as the global automotive industry continues its digital transformation.
What to watch next
Investors should closely observe the actual deployment and user adoption of GM's proprietary AI assistant later this year. Key areas to monitor include the specific functionalities offered, the level of integration with vehicle systems, and crucially, how GM addresses data privacy concerns, particularly in light of past scrutiny regarding OnStar data sharing. The success of this homegrown AI will provide insights into whether a deeply embedded, manufacturer-specific AI can offer a significant competitive advantage over more general-purpose AI solutions from tech giants.
Furthermore, keep an eye on how other major automakers, some of whom are partnering with different AI providers like Stellantis with Mistral AI or Mercedes with ChatGPT, evolve their strategies. The race to dominate in-car AI is heating up, and the varied approaches taken by manufacturers will demonstrate which models resonate most with consumers globally, including in Australia. Finally, watch for any regulatory developments, particularly concerning data governance, that might emerge from Australian bodies such as the ATO regarding the classification of digital services revenue, or ASIC concerning consumer protection in these new digital automotive ecosystems. These developments will shape the future investment landscape in this rapidly evolving sector.
Common questions
How does AI in cars affect vehicle depreciation in Australia?
The impact of advanced AI on vehicle depreciation in Australia is a developing area. As AI features become more standard and sophisticated, vehicles with outdated or less capable AI might depreciate faster. Conversely, cars with cutting-edge, updateable AI systems could potentially retain value better, depending on consumer demand and the perceived long-term utility of these features. However, factors like overall market conditions, vehicle condition, and brand reputation still play a significant role.
Will my Australian car insurance be affected by in-car AI and telemetry data?
It's a complex area that Australian insurance providers are still navigating. While in-car AI can theoretically enhance safety, telemetry data (like that from OnStar) could also provide insurers with detailed insights into driving behaviour. If insurers gain access to this data, it could potentially lead to more personalised premiums, which might be lower for safe drivers but higher for those deemed high-risk. However, stringent privacy regulations in Australia would likely govern the use and sharing of such data, requiring explicit consent from the driver.
Are there any Australian companies developing their own in-car AI systems?
While major global automakers are leading the charge in developing proprietary in-car AI, Australian companies are more likely to be involved in providing components, software, or services that integrate with these global systems. This could include specialised sensor technology, data analytics platforms, cybersecurity solutions for connected vehicles, or localised mapping and navigation services. Direct development of full in-car AI platforms by Australian automotive manufacturers is less common given the scale of investment required by global giants.
GM is rolling out its own AI assistant after Gemini integration. Discover what this means for Australian investors, the AUD market, and future automotive tech
About this article: this is an AI-generated summary of reporting by Cryptopolitan. It has not been reviewed by a human editor. We use AI to localise crypto news for Australian readers, and we link back to the original source so you can verify the facts.
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