Smart Cars: How Artificial Intelligence Is Changing the Car Market

New technologies are not only changing cars, transplanting users from gasoline-powered “wagons” to electric cars. They are changing the car market itself, allowing manufacturers to save money and creating new threats for them.

The development of auto industry solutions based on machine learning and artificial intelligence algorithms is now focused mainly on the future of drones. However, the practical application and cost-effectiveness of this can already be seen today.

Smart Cars: How Artificial Intelligence Is Changing the Car Market


Artificial intelligence technologies can maximize the personalization of the car rental service offered by companies such as Services focused on the personalization of the car will develop its interactive component: a specific color and model of the rental car will be selected for the user, the favorite music will be played in the cabin, and the navigator will know where the user’s home and work is to the closest rental service.

In addition, artificial intelligence can contribute to the actual distribution of cars for rent in areas of the city, depending on the day of the week or time of day. Machine learning can predict user behavior and suggest optimization of car locations. And someday, rented cars in drone mode will even be able to drive themselves to the most in-demand areas at the right time.


Thanks to artificial intelligence and machine learning, cars will adapt to the driving style, the owner’s reactions, and the way they use the vehicle’s functionality. It’s important for automakers to retain the customer, so they will turn to analytics more often, including real-time analysis. It is important to understand which features are used more often by customers, because each, even an inexpensive detail in a car, multiplied by tens of thousands of cars produced, can affect the financial result of the manufacturer. When making money on additional options, you need to understand which of the available features in the current variants of the car are most in demand.

If we know that Kia Rio customers can’t live without a voice assistant, we can put that option in another car as well, making it a competitive advantage. Some local automakers, using data analysis, are already selling very “stuffed” cars because they know what the potential owner expects from the car.

For example, one Middle Eastern automaker, before launching a new series of cars on the market, asked for a region-by-region specification of the speed shifters used by drivers in the previous series. They were the default in all previous models, and the option cost a pretty penny. According to the information received, less than 1% of car owners in that region used the paddle shifter feature. As a result, the decision was made to eliminate it without fear of diminishing customer loyalty.


Artificial intelligence today is not just changing the car business, it is changing the car itself, and it is doing it quickly. To develop in the car market, players not only need to implement artificial intelligence solutions or develop their own but also think about timing. To close the gap between their own results and the achievements reported today by global technology players (Google, Tesla, Uber), it is necessary to unite either among members of the same market group or cooperate with IT solution providers.

Bibliography ► (June 21, 2022). Smart Cars: How Artificial Intelligence Is Changing the Car Market. Recovered from