The Volkswagen Group is making a major bet on AI—committing up to $1.2 billion in investment by 2030.
The details: VW unveiled the plan on the opening day of the IAA auto show in Munich, outlining how it expects AI to accelerate speed, improve quality, and sharpen competitiveness across the business—with the following goals.
Accelerating development processes for new vehicles and technologies.
Expanding and strengthening its European IT infrastructure against outside risks.
Driving efficiency gains and creating opportunities for cost avoidance.
What they’re saying: “With artificial intelligence, we are igniting the next stage on our path to becoming the global automotive tech driver," said Hauke Stars, member of the Board of Management for IT at the Volkswagen Group. "AI is our key to greater speed, quality, and competitiveness – across the entire value chain, from vehicle development to production.”
Hauke Stars
Why it matters: VW is under pressure to improve profitability and adapt quickly to shifting industry dynamics, and AI could play a central role in bolstering margins and resilience as the company refines its operations.
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Between the lines: The $1.2 billion strategy builds on VW’s existing base of more than 1,200 AI applications, with several hundred more in development or nearing rollout.
One initiative includes an AI-powered engineering environment developed with Dassault Systèmes, designed to aid engineers through virtual testing and component simulations.
Another AI-based program consists of a “factory cloud” linking more than 40 VW group sites, where new AI-driven processes are regularly integrated into manufacturing.
“Our ambition is to accelerate our development of attractive, innovative vehicles and bring them to our customers faster than ever before,” said Stars. “To achieve this, we deploy AI with purpose: scalable, responsible, and with clear industrial benefits. Our ambition: No process without AI.”
Bottom line: By embedding AI into development, production, and IT, VW is aiming to shorten time-to-market, reduce costs, and strengthen resilience—critical steps as the company seeks to streamline operations and emerge leaner, faster, and more competitive.
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