Deloitte Korea: Global Automakers Expected to Create $100 Billion in Value with Generative AI

"AI Utilization Strategies in the Global Automotive Manufacturing Industry" Report

Global automakers are accelerating their transition to manufacturing process innovation and customer-centric operations by adopting generative artificial intelligence (AI), creating an estimated value opportunity of approximately $7 billion (about 10 trillion won), according to a new analysis.

On September 29, Deloitte Korea Group announced, "We have published a report titled 'AI Utilization Strategies in the Global Automotive Manufacturing Industry,' which provides an in-depth analysis of how global automakers (OEMs) are leveraging AI." The report covers case studies from six OEMs: Germany's Mercedes-Benz, BMW, Volkswagen, and Japan's Toyota, Nissan, and Honda.

Generative AI Drives Cost Reduction and Value Creation Through Manufacturing Innovation and Operational Optimization

Global OEMs are facing structural risks such as rising costs across manufacturing, tightening environmental regulations, changing consumer demand, and a shortage of skilled labor. According to the report, these companies are maximizing operational efficiency through AI by automating production processes, enhancing quality precision, and minimizing equipment downtime through predictive maintenance systems.

As a result, OEMs that have adopted generative AI are projected to generate approximately $7 billion in value. Of this, cost reduction effects-such as automating repetitive tasks, reducing defect rates, optimizing inventory, and strengthening bargaining power with suppliers-are estimated at $770 million. Meanwhile, supply chain efficiency and increased revenue through the optimization of logistics, inventory, and pricing operations are valued at $6.32 billion.

Integration of Generative AI with Digital Twins, Humanoid Robots, and Smart Factories Accelerates Comprehensive Digital Innovation

Mercedes-Benz is maximizing productivity by integrating generative AI with digital twins and the humanoid robot "Apollo." This has more than doubled the speed of production facility transitions and reduced the new vehicle mass production preparation period by 30%. BMW has applied digital twins, AI, and robotics technology throughout its manufacturing processes, reducing production costs by 15-30% and defect rates by more than 20%. Volkswagen has established a digital twin platform that connects 120 factories and 1,500 partners worldwide, optimizing the layout of production facilities and work processes.

Toyota is pursuing manufacturing innovation by integrating advanced technologies such as AI, robotics, and digital twins. The company plans to use its smart city testbed, Woven City, which is currently under construction, as an experimental stage. Nissan is digitizing the skilled techniques and know-how of its "Takumi" (master craftsmen), automating precise and repetitive tasks through robots and AI systems, and enhancing its ability to respond to the production of various vehicle models. Honda has improved production efficiency and reduced labor input by 30% through computer vision-based quality inspection and robotics collaboration.

Deloitte is supporting companies in maximizing value by helping them innovate end-to-end (E2E) processes with generative AI and accumulate step-by-step achievements through its "String of Pearls" strategy, which organically connects various generative AI use cases. The adoption and expansion of AI can be pursued through a phased approach: exploration, value discovery (POC learning and standardization), and the deployment of trustworthy AI.

Kim Taehwan, Automotive Industry Leader (Partner) at Deloitte Korea Group Consulting Division, stated, "Global automakers are pursuing innovations ranging from process automation and quality improvement to operational efficiency and new business models through AI. Deloitte Korea Group will continue to actively support companies in developing actionable AI strategies and achieving tangible results." The full report is available on the Deloitte website.

This content was produced with the assistance of AI translation services.