ChatGPT as Job, Value Creator

Every trade show I attended in 2023 inevitably turned to the topic of artificial intelligence generally and generative AI, in particular, in the wake of the introduction of ChatGPT by OpenAI earlier last year.? From RadioDays Europe in Malmo, where Futuri Media demonstrated AI radio jocks, to IAA Mobility in Munich where AI was touted as the grease that would lubricate the entire automotive sector from design studios to factory floors to dealerships - executives successfully argued that generative AI will create jobs and value.

In a few short months, the scare AI-as-job-killer headlines are gone.? Instead of eliminating jobs, large language models (LLMs) such as ChatGPT will create jobs as auto makers and others lean in to extract value from this new solution throughout organizational value chains.

In the automotive industry a normally restrained General Motors leaped to the head of the line announcing its intention to integrate ChatGPT in all its cars.? Competitors followed.

But rushing ChatGPT into cars is only the most obvious application, not the most compelling.? At IAA, Nvidia, Google, Microsoft, AWS, and others lined up to proclaim their ability to leverage generative AI to accelerate vehicle design and development, production, marketing, sales, and even personnel hiring.

The drive to integrate generative AI into cars is hard to resist. According to multiple media reports, OpenAI is planning to launch next week an online store allowing consumers to create and share custom versions of the ChatGPT chatbot.? This report comes on the eve of CES 2024 (next week in Las Vegas) where TomTom is poised to announce a voice assistant collaboration with Microsoft, Cerence will announce a partnership with Nvidia to introduce the Cerence Automotive Large Language Model (CaLLM) to cars, and Mercedes can be expected to demonstrate its own ChatGPT beta reportedly already in use with some existing Mercedes Benz owners.

The Verge reports: “OpenAI originally said it planned to introduce a store later in November where people could find tailored chatbots from other users — and make money from their own — much as they might with apps in Apple’s App Store. OpenAI later delayed the rollout of the online store to early 2024.”

For auto makers seeking to enhance the in-vehicle experience the objective will be to plug in-vehicle voice assistants into LLM backends or to create on-board LLM-lite models capable of functioning without access to the Internet.? Both propositions will be expensive either in the cost of wireless connectivity or the investment in on-board processing.

The arrival of LLM solutions from OpenAI and others opens the door wide to a host of solution developers from Cerence and SoundHound to Inpris, P3, and every major Tier 1 from Continental and Harman to Bosch, Aptiv and the rest to say nothing of the leading SoC suppliers plus Amazon, Google, and Apple.? In other words, the arrival of generative AI in the automotive industry is a clarion call to one and all to participate and innovate.

For their part, auto makers from GM to Stellantis, Mercedes-Benz, BMW and others are staking their claims to technology leadership with concepts and demonstrations – some of which will be at CES.? The challenge lies in the fact that consumers, generally, have only begun using voice interfaces with their phones within the past 10 years.? In-vehicle voice assistants have begun to catch on but the market is fragmented and poorly defined.

Cerence describes the target applications clearly enough as “supporting automotive functions, features, and requirements” and enabling customizable “training, fine-tuning, and bespoke applications.”? The primary use case is information retrieval (related to vehicle functions) as well as contextual assistance for navigation, traffic, weather, parking, charging, in-car commerce, etc.

Generative AI tech arrives just as natural language understanding (NLU) has begun to proliferate in cars such as those from Stellantis, Mercedes, and Hyundai equipped with SoundHound. These embedded solutions allow users to make voice requests without having to adher to strict protocols - i.e. "Take me to the nearest gas station."

Generative AI promises to be able to process more complex requests such as "Take me to the nearest Chinese restaurant with convenient parking (or nearby EV charging." The prospect is exciting but building the back-end model will be challenging as will educating consumers and - dare I say it - dealers.

The key is to deliver an in-vehicle voice assistant that is tuned to automotive applications - not just the same Alexa/Siri/Google Voice solution in your smart speaker or smartphone. It won't be simple, easy or cheap.

The potential for a distracting or embarrassing launch that frustrates customers is real.? Also, there is a limit to how much more consumers will be willing to pay for a clever voice assistant in their car.

General Motors may be short-circuiting customer resistance with its plans to offer Google Voice Assistant for free for eight years in select 2024 car models.? Presumably such service will require an OnStar subscription – but maybe this marks the redefinition of what connectivity means to consumers.

The market for in-vehicle assistants today encompasses Amazon’s Alexa, Apple’s Siri, Cerence, SoundHound, Inago, and Google Voice.? OpenAI’s ChatGPT promises to disrupt this landscape but not without further refinement and the definition of new connected car business models.

General Motors gave the industry a hint of what is at stake with its Buick “Alexa” television advertisements that seemed to shift the brand recognition associated with the car away from the Buick brand and toward the Alexa voice assistant.? Those Buick commercials seemed both weird and potentially scary at the time.

The ultimate objective, though, is the realization and recognition of the car as a browser. The voice interface in the car will increasingly serve as the de facto search engine wherein lies extraordinary value creation and monetization opportunities. That is sure to get the juices flowing and certainly won't be a job killer.