Artificial intelligence (AI) could give automakers something they have spent years trying to build: a way to keep making money from a vehicle long after it leaves the dealership. Ford and General Motors (GM) are both betting that an AI assistant tied to a vehicle’s data can keep that relationship, and the revenue, going long after the sale. Ford is rolling out an AI assistant through the Ford and Lincoln owner apps, reaching 8 million eligible vehicles after an initial launch earlier this year, Ford President of Integrated Services Mike Aragon said in the company’s Aug. 10 blog post. The assistant connects to a vehicle’s real-time data to answer questions about tire pressure, oil life and fuel level. An in-vehicle version is planned for 2027. The assistant sits inside Ford’s existing connected-services infrastructure, the same digital relationship customers already use to activate, buy and cancel services tied to their car’s own vehicle identification number, such as BlueCruise, ensuring the offer and pricing match that specific vehicle rather than a generic account. The Subscription Numbers Already Explain Why Ford CEO Jim Farley told analysts on the company’s second quarter earnings call on July 28 that paid BlueCruise subscriptions grew 20% during the quarter, and that BlueCruise now accounts for 50% of Ford’s retail Integrated Services revenue. Ford Pro Intelligence subscriptions surpassed 900,000, also up more than 20% year over year, and Farley said Ford could see Integrated Services contribute roughly half a percentage point to the company’s overall margin. Ford has not said it will charge separately for the new AI assistant. The value instead comes from making paid services easier to discover and renew, since an owner asking about a vehicle capability is already expressing exactly the kind of intent an AI system could connect to an eligible feature or
AI Is Opening New Revenue Streams for Automakers | PYMNTS.com
Read the original article
pymnts.com →