What “Software-Defined, AI-Powered” Actually Means The phrase software-defined vehicle gets used loosely, so it is worth being precise about what it covers.
PwC’s automotive AI investment outlook puts a figure on how far the industry has already committed: nearly $110 billion invested in AI by the automotive sector since 2021.
Historical Context: From Connected Cars to Code-First Platforms The software-defined vehicle idea did not appear overnight in 2026.
How is a software-defined vehicle different from a connected car?
A software-defined vehicle goes further, allowing core vehicle behavior, including systems like braking, battery management, and driver assistance, to be updated or changed after the vehicle leaves the factory.