Acceptence Process – M.SC.

International Management

Case Study

Impact of AI on daily business – Critical discuss by

means of the Automotive industry

Ruixuan Zhang
(BPP – Student at ISM Dortmund)

Dortmund den, 23.05.2021

 Contents

1. Introduction.....................................................................................................3
2. Artificial Intelligence in the Automotive industry...........................................3
2.1. Marketing..............................................................................................................4
2.2. Self-driving cars.....................................................................................................5
2.3. Increased production efficiency.............................................................................6

3. Conclusion....................................................................................................6
4. References....................................................................................................7
1. Introduction

The research field known as AI today was mainly founded by McCarthy 1988, Minsky 1985,
Newell, and Simon 1976. Here are some of their Definitions. From these different definitions,
what we define today as Artificial Intelligence emerged over time. So Artificial intelligence
technology is an advanced technology based on computer applications, which means that
computers 'own' human minds and can simulate, extend and expand human intelligence without
much human intervention, which can be considered a true machine automation. Replacing or
reducing human operations is the goal that people want to achieve with AI technology, and for
the time being, existing programming and simulation techniques fall far short of this goal.
Artificial intelligence goes beyond computers in a sense. (The New International Webster’s
Comprehensive Dictionary of the English Language, EncyclopedicEdition; IEEE Journal of Oceanic
Engineering (Volume: 13, Issue: 2, Apr 1988)). Nowadays, the popularly known AI technology is
robotics, which, after development, is actually a small AI application. For example, smartphones
have become an indispensable tool for life, VR games, driverless cars and voice assistants have
been integrated into people's daily lives, and in areas such as education, healthcare and the
home, artificial intelligence is overturning traditional lifestyles and creating a high quality life for
people. Elon Musk said in an interview in 2019: “Artificial intelligence should maximize human
freedom of action. But digital super intelligence should be produced very, very carefully because
it involves high risks. We need ethical rules in dealing with digital super artificial intelligence
because it is more dangerous than bombs. Artificial Intelligence should give our life more
possibilities and we should not use artificial intelligence for war, gaining power or manipulation.”
So we should invest in artificial intelligence as it will be indispensable in our future
and it will bring many opportunities for businesses. In the following we clarify how
artificial intelligence affects the automotive industry, both positive and negative
aspects of the most important areas in which artificial intelligence is used. "Artificial
intelligence (AI) poses a fundamental risk to the very existence of human civilization
in a way that car accidents, plane crashes, harmful drugs or bad food never have
been." (Elon Musk, CEO at Tesla, 2017)”. Tim Cook, CEO of Apple said 2017 during
an Interview “Artificial intelligence (AI) is so fundamental. We have come to a point
(...) that opens up possibilities for simply unbelievable things. We all have to make
sure that we are using AI for the benefit of humanity and not the other way around.”

2. Artificial Intelligence in the Automotive industry

Today, the automotive industry is moving towards intelligence and digitisation and is
currently undergoing a whole new transformation. Computer technology is constantly
evolving and leading the automotive industry towards information technology. It is
evident that there is a very clear integration between modern automotive
manufacturing and computer technology, which has led to a new innovation in the
automotive industry. The development of artificially intelligent platforms not only

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brings convenience to people's daily lives, but also brings more scientific and
advanced information technology to the automotive industry. Artificial intelligence
has brought many new experiences in the development of automotive manufacturing
technology, and the following are three major applications of artificial intelligence in
the automotive industry.
2.1. Marketing

Big data technology can now assist car companies in placing accurate advertisements by
classifying the sales leads recovered from the advertisements and then calculating the
preferences and needs of the users using algorithms and then targeting them with marketing
content. Artificial intelligence can simply calculate consumer segments and then deliver different
marketing campaigns to different consumer segments, making the campaign more effective. In
the past, every aspect of consumer demand research, ad creation, ad placement, data collection,
in-store sales and service, delivery and after-sales can be done manually, based on data and past
successes, to create an AI decision-making system. This unifies marketing and sales and greatly
improves marketing efficiency. It can be said that every automotive-related industry that expects
to gain users, fans and traffic from the Internet can gain an advantage over their competitors by
building their own AI marketing systems. (Dastani Consulting 17.01.2028 “KI basierter Verrieb in
der Automobilindustrie”; Michaela Tiedemann, 19. November 2019, AI in Automobilbranche).

Demand research, after-sales tracking and advertising creative still need to be done manually,
which is not only inefficient but also highly emotive. Using artificial intelligence to effectively
integrate this data and intelligently analyse shop sales data, customer segments and transaction
numbers will not only improve effectiveness but also reduce costs. Artificial intelligence can also
be used in the after-sales service of the supply chain, because the traditional 24-hour manual
customer service not only requires a lot of human and financial resources, but also does not
guarantee that each customer's after-sales needs can be solved when facing multiple customers
who need after-sales service. This saves a lot of time for the company and provides a good
shopping experience for every customer. In the supply chain, for small-scale manual deployment,
manpower can be used to solve the problem, but if you encounter a large amount of data to be
solved, it is more difficult to solve the problem by manual means alone, so you must use artificial
intelligence technology to integrate inventory, logistics data and procurement materials together,
so that the problem can be solved faster.

Disadvantages in marketing when using artificial intelligence. With simple, uncomplicated

chatbots in particular, users quickly realize that they are not communicating with a real person.
This can sometimes make them feel unappreciated. Anyone who has already had to click through
hotline menus in order to ultimately speak to a robot knows how frustrating that can be.
Therefore, chatbots should be used with care based on their target audience and supported by a
living human as often as possible. Another disadvantage is that artificial intelligence (AI)
algorithms can also be wrong. It is hard to imagine that a computer could be wrong -
mathematically or in terms of formulas, they may always be “correct” - but there is so much
more to humans than formulas and statistics. It is unique, has different tastes and preferences
that cannot be reduced to a single formula. What makes us human is the fact that we are

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constantly changing. This is difficult for an AI to imitate. Even the entrepreneur Elon Musk
suggests regulating artificial intelligence (AI) because, in his opinion, it can pose certain threats.

2.2. Self-driving cars

Driverless as a kind of ahead of its time in the field of artificial intelligence, to a certain extent,
affects the development direction and trend of the entire automotive industry, it can ensure the
safe driving of vehicles without human control and operation, the use of also artificial intelligence
in the cloud platform and big data processing and calculation of natural advantages, in the
current this technology has also been achieved, autonomous driving will become the mainstream
and trend of the future automotive field, driving a series of directions in the field of artificial
intelligence. Through artificial intelligence to achieve autonomous driving of vehicles, it can
relieve drivers' travel pressure and reduce fatigue driving and traffic accidents. Sensing
technology systems and artificial intelligence can ensure safe driving of vehicles, through sensors
to achieve vehicle direction and braking performance, artificial intelligence systems for GPS
positioning, navigation and other functions. Secondly, human-vehicle interaction technology can
monitor traffic accidents caused by human factors and reduce the chances of traffic accidents. To
a certain extent, traffic accidents can be avoided by prompting drivers to take a break when they
are driving fatigued or according to their emotional condition. Vehicle-vehicle interaction
technology can sense danger based on the monitored position and speed of surrounding
vehicles, prompting drivers to avoid vehicles and sensing road traffic conditions.

The social credibility challenge of AI technology and its use in self-driving cars. According to social
research, around 1.3 million people are killed in traffic accidents worldwide every year. This
shows to some extent that traffic accidents are a serious threat to people's lives and property, so
it is questionable whether driverless cars will be accepted in this context. Others generally
believe that driverless cars are less safe and may increase the threat of the road. In reality,
however, self-driving cars combined with artificial intelligence technology can greatly improve
driving safety because artificial intelligence technology does not cause fatigue, whereas human
drivers suffer from driving fatigue. To gain social acceptance of AI technology and self-driving
cars, it is important to dispel consumer misconceptions about autonomous driving and to actively
build consumer confidence in autonomous vehicles. There are also deficiencies in the application
of technology. The shortcomings in the application of driverless car technology are mainly
manifested in two ways: firstly, the immaturity of the driverless technology itself. The
environment is judged by radar and photoelectric detectors, and the environmental information
is transmitted to the core chip for processing and planning. In this process, driverless cars go
through a lot of scenario simulations and the detectors are risk-free under ideal conditions.
However, in real life, road conditions are very complex, for example, when traffic police use hand
signals to instruct vehicles to move, especially when these hand signals conflict with traffic lights
or stop signs, this will challenge the driverless car's own judgement, and if it does not handle the
situation properly, a traffic accident may occur. Secondly, malfunctions are inevitable in
automated driving systems, and when they do occur, they can be more dangerous than failures in

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manual driving. Furthermore, there is still an ethical dilemma. Driverless cars in the context of
artificial intelligence are completely free from manual driving. The driverless car can now drive
autonomously in some road conditions, and the vehicle's autonomous driving system can then be
regarded as an AI-based system. [14] The judgements made by AI are mostly based on computer
algorithms and do not include ethical and moral requirements or the emotions that humans
possess. Therefore, when driverless cars are caught in an ethical dilemma, it becomes a challenge
to choose between different lives. In Philippa Foot's famous 'tram dilemma' thought experiment.
A similar problem may arise when a smart car is in motion, for example, when the vehicle is out
of control and inevitably causes significant damage. How should the choice be made between the
objects of damage? How should these imaginary objects be ranked. In human society, however,
human driving is subject to the law, public opinion and self-interest, emotions and other factors.
From this perspective, it is necessary to consider how to design objective ethical criteria for
decision-making by driverless cars, which are not interfered with by these factors when faced
with sudden and unexpected situations that require instantaneous reaction.

2.3. Increased production efficiency

The first applications of robotics were in simple primary installations in automotive production
lines. With the maturity and stability of artificial intelligence technology in recent years, robotics
has become more widely used and more flexible in the automotive manufacturing industry, and
has achieved a high level of precision in mounting, welding and gripping. The robotic arm, which
is an important part of the robot, has not only improved its own precision through continuous
improvement and learning by its own computer, but has also achieved the collaboration of
multiple robotic arms and flexible production, which greatly improves and guarantees the quality
of the car.

It also brings Problems As well as Challenges. As a technological advancement, artificial

intelligence technology brings new opportunities for socio-economic development, but it also
brings unemployment. Globally, the use of AI technology has had an impact on labour
employment. On the one hand, advances in AI technology have increased labour productivity and
jobs are being squeezed by AI technology, resulting in technological unemployment. On the other
hand, AI technologies have a job-creating effect on employment. In the automotive
manufacturing industry, for example, intelligent equipment and robots will be used in large
numbers in the future, significantly reducing the number of workers in the original industry chain
and creating a surplus of labour, resulting in widespread unemployment. However, the
introduction of AI equipment will also require technical development, operation and
maintenance personnel to support AI and create new jobs. The creation of new types of jobs will
actually increase the efficiency of production and operation of manufacturing enterprises, reduce
costs and increase the income of personnel in the history of human development.

3. Conclusion

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As the economy continues to develop, artificial intelligence technology is becoming more and
more sophisticated and is already being used in various industries. The combination of artificial
intelligence platforms and the automotive industry can improve the development of the
automotive industry and make it more intelligent and systematic in the production process. As
artificial intelligence platforms are used in the automotive industry, they have become an
indispensable enabler, bringing new opportunities for the development of the automotive
industry. But inevitably, it also poses certain dilemmas. In the face of the problems arising from AI
technology, we should treat them correctly and not be overly alarmed and strongly resist them,
nor should we accept them in their entirety. The development of AI technology in today's society
is stable, safe and controllable.
Keep in mind, however, that AI is an emerging technology. As such, it is changing at a fast pace
and may present some unexpected challenges.

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