

There are many indications that the future lies in technology. Specifically, it belongs to connected and autonomous vehicles(CAVs), which, combined with 5G, AI, and machine learning, will form the backbone of the smart cities of the future. How will data from vehicles revolutionize city life as we've known it so far?
The UN estimates that by 2050, about 68 percent of the global population will live in urban areas. This raises challenges that we are already trying to address as a society.
Technology will significantly support connected, secure, and intelligent vehicle communication using vehicle-to-vehicle (V2V), vehicle-to-infrastructure (V2I), and vehicle-to-everything (V2X) protocols. All of this is intended to promote better management of city transport, fewer delays, and environmental protection.
This is not just empty talk, because in the next few years 75% of all cars will be connected to the internet, generating massive amounts of data. One could even say that data will be a kind of "fuel" for mobility in the modern city . It is worth tapping into this potential. There is much to suggest that cities and municipalities will find that such innovative traffic management, routing, and congestion reduction will translate into better accessibility and increased safety. In this way, many potential crises related to overpopulation and excess of cars in agglomerations will be counteracted.
Data from connected cars, in conjunction with Internet of Things (IoT) sensor networks, will help forecast traffic volumes. Alerts about traffic congestion and road conditions can also be released based on this.

High-Performance Computing and high-speed transmission platforms with industrial AI /5G/ edge computing technologies help, among other things, to efficiently control traffic lights and identify parking spaces, reducing the vehicle’s circling time in search of a space and fuel being wasted.
Real-time processed data can also be used to save the lives and health of city traffic users. Based on data from connected cars , accident detection systems can determine what action needs to be taken (repair, call an ambulance, block traffic). In addition, GPS coordinates can be sent immediately to emergency services, without delays or telephone miscommunication.
Such solutions are already being used by European warning systems, with the recently launched eCall system being one example. It works in vehicles across the EU and, in the case of a serious accident, will automatically connect to the nearest emergency network, allowing data (e.g. exact location, time of the accident, vehicle registration number, and direction of travel) to be transmitted, and then dial the free 112 emergency number. This enables the emergency services to assess the situation and take appropriate action. In case of eCall failure, a warning is displayed.
Less or more sustainable car traffic equals less harmful emissions into the atmosphere. Besides, data-driven simulations enable short- and long-term planning, which is essential for low-carbon strategies.
Research clearly shows that connected and automated vehicles add to the comfort of driving. The more such cars on the streets, the better the road capacity on highways.
As this happens, the travel time also decreases. By a specific amount, about 17-20 percent. No congestion means that fewer minutes have to be spent in traffic jams. Of course, this generates savings (less fuel consumption), and also for the environment (lower emissions).
Intelligent traffic management systems (ITS) today benefit from AI . This is apparent in the Chinese city of Hangzhou, which prior to the technology-transportation revolution ranked fifth among the most congested cities in the Middle Kingdom.
Data from connected vehicles there helps to efficiently manage traffic and reduce congestion in the city's most vulnerable districts. They also notify local authorities of traffic violations, such as running red lights. All this without investing in costly municipal infrastructure over a large area. Plus, built-in vehicle telematics requires no maintenance, which also reduces operating costs.
A similar model was compiled in Estonia by Tallinn Transport Authority in conjunction with German software company PTV Group. A continuously updated map illustrates, among other things, the road network and traffic frequency in the city.
Estimated downtime costs for high-utilization fleets, such as buses and trucks, range from $448 to $760 daily . Just realize the problem of one bus breaking down in a city. All of a sudden, you find that delays affect not just one line, but many. Chaos is created and there are stoppages.
Fortunately, with the trend to equip more and more vehicles with telematics systems, predictive maintenance will be easier to implement. This will significantly increase the usability and safety of networked buses . Meanwhile, maintenance time and costs will drop.

Connected vehicle data not only make smart cities much smarter, but when leveraged for real-time safety, emergency planning, and reducing congestion, it saves countless lives and enables a better, cleaner urban experience – said Ben Wolkow, CEO of Otonomo.
The digitization of the automotive sector is accelerating the trend of smart and automated city traffic management. A digital transport model can forecast and analyze the city’s mobility needs to improve urban planning.

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Accidents, traffic congestion, lack of parking lots and poor state of roads. These are the 4 Horsemen of the Road Apocalypse that on occasion haunt cities around the globe. Have they come to settle in the largest agglomerations for good? Can AI in transportation combat them and make mobility smoother, more comfortable, and safer? Practical solutions introduced by the biggest transport companies from all over the world show that it is possible. And we do not have to wait for fully self-driving cars to use the advantages of AI. The changes are happening right before our eyes.
In 1900, the number of vehicles in the USA - the only country that produced cars at the time - reached 4192 vehicles. Today, the number of motor cars is estimated to be around 600 million, and with the current growth in production, this number is expected to double in the next 30 years. Our cities are congested, polluted and in many places getting around in a car during rush hour borders on the miraculous. Not to mention the real endurance test that drivers' nerves are put to.
Government agencies and shipping companies must explore solutions that reduce the number of vehicles in cities and equip urban infrastructure and cars with tools that effectively offset the side effects of technological globalization. The Internet of Things and artificial intelligence are coming to the rescue to facilitate a new class of intelligent transportation systems (ITS), not only for automotive but also for rail, marine, and aircraft transportation.
By analyzing massive amounts of data from vehicles and connecting the road infrastructure into a seamless network of information exchange , many aspects of transportation can be successfully addressed. The benefits of using AI in this market area are not only for cities and drivers but also for transport companies, pedestrians, and the environment. The whole transport ecosystem benefits from it, not just one of its constituent parts. We should all care about the development of these technologies and the broadest possible use of them in transport.
Thanks to the above-mentioned technologies, new trends are developing, such as micro-mobility, shared mobility or, especially in the Netherlands and Scandinavia, the idea of mobility-as-a-service (MaaS), which encourages drivers to give up their own vehicle and exchange it for one in which transport is provided as a service.
According to Market Data Forecast, the global transportation AI market will be worth around $3.87 billion by 2026 and is estimated to grow at a CAGR of 15.8% between 2021 and 2026. And it's no wonder that more and more businesses are embracing these solutions. The benefits of using AI technology in transportation are truly far-reaching and, indeed, their future is looking bright. With the development of data analytics and more modern sensors gathering information, new and innovative applications are bound to emerge.

When talking about using AI in transportation, self-driving cars are the most often mentioned examples that stir the imagination. Although such solutions have already been tested on the city streets (e.g. Waymo and Cruise in California) and occasionally we hear news about reaching by the manufacturer the highest (5th) level of automation, we are still a little away from the dissemination of vehicles that do not need any attention of the driver.
The main challenges faced by autonomous driving remain unchanged. First, detection of objects on the road and their categorization, and second, making the right decisions by the neural network, decision tree, or, in most cases, complicated hybrid model.
In 95% of cases, the neural network controlling the vehicles is already behaving correctly and making the best possible decisions. But there is still a marginal 5%, and this level is the most difficult to achieve at the moment. It simply takes time and more data to "train" a neural network. With the dropping price of LIDARs [light detection and ranging sensors], high resolutions camera, and the computing power of the GPUs [graphic processing units] increasing, it is only a matter of the next few years before this barrier is overcome - first in limited controlled areas (e.g. factories and harbors), the form of autonomized truck transport, and then using city vehicles.
Meanwhile, there are already more than a dozen advanced technologies on the road today that are taking advantage of the AI ‘’goodies’’ and changing the way we control vehicle flow, driver safety, and driving behavior. Let's take a closer look at them.
If traffic regulations were boiled down to one simple rule that even a few-year-old child could understand, red and green lights would definitely be second to none. Meanwhile, there are hundreds of road accidents each year related to running the red light and not stopping the vehicle at the right moment. Many factors contribute to this, such as driver fatigue, inclement weather, misuse of cell phones while driving, or simply rushing and time pressure.
People make mistakes and always will, these cannot be avoided. However, we have started to teach the machine to recognize traffic lights and eradicate such mistakes (the first attempts were made by BMW and Mercedes). With this technology, the braking system will react automatically when the driver tries to run a red light, and thus we can prevent disaster.
The unpredictability of pedestrians and their different behavior on the road is one of the main factors holding back the mass introduction of autonomous cars. Thanks to computer vision, AI already recognizes trees, unusual objects, and pedestrians without much of a struggle, and can warn drivers of a human approaching the roadway. The problem arises when a pedestrian is carrying groceries, holding a dog on a lead, or is in a wheelchair. Their unusual shape increases the difficulty for the machine to properly identify a human. Although it must be admitted that by using various object detection functions - based on motion, textures, shapes, or gradients - it is practically 100% successful.
However, the pedestrian's intention still remains a great challenge. Will he or she step onto the road or not? Are they only walking by the side of the road, or do they intend to cross it? These elements are always ambiguous and a neural network is needed to predict them effectively. To this end, the human pose estimation method comes in handy. It is based on the dynamics of the human skeleton and is capable of predicting human intentions in real-time.
Noise, smog, clogged city arteries, stressed drivers, economic losses, greenhouse gas emissions - traffic congestion and vehicle crowding in cities give rise to numerous undesirable phenomena. AI can effectively help counteract all of them and make transportation much more efficient and convenient.
By relying on in-vehicle sensors, municipal CCTV cameras, and even drones to monitor vehicle flow, the algorithms can watch and keep track of the traffic both on highways and in the city. This allows them to warn drivers of potential congestion or accidents and direct the flow of vehicles in an efficient manner. It is also invariably useful for the town and urban planners involved in constructing new roads and improving the city's infrastructure. With prior traffic analysis and the vast amount of data available, AI can identify the best planning solutions and help reduce undesirable situations right at the planning stage.
On a macro scale AI can help us change the entire road network, and on a micro-scale- a single intersection or traffic circle that needs repair. The analysis of the material provided by intelligent algorithms can calculate the trajectory of vehicles entering the bend, analyze the risk of potential conflicts between vehicles - pedestrians - cyclists, the speed at which vehicles enter the bend, or the waiting time at the traffic lights. The analysis of all this invaluable information can help optimize a given road section, and improve the safety and convenience of transport.
Entering the city center by car and finding a parking lot is often a struggle. If we connect the city's parking lots into an efficient network of sensors that monitor available spaces, the length of time vehicles are parked, and the hours when vehicles are most heavily congested, this key aspect of traffic can be greatly enhanced. With maps embedded in vehicles, AI can facilitate finding free parking spots, alert you to potential parking overcrowding, and - something actually pretty common - allow you to find your car when you forget where you parked it.
Such solutions are particularly useful in places such as airports, sports stadiums or arenas, where traffic must be smooth, and a high volume of visitors may pose a threat to safety.
A useful application of AI and computer vision is car license plate recognition. This type of technology is often used when entering highways, tunnels, ferries, or restricted areas constrained by gates or barriers. AI helps verify whether a given vehicle is on the list of registrations that, due to the fee paid or the drivers' status, are allowed to access a given area.
License plate recognition by algorithms is also a well-proven tool in the hands of the police and security services, who in this way are able to pinpoint the route of a particular vehicle or verify the driver's alibi.
Each year potholes cause $3,000,000,000 worth of damage to vehicles in the U.S. alone. Intelligent algorithms can warn drivers of surprises lurking on the roads and monitor the condition of the road surface, so they can notify the authorities in advance of potential spots that will soon need fixing. This is enabled by linking the camera to ADAS, which applies machine learning to gather real-time information from the road surface where it is moving.
In this way, the driver can be warned not only of roadway damage but also of wet surfaces, ice, potholes or dangerous road debris. All of this improves safety for travelers, prevents accidents, and saves money - both in terms of drivers' finances and city funds.
Video surveillance has been with us on the roads for ages, but it wasn't until the system was supported by AI solutions that it became possible to detect traffic incidents more efficiently, respond faster and provide information to traffic users practically in real-time.
By linking cameras within an ITS system, using computer vision technology, and equipping vehicles with intelligent sensors, we can detect different types of accidents. Intelligent algorithms save lives, prevent serious accidents and warn road users of hazardous situations by recommending safer travel options.

The most commonly detected traffic incidents include:
Finally, there is a full category of artificial intelligence solutions that apply directly in the interior of the car and affect the drivers themselves (we covered this in more depth in this article ). Among them, three are particularly noteworthy:
Given the speed at which computer processing power is changing and the number of sensors from which data is being collected , fully automated cars on city roads are likely to be a question of the nearest 5-10 years. Change is happening at an exponential rate and today's applications of AI in transportation are just the first glimpse of the possibilities offered by intelligent algorithms. Change is essential and inevitable, e.g. due to the challenges facing the global community when it comes to global warming.
An increasing number of people live in cities, own not one but two vehicles, and want to travel to work or do their shopping in comfort. Transport companies and city managers must join forces with IT companies to fully tap into the potential of AI and change transport to be more efficient, environmentally friendly and suited to the way we want to use our cities. This is the only way we can make transportation sustainable and remove obstacles on the way to a zero-carbon economy and smart cities. Otherwise, we may face a vision of the future in which scientists predict traffic congestion 10 times worse than we experience today.
Ever since Henry Ford implemented the first production line and launched mass production of the Ford Model T, the automotive industry has been on the constant lookout for ways to boost performance. This aspect has become even more relevant today, given the constant market and social unrest. Coming to rescue supply chain management and product lifecycle optimization is predictive maintenance. Not only OEMs, but the entire automotive industry: insurers, car rental companies and vehicle owners are benefiting from the implementation of this technology.
Predictive maintenance is an advanced maintenance approach that utilizes data science and predictive analytics to anticipate when equipment or machinery requires maintenance before it faces a breakdown.
The primary aim is to schedule maintenance at optimal times, considering convenience and cost-effectiveness while maximizing the equipment's longevity. By identifying potential issues before they become critical, predictive maintenance significantly reduces the likelihood of equipment breakdowns.
Various types of maintenance strategies are employed in different industries:
Predictive maintenance employs various techniques, such as vibration analysis, acoustic monitoring, infrared technology, oil analysis, and motor circuit analysis. These methods enable continuous equipment condition monitoring and early detection of potential failures, facilitating timely maintenance interventions.
Predictive maintenance hinges on the real-time condition of assets and is implemented only when the need arises. Its purpose is to anticipate potential failures by monitoring assets while they are actively operational. Unlike preventive maintenance , this approach is rooted in the current operational state of an asset rather than statistical analysis and predetermined schedules.
Predictive maintenance solutions utilize a combination of sensors, artificial intelligence, and data science to optimize equipment maintenance.
The development of such solutions varies depending on equipment, environment, process, and organization, leading to diverse perspectives and technologies guiding their creation. However, there are steps common to every project: data collection and analysis, model development and deployment, as well as continuous improvement.
Here is a step-by-step process of how solutions are developed in the automotive industry :
Implementing predictive maintenance solutions in a fleet of vehicles or in a vehicle factory is a process that requires time, consistency and prior testing. Among the main challenges of rolling out this technology, the following aspects in particular are noteworthy.
Integrating data from many sources is a significant barrier to implementing predictive maintenance solutions. To accomplish this with a minimum delay and maximum security, it is necessary to streamline the transfer of data from machines to ERP systems. To collect, store, and analyze data from many sources, businesses must have the proper infrastructure in place.
Lack of data is a major hindrance to implementing predictive maintenance systems. Large amounts of information are needed to develop reliable models for predictive maintenance. Inadequate information might result in inaccurate models, which in turn can cause costly consequences like premature equipment breakdowns or maintenance.
To get over this difficulty, businesses should collect plenty of data for use in developing reliable models. They should also check that the data is relevant to the monitored machinery and of high quality. Businesses can utilize digital twins, or digital representations of physical assets, to mimic the operation of machinery and collect data for use in predictive maintenance systems.
Transitioning from preventive to predictive maintenance is complex and time-intensive. It requires comprehensive steps beyond technology, including assembling a skilled team and managing upfront costs. Without qualified experts versed in software and process intricacies, project success is doubtful.
The implementation of predictive maintenance programs comes with substantial costs. These upfront expenses pose challenges, including the need to invest in specialized sensors for data collection, procure effective data analysis tools capable of managing complexity, and possibly hire or train personnel with technical expertise.
To address these hurdles, collaboration with specialized vendors and the utilization of cloud-based solutions can prove cost-effective. Additionally, digital twin technology offers a way to simulate equipment behavior and minimize reliance on physical sensors, potentially reducing overall expenses.
The implementation of predictive maintenance involves extensive data collection and analysis, which can give rise to privacy concerns. Companies must adhere to applicable data protection laws and regulations, and establish proper protocols to safeguard the privacy of both customers and employees. Even though predictive maintenance data may be anonymized and not directly linked to specific individuals, it still necessitates robust security measures, since preventing data breaches and unauthorized access to vital company information is crucial for overall success.
Life cycle optimization, stock management, or even recycling management - in each of these fields predictive maintenance can bring substantial benefits. And this is not only for OEMs but also for fleet operators, transportation or logistics companies. And even for the end user.
Below we list the key benefits of implementing predictive maintenance in an automotive-related company:
Predictive maintenance clearly is not a one-size-fits-all solution for all sectors. Notably, it will work well for high production volumes and short lead times and anywhere you need to ensure reliability, security and convenience.
The automotive industry is a perfect fit for this model. As shown in the examples featured in the second part of the article, the top players in the market are tapping into this technology.
According to Techsci Research , “ The global predictive maintenance market was valued at USD 4.270 billion in 2020 and is projected to grow around USD 22.429 billion by 2026”.
Just a few years ago, artificial intelligence stirred our imagination via the voice of Arnold Schwarzenegger from "Terminator" or agent Smith from "The Matrix". It wasn't long before the rebellious robots' film dialogue replaced the actual chats we have with Siri or Alexa over our morning cup of coffee. Nowadays, artificial intelligence is more and more boldly entering new areas of our lives. The automotive industry is one of those that are predicted to speed up in the coming years. By 2030, 95-98% of new vehicles are likely to use this technology.
What will you learn from this article?
Looking at the application of AI in various industries, we can name five stages of implementation of such solutions. Today, companies from the Communication Technology (ICT) and Financial Services ("Matured Industries") sectors are taking the lead. Healthcare, Retail, Life Science ("Aspirational Industries") are following closely behind. Food & Beverages and Agriculture ("Strugglers") and companies from the Chemicals and Oil and Gas sectors ("Beginners") are bringing up the rear. The middle of the bunch is the domain of Automotive and, partly related to it, Industrial Machinery.

Although these days we choose a car mainly for its engine or design, it is estimated that over the next ten years, its software will be an equally significant factor that will impact our purchasing decision.
AI will not only change the way we use our vehicles, but also how we select, design, and manufacture them. Even now, leading brands avail of this type of technology at every stage of the product life cycle - from production through use, to maintenance and aftermarket.
Let's have a closer look at the benefits a vehicle manufacturing company can get when implementing AI in its operations.

An average passenger car consists of around 30,000 separate parts, which interestingly enough, are usually ordered from various manufacturers in different regions of the world. If, on top of that, we add a complicated manufacturing process, increasingly difficult access to skilled workers and market dependencies, it becomes clear that potential delays or problems in the supply chain result in companies losing millions. Artificial intelligence can predict these complex interactions, automate processes, and prevent possible failures and mishaps
For years, companies from the automotive industry have been trying to find ways to enhance work on the production line and increase efficiency in areas where people would get tired easily or be exposed to danger. Industrial robots have been present in car factories for a long time, but only artificial intelligence has allowed us to introduce a new generation of devices and their work in direct contact with people. AI-controlled co-bots move materials, perform tests, and package products making production much more effective.
The power of artificial intelligence lies not only in analyzing huge amounts of data but also in the ability to learn and draw conclusions. This fact can be used by finding weak points in production, controlling the quality of car bodies, metal or painted surfaces, and also by monitoring machine overload and predicting possible failures. In this way, companies can prevent defective products from leaving the factories and avoid possible production downtime.
In a competitive and excessively abundant market, selling vehicles is very difficult. Brands are constantly competing in services and technologies that are to provide buyers with new experiences and facilitate the purchasing process. Manufacturers use artificial intelligence services not only at the stage of prototyping and modeling vehicles, but also at the end of the manufacturing process, when the vehicle is eventually sold. A well-designed configurator based on AI algorithms is often the final argument, by which the customer is convinced to buy their dream vehicle. Especially when we are talking about luxury cars.
A dangerous situation on the road, vehicle in the blind spot, power steering on a slippery surface. All those situations can be supported by artificial intelligence, which will calculate the appropriate driving parameters or correct the way the driver behaves on the road. Instead of making automatic decisions - which are often emotion-imbued or lack experience - brands increasingly hand them over to machines, thus reducing the number of accidents and protecting people's lives.
Car journeys may be exhausting. But not for artificial intelligence. The biggest brands are increasingly equipping vehicles with solutions aimed at monitoring fatigue and driver reaction time. By combining intelligent software with appropriate sensors, the manufacturer can fit the car with features that will significantly reduce the number of accidents on the road and discomfort from driving in difficult conditions.
Cars that we are driving today are already pretty smart. They can alert you whenever something needs your attention and they can pretty precisely say what they actually need – oil, checking the engine, lights etc. The Connected Car era however equipped with the possibilities given by AI brings a whole lot more – predictive maintenance. In this case AI monitors all the sensors within the car and is set to detect any potential problems even before they occur.
AI can easily spot any changes, which may indicate failure, long before it could affect the vehicle’s performance. To go even further with this idea, thanks to the Over-The-Air Update feature, after finding a bug that can be easily fixed by a system patch, such solution can be sent to the car Over-The-Air directly by the manufacturer without the need for the customer to visit the dealership.
Driving a car is not only about operating costs and repairs, but also insurance that each of us is required to purchase. In this respect, AI can be useful not only for insurance companies ( see how AI can improve the claims handling process ), but also for drivers themselves. Thanks to the appropriate software, we will remember about expiring insurance or even buy it directly from the comfort of our car, without having to visit the insurer's website or a stationary point.
In 2015, it is estimated that only 5-10% of cars had some form of AI installed. The last five years have brought the dissemination of solutions such as parking assistance, driver assistance and cruise control. However, the real boom is likely to occur within the next 8-10 years.
From now on, artificial intelligence in the automotive industry will no longer be a novelty or wealthy buyers’ whims. The spread of the Internet of Things, consumer preferences and finding ways of saving money in the manufacturing process will simply force manufacturers to do this - not only in the vehicle cockpits, but also on the production and service lines.
To this end, they will be made to cooperate with manufacturers of sensors and ultrasonic solutions (cooperation between BMW and Mobileye, Daimler from Bosch or VW and Ford with Aurora) and IT companies providing software for AI. A dependable partner who understands the potential of AI and knows how to use its power to create the car of the future is the key to success for companies in this industry.
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