Volkswagen Sets a $1.2 Billion Bet on Artificial Intelligence

 

 

“Volkswagen will invest up to 1 billion euros, or $1.18 billion, to expand its artificial-intelligence capabilities by 2030 as it bets on the technology to speed up the rollout of vehicles and innovation while increasing efficiency.

 

The German auto group said the investment will focus on AI-supported vehicle development, industrial applications, and the expansion of high-performance information-technology infrastructure.

 

"AI is our key to greater speed, quality, and competitiveness -- across the entire value chain, from vehicle development to production," said Hauke Stars, member of the board of management for IT at Volkswagen Group. "Our ambition: No process without AI."

 

Volkswagen said that by integrating AI across its entire auto business, it could save up to 4 billion euros by 2035 through efficiency gains and cost-avoidance opportunities.

 

The carmaker currently uses more than 1,200 AI applications throughout the group, with several hundred more in development or nearing implementation.

 

With its partner Dassault Systemes, Volkswagen is building an AI-powered engineering application that will be available globally for all group brands, offering engineers a platform for virtual testing and component simulations. Together with other initiatives, this collaboration aims to help speed up vehicle development to 36 months or less, making it at least 25% -- around 12 months -- faster than today.

 

It also is advancing AI integration in manufacturing to optimize vehicle assembly, energy and materials, while AI-powered applications are strengthening cybersecurity, employee training and knowledge sharing.

 

The company's group-wide cloud infrastructure will be significantly expanded to enable more processing of sensitive information, which it hopes will strengthen its digital resilience against external risks, and it is exploring the potential of an industrial AI model to boost efficiency in logistics and industrial processes.

 

It said the model would use real manufacturing, design and process data from partners and could be based on Catena-X, the automotive open platform founded by Volkswagen, BMW, BASF, Mercedes-Benz, SAP, Siemens, ZF and T-Systems that enables secure data exchange between the companies.

 

On a Europe-wide basis, Volkswagen said political support will be key to the global AI race. This includes innovation-friendly regulation and targeted incentives such as funding programs that strengthen spinoffs from universities and research institutions and accelerate the transfer of scientific knowledge into market-ready applications.” [1]

 

1. Volkswagen Sets a $1.2 Billion Bet on Artificial Intelligence. Chopping, Dominic.  Wall Street Journal, Eastern edition; New York, N.Y.. 10 Sep 2025: B4.