Future vehicle will run on AIoT

“Once, software was a part of the car. Now, software determines the value of a car. The success of a car depends on its software much more than the mechanical side.” - Manfred Broy, TU Munich. Many car drivers expect their vehicles to be fully integrated into their digital lives. In addition, new connectivity, automation, and personalization features will be increasingly implemented with software in the future. While in the past the customer’s experience of a car was primarily defined by hardware, data and software is now taking on a much more important role. This trend of software massively shaping the customer experience and, in some cases, even the specification of the hardware is referred to as the “software-defined vehicle”.This evolution not only affects development and operation, but also makes new business models that rely on emerging AI and IoT technologies. So new types of collaboration are possible. German auto industry top managers always proudly stated that they have “gas in their blood”. But do they have electricity and code in their blood?In 2025 all Bosch products either possess intelligence themselves, or AI will have played a key role in their creation. It is intended business to be more data driven and digital analytics to be used as a base for many decisions.I will dive into the reference architecture for software defined vehicle platform developed jointly with Microsoft. I fully support that the automotive and IT industries do not have to be competitors. More than ever, they will complement each other.