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GM is bringing IBM's Watson to its vehicles (GM, IBM)
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GM recently unveiled a new version of its OnStar system that is powered by IBM’s Watson AI capabilities, according to The Wall Street Journal.
The system, called OnStar Go, is designed to learn from users' behavior and then bring users personalized offers from third-party partners. For example, the system could recognize when the vehicle needs more fuel, and then find and suggest the nearest Shell or Exxon Mobil station to fill up at. The system will be available starting with 2017 GM vehicles and will be offered to OnStar's basic plan subscribers at no additional cost.
Partners will be able to offer OnStar customers goods and services based on analysis of data — including location, habits, and weather — conducted by Watson. GM and IBM will share the revenue with their partners, which currently include Exxon Mobil, Mastercard, and parking spot locator Parkopedia. Further, while the system cannot respond to voice commands, it's expected to adopt that capability next year.
This represents a strong new monetization opportunity for GM and its third-party partners.By using Watson to determine personalized recommendations for drivers of many GM vehicles, the company is creating a new revenue stream for itself and enhancing existing revenue for its third-party partners. Further, this could become a highly popular system for GM as cars become more autonomous and operators have more freedom in their vehicles to interact with their infotainment centers. This will free them up to stream music or video, make e-commerce purchases, or plan their next vacation.
Over the past year, there has been a significant uptick in the number of connected cars on the road. And as internet integration becomes more commonplace, the automobile as we know it will transform.
Over the next five to 10 years, this internet integration is expected to change the car ownership model, create a new platform for consumers to access content, lead to fully autonomous vehicles, and revolutionize the auto industry.
The market position of the car today is similar to where the smartphone was in 2010 — it's just taken off and is ready to explode.
John Greenough, senior research analyst for BI Intelligence, Business Insider's premium research service, has compiled a detailed report on the transformation of the automobile that examines the transformation of the automobile. It also analyzes all areas of the changing automotive market, including the market size for connected cars, automakers benefits and connection strategies, market leaders, consumer demand, and more.
Here are some of the key takeaways from the report:
Over 380 million connected cars will be on the road by 2021. The market has seen a significant increase in automakers plans to connect the majority of the vehicles they sell and as a result, we've increased our 2015 forecast.
Automakers are connecting the vehicles they sell because the connection offers clear business opportunities.
Consumers are adopting the connected car faster than expected. We identify the 3 factors that causing the increase in demand.
Tech companies will play a major role in the future of the automotive market. The big question is whether tech companies will eventually manufacture cars?
Fully autonomous cars are only a few years away. Technological, regulatory, and consumer adoption hurdles still remain, but there have been many strides towards a car that can drive itself from point A to point B with little to no human interaction.
In full, the report:
Forecasts connected car shipments
Identifies automakers strategy for connection
Analyzes consumer interest in the connected car
Examines Apple CarPlay and Android Auto
Discusses the potential changing car ownership model
Describes the evolution of the self-driving car
Identifies top connected car and fully autonomous car barriers
To get your copy of this invaluable guide, choose one of these options:
Subscribe to an ALL-ACCESS Membership with BI Intelligence and gain immediate access to this report AND over 100 other expertly researched deep-dive reports, subscriptions to all of our daily newsletters, and much more. >> START A MEMBERSHIP
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The choice is yours. But however you decide to acquire this report, you’ve given yourself a powerful advantage in your understanding of connected cars.
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