Digital assistants to focus on safety and security

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The growth of digital assistants in human-machine interfaces creates new opportunities for in-vehicle engagement services, according to consultants Frost & Sullivan.

The analysis, Strategic Analysis of Automotive Digital Assistants, Forecast to 2025, studies the competitive landscape, business models and future focus areas of OEMs, digital assistant suppliers and technology companies.

According to Frost & Sullivan, capabilities are targeted at navigation and entertainment services to enhance the multimedia experience, but will focus on safety and security in the future.

Anubhav Grover, research analyst, mobility, at Frost & Sullivan, said,  “With the rising popularity of connected services such as traffic information and local search, digital assistants have become a key differentiator for original equipment manufacturers (OEMs). OEM-branded digital assistants will help auto makers strengthen their brand and convert one-time sales into continual service-centric relationships.

“OEMs are aiming to create their own branded digital assistants that will co-exist and integrate with third-party and tech-branded digital assistants. BMW has already launched its own Intelligent Personal Assistant (IPA), which uses Alexa to access Amazon’s e-commerce and Cortana for Microsoft Office.”

Grover added that North America is expected to lead adoption of digital assistant solutions and Asia-Pacific will be the growth hub for OEMs.

Grover said, “Digital assistant developers are increasingly building strategic partnerships with telecom providers and communication module makers to enhance on-road safety and in-vehicle data-rich services. Flexible business models such as ‘choice of network’ for consumers will further improve customer retention and revenue generation.”

Frost & Sullivan said digital assistant companies need to employ a hybrid approach, mixing embedded solutions and cloud-based services; apply concepts like augmented reality and marketplace to contextual services in partnership with merchants and platform providers; utilize cloud platform capabilities including artificial intelligence and machine learning; and ensure data privacy and protect automotive data stored in AI systems.

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