Accelerating the Use of AI in Automotive: Simplified Policies for Global Competitiveness in Cloud and Artificial Intelligence

The European automotive sector is gearing up for a digital revolution, with AI and digital infrastructure playing a crucial role in its global competitiveness. This transformation, however, comes with challenges that require immediate attention, especially for Small and Medium Enterprises (SMEs) in the automotive innovation ecosystem.

One such challenge is regulatory clarity and streamlined compliance processes. The sector generates and processes vast amounts of data, requiring powerful compute resources for AI models. To address this, efficient, secure, and scalable cloud and edge computing capabilities are critical.

The European Union (EU) has recognised the need to reinforce its cloud and edge capabilities to achieve its digital ambitions. EU Inc, an organisation representing over 16,000 founders, CEOs, and investors, has called for unified legal frameworks and supportive innovation policies across Europe.

Automotive suppliers are integrating AI into intelligent vehicle systems and applying it across Research & Development, design, and manufacturing. Edge AI, in particular, is of significance for real-time, safety-critical applications in the automotive sector.

However, divergent global AI standards could lead to technical barriers, increased compliance burdens, and fragmented innovation ecosystems. To avoid this, the EU should strive for interoperability of AI rules and strategies with international regulatory approaches. The AI Act should avoid duplication with sectoral requirements and instead build on existing frameworks and international standards.

Regulatory guidance and risk classifications should reflect the structure of the automotive value chain. The sector operates under specific regulatory frameworks such as Regulation 2018/858 and 2019/2144.

Large-scale private investments into European cloud and edge infrastructure need targeted incentives and de-risking mechanisms. The EU should avoid rigid data localisation requirements that limit access to diverse datasets and slow down innovation cycles.

Cross-border data flows and participation in global AI ecosystems should remain possible. EU Inc suggests reviewing the AI Code of Practice proposal where necessary to ensure it avoids overly complex risk assessments and overlapping monitoring requirements.

The success of AI in the mobility sector is of great importance to EU Inc. The organisation supports the European Commission's efforts to shape a forward-looking strategy for AI and digital infrastructure in Europe. EU Inc is open to continued dialogue with policymakers to develop an AI strategy that reflects the practical realities of the sector while upholding Europe's values.