Driving intelligence: How AI in connected vehicles is shaping the future of automotive value

For decades, the value of a car ended the moment it left the showroom floor. Today, in the age of connected vehicles, its true potential unfolds over time. Today, the real value of a car begins after it's sold. Powered by artificial intelligence and real-time data, vehicles have evolved beyond being mere modes of transport to becoming platforms for continuous engagement, dynamic upgrades, and recurring revenue.

The automotive industry in India is standing at a crucial inflection point. While electric vehicles continue to dominate headlines, a deeper transformation is underway, one that is driven not by what’s under the hood, but by what’s running in the cloud. Connected car technologies, enabled by AI, are quietly reshaping how vehicles are designed, experienced, and monetised. A NITI Aayog report estimates that software’s contribution to a vehicle’s total value will double, rising from around 2% today to 4–5% by 2030. The growing role of AI, telematics, and over-the-air (OTA) updates is reshaping vehicles into intelligent, personalised, and upgradeable platforms, more like smartphones on wheels than traditional machines.

AI as the Engine of New Value

Modern connected vehicles generate upwards of 25 GB of data per hour, from how drivers brake on a hill to how batteries perform in bumper-to-bumper traffic. Yet data alone is not the differentiator. It is artificial intelligence that turns this data into insights, services, and value. Automakers are now deploying AI to detect usage patterns, identify underutilised features, and prompt drivers with tailored offers, be it a trial of heated seats during winter, or a subscription for advanced driver assistance systems (ADAS) for highway commuters. These capabilities transform vehicles into living products that evolve with the user, opening new revenue streams far beyond the initial purchase.

This AI-powered intelligence is also redefining innovation cycles. In a traditional R&D setup, vehicle upgrades could take years. Today, AI allows real-world data to feed directly into design and development. Battery performance across climates, wear and tear based on terrain, or infotainment usage by demographic, all of this can now inform real-time improvements. Over-the-air (OTA) updates make these enhancements seamless. What once required a service centre visit can now be handled with a click, giving OEMs unprecedented agility to innovate at the speed of relevance.

Hyper-Personalisation and Predictive Experiences

Just as critically, connected AI enables hyper-personalised experiences that drive long-term customer loyalty. Onboarding no longer needs to be a static manual. Instead, it becomes contextual and adaptive. If a driver frequently travels at night, the car might suggest upgrading to adaptive lighting. If music usage spikes on long drives, the system could offer a trial of premium audio. These micro-interactions, powered by AI and behavioural data, foster a sense of partnership between brand and driver, turning users into loyalists, and vehicles into trusted companions.

Proactive service is another area seeing dramatic evolution. AI can predict maintenance needs based on real-world usage, from tyre wear to engine diagnostics, often before the driver even notices. This shift from reactive service to predictive care significantly enhances safety while lowering operational costs. More importantly, it positions the automaker as a reliable, customer-first brand, something that carries immense weight in India's trust-driven car market.

Reimagining the Automotive Ecosystem

However, the real opportunity lies not in isolated features, but in building a unified, intelligent automotive ecosystem. With AI stitching together data across the customer journey, from test drive and financing to resale and recycling, each touchpoint becomes smarter. Sales teams can personalise offers based on lifestyle. Insurance and servicing can be embedded into the ownership experience. Financing can become dynamic, and usage based. The car, the showroom, the app, and the service centre all start speaking the same intelligent language, creating a frictionless and connected experience.

Why India Could Lead the Way

India is uniquely positioned to lead this transformation. With a digital-native population, high smartphone penetration, expanding 4G/5G infrastructure, and rising interest in EVs, the ingredients for a connected AI-led mobility revolution are already in place. What’s needed now is bold execution. Automakers must invest in secure, scalable data infrastructure and ethical AI models that prioritise both innovation and privacy. Policymakers, too, must craft governance frameworks that encourage experimentation while safeguarding user rights.

The next frontier in automotive isn’t just about better engines or cleaner energy, it’s about smarter experiences. When a car knows your preferences, adjusts to your habits, predicts your needs, and evolves over time, it ceases to be a machine. It becomes a digital companion. And in a market where differentiation is increasingly about engagement, not engineering, this intelligence is the competitive edge.

For Indian automakers, the message is clear- those who embrace AI-powered connected mobility will not only unlock new revenue, but they will also own the future of customer loyalty. The road ahead belongs to those who are ready to build cars that think.

(Views are personal; the author is Regional Vice President, Salesforce)