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Europeans interested in AI cars but reluctant to pay extra

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An international study by MHP Consulting UK has revealed significant interest among European consumers in AI-supported cars, but a reluctance to pay extra for such functionalities.

The study, titled "AI as Game Changer: The New Driving Force of the Automotive Industry," surveyed 4,700 participants across China, the US, and several European countries, examining their expectations and behaviours regarding AI functions in vehicles. The findings showed that while 79 percent of European respondents expressed interest in AI-supported cars, only 23 percent were willing to pay an additional cost for these capabilities.

Car users in Europe appear to exhibit scepticism towards the opportunities and benefits of AI applications in vehicles. This is contrasted by the responses from Chinese consumers, of whom 48 percent view AI in vehicles as an opportunity compared to only 23 percent of Europeans. Additionally, some 39 percent of European respondents felt that the opportunities and risks of AI are fairly balanced, whilst 24 percent believed that the risks outweigh the benefits.

The study has highlighted a discrepancy in consumer readiness to adopt and pay for AI technologies in cars, depending on geographic regions. For instance, while 84 percent of Chinese respondents would be motivated to purchase a vehicle due to AI functions, only 48 percent of European respondents shared this sentiment. Moreover, the willingness to incur extra charges for optional AI features was notably low across the board, with just 23 percent of Europeans and 39 percent of Chinese respondents indicating a willingness to pay.

One of the authors of the study, Marcus Willand, Partner at MHP, stated, "The figures show that the prospect of greater safety and comfort due to AI can motivate purchasing decisions. However, the European respondents in particular are often hesitant and price-sensitive." Dr. Nils Schaupensteiner, Associated Partner at MHP and co-author of the study, added, "Automotive companies need to create innovations with clear added value and develop both direct and indirect monetisation of their AI offerings, for example through data-based business models and improved services. The study also provides specific approaches for this."

Despite the varying levels of enthusiasm towards AI in cars, the study found a general trust among consumers for established car manufacturers over technology firms. Specifically, 64 percent of respondents trusted traditional automotive companies more than companies such as Apple, Google, and Microsoft, at 50 percent.

Beyond individual vehicle applications, the study suggests that artificial intelligence promises to offer substantial advancements for the automotive industry as a whole. AI in development and production processes could drive progress and offer competitive edges. The study details potential applications of AI, including pattern recognition for quality management, data management for analysing vehicle data, decision-making tools for regional pricing strategies, and AI-based customer communication systems.

Augustin Friedel, Senior Manager and study author, emphasised the potential benefits along the entire value chain, stating, "It is worth OEMs and suppliers considering the opportunities offered by the new technology along their entire value chain. However, the possible uses are diverse and implementation is quite complex."

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