AI Is Opening New Revenue Streams for Automakers

Artificial intelligence (AI) is revolutionizing the automotive industry by creating new revenue streams for automakers. Ford and General Motors (GM) are among the companies betting on AI assistants to maintain customer relationships and generate income post-sale. Ford's AI assistant, integrated into the Ford and Lincoln owner apps, connects to a vehicle's real-time data to answer questions about tire pressure, oil life, and fuel levels.

The assistant is set to launch in 2027 as part of Ford's existing connected-services infrastructure, which already facilitates services like BlueCruise. BlueCruise subscriptions grew by 20% in Q2, accounting for 50% of Ford's retail Integrated Services revenue, according to Ford CEO Jim Farley. Similarly, GM plans to roll out Google Gemini to 4 million U.S. vehicles across Cadillac, Chevrolet, Buick, and GMC, while also developing its own AI assistant trained on proprietary vehicle data connected to OnStar.

GM's OnStar platform reported $6.3 billion in deferred revenue and $800 million in recognized revenue as of Q2, on track to reach $3 billion in recognized revenue by 2026. By leveraging AI assistants, automakers can tap into the unique data generated by each vehicle, offering personalized recommendations for paid services. This approach transforms a passive customer relationship into an active engagement, enabling automakers to capture value beyond the initial sale.

While Ford and GM have not explicitly designed their AI assistants as marketplaces, the groundwork has been laid: connected vehicles, proprietary data, subscription-based software, and AI interfaces that comprehend drivers' needs.