November 25, 2016 by Canadian Underwriter
A new “mobility services market” tied to products and services related to autonomy, mobility and connectivity will be worth well over US$1 trillion globally by 2030, according to a new report from KPMG.
Deep learning – an advanced form of artificial intelligence and dynamic way of computerized decision-making – will drive significant change for autonomous cars and for the automotive and transportation industry, the audit, tax and advisory firm said in a statement released earlier this week.
The report, titled I see. I think. I drive. (I learn), notes that the direct impacts of deep learning will revolutionize the nature of doing business for automakers. “Deep learning is accelerating autonomy faster than anyone could’ve imagined, and it has far-reaching implications for the industry and societal mobility as a whole,” said Gary Silberg, KPMG’s national automotive leader. “If a car can’t learn, then it’s still reliant on millions and millions of lines of code, with such complexity and ambiguity, that full autonomy wouldn’t be achievable for many years to come.”
Silberg said in the statement that he feels that it is a “new era in automotive product development and manufacturing – one that emphasizes the car’s nervous system, which includes computer ‘brain,’ sensors, controls, driver interaction and data storage even more than the powertrain. This is an enormous shift in organizational structure, talent acquisition and operating model for most car manufacturers.”
According to KPMG, this is a “critical juncture” in the history of the auto industry – as original equipment manufacturers and tech companies “face off in a war for specialized talent. People with deep learning expertise are in short supply and the pool of experts among those specialists is even smaller. This makes it difficult for traditional automakers to compete with tech leaders. In addition, universities cannot keep pace with the autonomous driving market demands for talent.”
In the report, KPMG identifies the key developments for automakers to contemplate if they are to survive: