Google, Volkswagen Partner on Smartphone AI Assistant

People walk next to a Google logo during a trade fair in Hannover Messe, in Hanover, Germany, April 22, 2024. (Reuters)
People walk next to a Google logo during a trade fair in Hannover Messe, in Hanover, Germany, April 22, 2024. (Reuters)
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Google, Volkswagen Partner on Smartphone AI Assistant

People walk next to a Google logo during a trade fair in Hannover Messe, in Hanover, Germany, April 22, 2024. (Reuters)
People walk next to a Google logo during a trade fair in Hannover Messe, in Hanover, Germany, April 22, 2024. (Reuters)

Alphabet’s Google is providing key capabilities for an artificial intelligence assistant for Volkswagen drivers in a smartphone app, part of Google's strategy to win business by offering tools to build enterprise AI applications.

Consumers can ask Volkswagen's in-app assistant questions like "How do I change a flat tire?" or point their phone cameras at vehicle dashboards to receive relevant information.

The AI assistant draws on Google's Gemini large language models, programs that can understand and generate predictive responses to human language, and cloud computing capacity. The VW tool was designed by adding data such as Volkswagen owner’s manuals and YouTube videos on vehicle maintenance to Gemini.

Google Cloud CEO Thomas Kurian told Reuters that the product required overcoming technical hurdles to multimodality, the ability to process different data types such as text, images and videos.

"The problem looks superficially simple, but it’s technically very complex," Kurian said. "Most people think what we built is a speech-to-text translation system that then looks up a manual. Absolutely not."

The AI assistant is free and available to about 120,000 owners of Volkswagen’s Atlas and Atlas Cross Sport models. It will roll out by early next year to other cars from model year 2020 and later.

Corporate adoption of generative AI could alter the lucrative cloud computing market, where Google places third in terms of market share behind Amazon and Microsoft . Most companies are still searching for applications that users will find practical.

Cloud computing is a growing business segment for Google, accounting for $33 billion of the firm's $307 billion in overall revenue in 2023.

AI solutions have driven billions in revenue this year, the company has said, though it declined to disclose more precise figures.

Volkswagen declined to give details about usage for its AI assistant so far.



Volkswagen Workers to Go on Warning Strikes Across Germany

The Volkswagen logo is displayed on the Volkswagen power plant on the day when Volkswagen AG and the industrial union IG Metall started talks over a new labor agreement for six of its German plants, in Wolfsburg, Germany, September 25, 2024. REUTERS/Annegret Hilse/File Photo
The Volkswagen logo is displayed on the Volkswagen power plant on the day when Volkswagen AG and the industrial union IG Metall started talks over a new labor agreement for six of its German plants, in Wolfsburg, Germany, September 25, 2024. REUTERS/Annegret Hilse/File Photo
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Volkswagen Workers to Go on Warning Strikes Across Germany

The Volkswagen logo is displayed on the Volkswagen power plant on the day when Volkswagen AG and the industrial union IG Metall started talks over a new labor agreement for six of its German plants, in Wolfsburg, Germany, September 25, 2024. REUTERS/Annegret Hilse/File Photo
The Volkswagen logo is displayed on the Volkswagen power plant on the day when Volkswagen AG and the industrial union IG Metall started talks over a new labor agreement for six of its German plants, in Wolfsburg, Germany, September 25, 2024. REUTERS/Annegret Hilse/File Photo

Volkswagen workers will go on warning strikes on Monday at plants across Germany, labor union IG Metall said, marking the first large-scale walkouts at Volkswagen's domestic operations since 2018.

The start of the strikes represents a further escalation of a dispute between Europe's top carmaker and its workers over mass layoffs, pay cuts and possible plant closures - drastic measures the company says it cannot rule out in the face of Chinese competition and cooling consumer demand.

Labor representatives at VW had on Nov. 22 voted for limited strikes at German operations from early December after talks over wages and plant closures failed to achieve a breakthrough, Reuters reported.

"If necessary, this will be the toughest collective bargaining battle Volkswagen has ever seen," IG Metall negotiator Thorsten Groeger said in a statement.

The carmaker said it continues to rely on constructive dialogue to find a sustainable solution.

"Volkswagen respects the right of employees to take part in a warning strike," a spokesperson said in reply to the union's announcement, adding that the company had taken steps in advance to ensure a basic level of supplies to customers and minimise the impact of the strike.

Warning strikes in Germany usually last from a few hours.

The union had last week proposed measures it said would save 1.5 billion euros ($1.6 billion), including forgoing bonuses for 2025 and 2026, which Europe's top carmaker dismissed.

Volkswagen has demanded a 10% wage cut, arguing it needs to slash costs and boost profit to defend market share in the face of cheap competition from China and a drop in European car demand.

The company is threatening to close plants in Germany for the first time in its 87-year history.

"Volkswagen has set fire to our collective agreements and instead of extinguishing this fire in three collective bargaining sessions, the management board is throwing open barrels of petrol into it," Groeger said.

An agreement not to stage walkouts had ended on Saturday, IG Metall said, enabling workers to carry out warning strikes from Sunday across VW AG's German plants.

"Warning strikes will start at all plants from Monday. How long and how intensive this confrontation needs to be is Volkswagen's responsibility at the negotiating table," Groeger said.

Labor representatives and management will meet again on Dec. 9 to carry on negotiations over a new labor agreement for workers at the German business - VW AG - with unions vowing to resist any proposals that do not provide a long-term plan for every VW plant.