Volkswagen Group is undergoing a significant digital transformation, integrating advanced technologies such as Application Lifecycle Management (ALM) systems and artificial intelligence (AI) to revolutionize automotive engineering. This strategic shift aims to enhance efficiency, innovation, and customer experience across the company's extensive portfolio.

Establishment of the AI Lab

In January 2024, Volkswagen established a specialized "AI Lab" to serve as a globally networked competence center and incubator for AI-driven innovations. The AI Lab focuses on developing digital products that incorporate AI, including advanced infotainment systems, high-performance speech recognition, and the seamless integration of digital ecosystems within vehicles. By collaborating with technology companies across Europe, China, and North America, the AI Lab aims to rapidly develop and implement digital prototypes across Volkswagen's brands.

Partnership with PTC and Microsoft

In October 2023, Volkswagen Group entered into a strategic partnership with PTC to adopt the Codebeamer® ALM solution, enhancing software development for its next-generation electric vehicles. This collaboration is designed to improve engineering practices related to software requirements, test, and release management. The partnership is expected to scale across multiple engineering teams within Volkswagen Group, supporting the software development process and informing future roadmap priorities for the automotive industry.

Building upon this foundation, in December 2024, PTC, Microsoft, and Volkswagen Group announced the development of a generative AI-powered copilot for software development, leveraging the Codebeamer ALM solution. This initiative aims to streamline product requirement creation, testing, validation, and release processes, thereby accelerating software development across the automotive and industrial sectors. By integrating Microsoft Azure AI capabilities, the Codebeamer Copilot is set to enhance engineering workflows and software lifecycle management.

Integration of AI in Production and Logistics

Volkswagen's digital transformation extends beyond software development into production and logistics. The company has implemented over 100 new applications to optimize these processes, including virtual training courses for new vehicle start-ups and AI-driven energy-saving initiatives. These applications are being deployed across more than 40 plants via the Digital Production Platform (DPP), developed in collaboration with Amazon Web Services (AWS). The goal is to simplify the entire process chain, maximize the use of new technologies, and establish autonomous processes to enhance efficiency and flexibility.

Strategic Vision and AI Transformation

Volkswagen's overarching strategy, "The Group Strategy – Mobility for generations," introduced in 2024, emphasizes the importance of AI in driving technological leadership. The company is committed to fully exploiting AI's potential by developing a state-of-the-art IT infrastructure and ensuring data transparency and availability. This strategy includes adapting business processes to align with AI applications, thereby optimizing processes and products throughout the entire value chain. Employees are being trained to effectively utilize AI, ensuring that the benefits of AI transformation are realized across all areas of the company.

Conclusion

Volkswagen Group's integration of ALM systems and AI signifies a profound shift in automotive engineering. By establishing the AI Lab, partnering with industry leaders like PTC and Microsoft, and embedding AI into production and logistics, Volkswagen is positioning itself at the forefront of the automotive industry's digital transformation. These initiatives are set to enhance operational efficiency, foster innovation, and deliver superior products and services to customers worldwide.