Google's parent Alphabet Inc. (NASDAQ:GOOGL)(NASDAQ:GOOG) and Volkswagen AG (OTC:VWAGY) are joining forces to launch an AI assistant for drivers, leveraging Google's advanced technology.

What Happened: Alphabet is teaming up with Volkswagen to introduce an AI assistant for drivers, Reuters reported on Tuesday.

The AI assistant, integrated into a smartphone app, will help Volkswagen drivers with tasks such as changing a flat tire or understanding dashboard indicators. It utilizes Google's Gemini large language models and cloud computing capabilities.

Google Cloud CEO Thomas Kurian highlighted the technical challenges overcome to achieve multimodality, which allows the AI to process text, images, and videos.

Kurian stated, "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 currently free for approximately 120,000 owners of Volkswagen's Atlas and Atlas Cross Sport models. It will expand to other Volkswagen models from 2020 onwards by early next year.

Corporate adoption of generative AI could significantly impact the cloud computing market, where Google ranks third behind Amazon.com and Microsoft Corp. Google's cloud segment generated $33 billion in revenue in 2023, contributing to its overall $307 billion revenue.

Why It Matters: This collaboration marks another significant step for Volkswagen in integrating advanced AI technologies into their vehicles. Earlier this year, Volkswagen announced the integration of OpenAI's ChatGPT into its new-generation infotainment systems, including models in the all-electric ID family. This integration allows drivers to use AI for various tasks, enhancing the overall driving experience.

However, this partnership comes at a crucial time for Volkswagen. The company is facing significant challenges, including potential plant closures due to underutilization and increased competition from Chinese automakers. According to a recent report, Volkswagen's crisis is a reflection of the broader struggles within Europe's automotive industry. The industry is grappling with global competition and a declining market share.

• Elon Musk Shares It Takes 'Multiple Fish Licenses' To Launch A Rocket: 'I Don't Think The Public Is Quite Aware Of The Madness That Goes On,' Says SpaceX CEO

Photo by Gyuszko-Photo on Shutterstock

This story was generated using Benzinga Neuro and edited by Pooja Rajkumari