Artificial Intelligence’s Level of Development and Influence on the Automotive Supply Chain in Europe: A Case Study on Audi

Abstract

Over the last few years, many factors have transformed the automotive supply chain in Europe. This paper addresses some of the issues that challenge this supply chain and discusses artificial intelligence’s implementation benefits, such as the elimination of bottlenecks, gaining an advantage on the procure-to-pay system of the automotive supply chain, and the automatic read of invoices. Qualitative methodology was used to analyse the information gathered within this study, using in depth literature review and checking important releases on this subject in scientific papers available, focusing also on the Audi case study that shows real application of artificial intelligence technology into their manufacturing process and the opportunities to further apply this in Europe. Major changes in European automotive supply chains are underway as a result of the adoption of artificial intelligence, not only solves existing problems but calls for advanced algorithms to be developed to meet new demands. The implementation of artificial intelligence needs to follow ethics, and in some cases needs human supervision. The use of artificial intelligence has both advantages and disadvantages. Some are analysed in this article and the important role of Germany as a pioneer in using artificial intelligence effectively in the automobile industry is emphasized by a case study on Audi.

Keywords

• artificial intelligence
• supply chain management
• structural shift
• automotive industry
• audi