Volkswagen invests €1bn in AI to speed up car development

Published September 10, 2025 19:57

Tim James

Tim James

Volkswagen has announced a €1 bn (£866mln) investment in artificial intelligence, pledging to make the technology central to how it designs and builds vehicles.

The German automaker unveiled the plan at the IAA Mobility event in Munich, saying AI will be used in «vehicle development, industrial applications and high-performance IT infrastructure.»

Hauke Stars, Member of the Board of Management for IT at Volkswagen Group, called the move a milestone:

«With artificial intelligence, we are igniting the next stage on our path to becoming the global automotive tech driver. AI is our key to greater speed, quality, and competitiveness – across the entire value chain, from vehicle development to production.»

Hauke Stars. Photo: GB News

Volkswagen said the investment could unlock up to €4.5bn (£3.9bn) in efficiency gains and cost savings over the next decade. The company aims to cut vehicle development cycles to just 36 months — a year faster than current timelines.

Stars added that VW’s strategy was to deploy AI «with purpose,» ensuring it is scalable, responsible, and delivers clear industrial benefits.

«There will be no process without AI,» she said.

The Wolfsburg-based company is already running more than 1,200 AI projects, with hundreds more in the pipeline. It is also working with Dassault Systèmes to build an AI-powered engineering environment.

Volkswagen production factory. Photo: GB News

Volkswagen emphasised that the push into AI would also strengthen cybersecurity, support the growth of its electric vehicle range, and help protect the brand’s «technological independence and resilience.»

Kursiv Uzbekistan also reports that Uzbekistan, Central Asia’s most populous nation, is pressing ahead with rapid modernisation of its mobile infrastructure as part of a sweeping digital transformation strategy.

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