Rudy Lai

AI @ Mercedes-Benz

Luxury focus, significant U.S. market
Industry
Last updated
July 3, 2025 at 10:44 AM

Summary

  • Mercedes-Benz has steadily integrated AI across manufacturing, user experience, and product development from late 2023 through early 2026, including advanced use of generative AI, humanoid robotics, and conversational AI assistants like MBUX. Notable figures include Markus Schäfer (CTO) and Magnus Östberg (Chief Software Officer).
  • Their AI initiatives span from internal production optimizations (MO360 AI Factory, humanoid robots in Berlin) to consumer-facing innovations such as the next-gen MBUX infotainment system featuring generative AI and conversational capabilities developed in partnership with Google Cloud, aiming for hyper-personalized, natural interactions.
  • By mid-2025, Mercedes-Benz earned recognition with the AI Impact Award for automotive UX systems, leveraging agentic, generative, and traditional AI to improve customer experience, reduce production costs, and enhance safety, with over 3 million vehicles already employing AI-based features.

VIBE METER

More AI announcements = more VIBE
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5 AI Use Cases at Mercedes-Benz

Process Automation
2025
Traditional
Generative
Agentic
Outcome
Costs
The automaker uses AI platforms like Celonis Process Intelligence to automate routine tasks and improve decision-making, resulting in better delivery performance and operational efficiencies. [1]
Virtual Assistant
2025
Customer Facing
Traditional
Generative
Agentic
Outcome
The MBUX system uses advanced AI, including generative and conversational AI technologies, to create a human-like virtual assistant for natural user interaction, facilitating personalized, context-aware vehicle control and information access. [1][2][3]
Conversational Search
2025
Customer Facing
Traditional
Generative
Agentic
Outcome
Mercedes-Benz integrates AI-powered conversational search within navigation systems, allowing drivers to find points of interest and receive directions through natural language queries. [1]
Design Acceleration
2025
Traditional
Generative
Agentic
Outcome
Costs
Design teams at Mercedes-Benz leverage AI tools to speed up design processes, including generating concepts for car designs and related architecture, enhancing productivity and innovation. [1]
Manufacturing Optimization
2025
Traditional
Generative
Agentic
Outcome
Costs
Mercedes-Benz applies AI models such as MO360 and humanoid robotics to streamline and optimize production lines, improve automation, and increase manufacturing efficiency in their digital factories. [1][2][3]

Timeline

2026 Q1

1 updates

Chief Software Officer Magnus Östberg discussed Mercedes-Benz's strategy to prove that AI equals luxury, emphasizing redefining luxury experience leveraging advanced AI capabilities.

2025 Q4

3 updates

Continued AI-driven transformation with Celonis Process Intelligence Platform improving delivery and decision-making; expanded AI use across product, process automation, and as co-pilot for employees; enhanced MBUX Virtual Assistant delivers effective human-like conversations.

2025 Q3: no updates

2025 Q2

2 updates

Mercedes-Benz won the AI Impact Award 2025 for automotive/transportation UX systems; next-gen MB.OS infotainment system incorporates generative, behavioral, and agentic AI powered by ChatGPT and Google Gemini for hyper-personalized, empathetic user experiences.

2025 Q1

4 updates

Acceleration of AI and humanoid robotics integration at Berlin digital production campus with MO360 AI Factory deployment; conversational AI enhanced MBUX assistant with Google Cloud partnership enabled multimodal reasoning; AI-enabled Point-of-Interest navigation introduced.

2024 Q4

2 updates

Expanded capabilities of MBUX Voice Assistant with AI-driven knowledge features including Microsoft Bing integration for real-time, accurate answers; AI routines enabled in MBUX system for user customization.

2024 Q3: no updates

2024 Q2

2 updates

Focus on generative AI and speech interfaces to enhance customer experience; intelligent systems developed to increase fun and safety in driving experience.

2024 Q1

3 updates

Introduction of the AI-driven MBUX Virtual Assistant with generative AI enabling human-like interactions in infotainment; partnership with Apptronik to integrate AI into assembly line robots began.

2023 Q4: no updates

2023 Q3

3 updates

Mercedes-Benz started building a connected digital production system powered by NVIDIA Omniverse and leveraging generative AI and machine learning within MO360 production environment to optimize manufacturing processes.