Hyundai Motor Group aims to reduce vehicle development time using AI

Hyundai Motor Group is implementing a group-wide artificial intelligence (AI) strategy to reduce the new vehicle development cycle from 43 months to 30 months. This initiative aims to match the rapid development speeds of Chinese competitors, who currently produce new models in 18 to 24 months.

The company is utilizing a dual approach: a “bottom-up” method where employees freely experiment with AI tools like the internal platform ‘H Chat,’ and a “top-down” method focused on large-scale process innovations. Key cross-functional goals include reducing vehicle development time and cutting claim costs by 30%.

To manage this transition, the group established an AI Governance Task Force (TFT) to oversee AI transformation (AX) across more than 500 entities. The TFT is expected to conclude its primary mission by June 2025, ahead of its original two-year schedule. The group has also formed an AI Ethics Committee to address philosophical and organizational challenges, such as the use of AI in human resources and robotics.

Currently, over 70% of Hyundai Motor Group employees use AI tools weekly. The company is also launching ‘H-Launch,’ a platform designed to allow non-developers to deploy AI-driven tools created for their specific tasks to their colleagues.