2 Letters, 4 Principles: Mercedes' Way of Responsible AI
Company Upholds Trust, Responsible Use and Privacy at Sustainability Dialogue 2024
Mercedes-Benz has taken major steps to incorporate artificial intelligence across its operations, all while staying true to its core principles of integrity, strong governance and sustainability. The company's comprehensive strategy to make responsible use of AI influences decisions from the executive level down to the factory floor. As vehicles become increasingly datacentric and autonomous, the company said data responsibility is a cornerstone of maintaining a sustainable and ethical business model.
AI at the Heart of Operations
Mercedes extensively uses AI to enhance its operations and customer experiences and drive efficiency. But what truly sets it apart is a set of principles that forms the basis of developing and deploying AI.
In the past, intelligent systems were repeatedly the target of criticism. This included chatbots that used offensive language and facial recognition algorithms that practiced discrimination. The use of AI requires some clear guidelines.
"We adhere to stringent data principles, maintain a clear data vision and have a governance board that integrates our IT, engineering and sustainability efforts," Renata Jungo Brüngger, a member of the board of management for integrity, governance and sustainability at Mercedes-Benz Group, said during the company's recent India Sustainability Dialogue 2024.
AI is being applied to optimize supply chains, predict vehicle maintenance and personalize customer interactions. Each of these use cases is developed with a strong focus on ethical considerations, ensuring that AI systems operate within a framework of privacy, fairness and transparency.
Trustworthy Handling of Data
The company understands that the effectiveness and ethical integrity of AI systems depend on the quality and management of data.
"Data governance is the backbone of our AI strategy," said Umang Dharmik, senior vice president at Mercedes-Benz R&D India. "There are stringent data governance frameworks to ensure responsible data management throughout its life cycle. This not only ensures compliance with global regulations but also fosters trust with our customers and stakeholders."
"With advanced technology in our vehicles, it is vital that we obtain customers' consent on how their personal data is used. We ensure data is handled ethically and securely, and that it is deleted after its intended purpose is fulfilled. There is a data governance board with two additional board members. We meet every quarter with the IT department to review and improve our practices," Brüngger said.
An example of how the company handles personal data is its passenger occupancy detection feature. Modern vehicles are equipped with cameras that detect whether a passenger is present. The data collected by the camera is processed by a pre-trained model stored on the car’s chip. Once the camera detects a passenger, the system identifies them within seconds, sends the necessary signal, and immediately destroys the data. This ensures the data is used strictly for its intended purpose and is neither transmitted elsewhere nor used for additional training.
"We take data usage for AI seriously. All our AI use cases undergo a thorough review," Dharmik said. "This ensures our AI applications are developed and deployed in line with ethical standards and our commitment to digital trust."
Driving Sustainability Through AI and Data Governance
Mercedes-Benz leverages AI to minimize the environmental impact across the value chain. For instance, AI-driven analytics optimize energy consumption in manufacturing plants, helping to reduce emissions and waste. AI is also applied during the design phase to create more efficient and eco-friendly vehicles.
"AI is capable to address issues of sustainability. It can help us proactively identify inefficiencies, cut waste and make better-informed decisions that align with our sustainability goals," Dharmik said.
One standout example of AI-driven sustainability at Mercedes-Benz is in battery development for electric vehicles. The company applies AI to analyze extensive data from battery testing and real-world performance, leading to the creation of batteries that are more efficient, durable and environmentally friendly. This not only improves the performance of electric vehicles but also reinforces Mercedes-Benz's commitment to reducing its carbon footprint.
Digital Twins: A Sustainable Approach
Mercedes-Benz has been increasingly relying on its engineering teams in India to develop and enhance the digital twin technology of its vehicles. Thousands of engineers are leading this innovation, helping the technology reach a high level of maturity. As a result, the company can now delay physical vehicle production until the digital twin has been thoroughly tested and validated. This approach not only accelerates development but also reduces costs and minimizes the environmental impact of creating multiple physical prototypes. The digital twin technology is also used in developing battery management systems.
"As vehicles become more software-driven, the digital twin allows engineers to simulate and optimize various software functions before they are applied to the physical car. This is especially critical for complex systems like battery management, where precision is key for performance and safety," said Manu Saale, managing director and CEO of Mercedes-Benz Research and Development India.
In its latest advancements, the company is leveraging Google Cloud technologies to build the next generation of advanced driver assistance systems. The automaker's next-generation internal development and test platform for autonomous driving will use Google Cloud as its foundation, enhancing the efficiency and flexibility of product development. Google Cloud's ability to process massive datasets and scale AI workloads will also support the development of more intelligent, AI-driven vehicles.
The company has also introduced a beta version of smart voice-assisted controls using OpenAI's ChatGPT through Microsoft Azure's OpenAI service. This feature offers users a more interactive experience and allows for personalized customization.
