Volkswagen Group said it will invest up to 1 billion euros in artificial intelligence (AI) by 2030. It will be used to develop AI-based vehicles and industrial applications and to expand high-performance IT infrastructure.
At IAA Mobility 2025 in Munich, Germany, Volkswagen Group confirmed that as part of its existing investment plan it will invest up to 1 billion euros (about 1.6 trillion won) to expand artificial intelligence (AI) by 2030.
Hauke Stars, member of the Volkswagen Group board responsible for IT institutional sector, said, "Volkswagen Group is opening the next stage of its journey to become a global leader in automotive technology through AI. AI is the key to enhancing speed, quality and competitiveness across the entire value chain from vehicle development to production. This is intended to accelerate the development of attractive and innovative vehicles so they can be delivered to customers faster than before. To that end, we are implementing AI in a scalable and responsible way with clear industrial value. The goal is to ensure there are no processes without AI applied."
AI is already being used across all of Volkswagen Group's core business areas. More than 1,200 AI applications are currently running across the group, and hundreds more are being developed or are about to be deployed. In the long term, the group expects that by 2035 using AI in a consistent and scalable way across the entire automotive value chain will yield efficiency improvements and expense reductions totaling up to 4 billion euros (about 6.5 trillion won).
For example, Volkswagen Group is working with partner Dassault Systèmes to build an AI-based engineering environment that spans all group brands and regions in vehicle development. It is designed to dramatically accelerate the development process by supporting engineers through virtual testing and component simulation. This collaboration, together with other initiatives, aims to shorten group brands' product development cycles to under 36 months. That is at least 25% (about 12 months) faster than currently.
AI integration is also making progress in production. Based on the group's proprietary digital production platform (DPP), the 'factory cloud' that consolidates more than 40 business sites, Volkswagen Group is continuously introducing new AI applications into manufacturing processes. This helps optimize complex interactions between processes in vehicle assembly, use energy and materials more efficiently, reduce expense and contribute to cutting carbon dioxide emissions.
AI-based applications also strengthen cybersecurity and promote knowledge sharing across the group. These are key elements for digital transformation and the group's long-term sustainability.
Volkswagen Group is committed to actively leading the future of AI in Europe and supporting political and economic frameworks at the national and European levels. In an increasingly challenging environment marked by rising energy prices, high location expenses and administrative complexity, the group says political support is essential to drive AI innovation in Germany and Europe.
Hauke Stars added, "Volkswagen Group supports an innovation-friendly development of European regulation. We also need targeted incentives. The group must make greater use of its own capabilities. This includes, above all, strengthening university and research institution spin-offs and support programs that enable scientific knowledge to be rapidly converted into market-applicable applications."
[OSEN]