Back in 2023, BMW was widely panned for its plan to offer heated seats as a paid subscription. Steve Basra, Google Cloud’s global head of automotive, believes that the tides have turned since then on what consumers are willing to pay extra for, upending automakers’ plans to create new subscription-based revenue streams. “Subscription fatigue is definitely a real thing after Covid,” Basra said. “Customers are less willing to pay for things that they believe they should just get when they buy the second most expensive thing in their life.” After a home, that would be a new vehicle, which costs an average of nearly $50,000 in today’s market. But Basra is bullish on automakers using AI to personalize and improve the in-vehicle experience, thereby creating a value proposition consumers can’t deny. “A lot of the transformation hasn’t been achieved, and I think AI is the one technology that is going to transform the industry,” Basra said of the industry’s long-hyped transition to EVs and software-defined vehicles, “whether they want to or not.” Tech Brew recently caught up with Basra, an auto industry veteran who spent 25 years at Toyota, at Google’s Detroit office, where he explained how Google Cloud is helping automotive clients implement AI across their value chains. Keep reading here.—JG |