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AI Could Revolutionize the Automotive Industry | Self Driving cars are Future

Hello and welcome! It is good to have you here! Today, I am going to talk about the influences Artificial Intelligence has on the automobile industry and explain how the introduction of this technology will affect the transportation sector and the economy. Stay tuned if you want to find out more! Let me start by defining artificial intelligence and then explaining how it is used in autonomous cars. AI is defined as a form of intelligence that can be used by an Agent to make decisions based on a given environment with the goal to maximize its chance of achieving some objective. So let me break that up for you and illustrate how this definition fits the autonomous vehicle example. How the definition of AI applies to the autonomous vehicle, we have to define four terms: Agent to make decisions the environment, and the goal. The agent would be represented by the autonomous vehicle. Next, to make decisions would be represented by the actions like accelerating, breaking, turning, slowing down, parking, etc., moving on, the environment would be represented by traffic, obstacles like people, trees, and finally the objective. It would be represented by getting you safely from point A to point B. Now that we have defined AI, I will briefly mention the definition of an autonomous vehicle and explain why companies spend billions of dollars to make them commercially viable. In short, a self-driving vehicle is defined as a vehicle that uses data given to it by its sensors, cameras, radars, and artificial intelligence to travel without needing a human driver. So why is this innovation important and how will it affect us. Automobile manufacturers estimate that the autonomous vehicle market will grow from 5.6 billion in 2018 to 60 billion by 2030. This represents more than a ten-fold increase in the span of 10 years! This is rougly a double of the market size every 3 years! Automobile manufacturers clearly have big hopes for this technology and they imagine self-driving cars will eventually replace the regular car. Advances have been made in the technology and some cities have even introduced test for these, but nothing commercially viable has yet to enter the market! So why are manufacturers placing so much value onto self driving vehicles and how will self driving vehicles impact our economy? The first major benefit is that you will not need to drive your car anymore! The computer will take over this mundane task. This will free you up to do tasks that you normally were not able to do while driving, meaning that now you can watch a movie, do work, or talk with a friend instead, without having to focus on driving. Overall, this technology will make people better off as it frees them to do other tasks besides concentrating on the road! Furthermore, if there are a large portion of self driving cars out there, congenstion can be reduced as these vehicles will communicate with each other and predict where possible traffic jams may occur and reroute vechiles to avoid standstills! This technology will be environmentally friendly and will save you gas and travel time! Autonomous cars, however, do not only have upsides. Only in the United States, some forecasters predict that the introduction of autonomous vehicles will lead to four million job losses across all sectors. This includes taxi drivers, delivery people, truck drivers, etc. This shift in technology will create a huge shift in the way the economy works. Many people will have to retrain to stay relevant in this highly advanced economy. Many people who have put their livelihood, will have a dramatic wakeup call once this technology will become commonplace. In New York, for example, a taxi medallion cost approximately 200,000 USD. Many taxi drivers view this as an investment and even their retirement nest egg. During their life, they earn their money by driving the cab, but in the near future once they retire, sell them to live off the income generate by the medallion! Once self driving cars become common place, these medallions will become worthless, as cars will simply have no driver that needs this medallion. So overall, this technology not only has the power to put people out of a job, it also has the power to erode peoples’ pensions! The introduction of powerful technologies like AI can have ripple effects all throughout the economy as in the case of self driving cars. On the one hand, it will make people more efficient in what they do, but on the other hand, it can cost you not only your job, but maybe even your retirement! Government has to be very careful about the introduction of this technology and has to come up with some sort of plan to protect people that are not well equipped for this change. Thank you for listening.