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XU Heyi: Auto manufacturers who make automobile collaboratively shall survive. Auto manufacturers who make automobile behind closed doors will perish.

2017-08-26

On 24 August, 2017 Global Automotive AI Conference co-funded by auto.qq.com and Auto Innovation Park was held in Shanghai. Such conference was themed on boosting the application of artificial intelligence technology resources into automobile sector, and boosting the development of global auto industry and future transportation. More than 30 senior executives from global top technology companies and automobile enterprises and domestic and overseas academic experts gathered in Shanghai to discuss the connection of artificial intelligence technology with the future auto industry.

Party secretary and president of BAIC Group XU Heyi made a keynote speech themed with Starting the Future with Concerted Evolution. He said that the combination of automobile and AI will bring profound impact on temperament and appearance of the whole auto industry. He put forward three points:

1. Essential attribute of automobile will make a qualitative change; 

2. Business model of automobile will be overturned drastically; 

3. Production mode of automobile will make a profound change.

Moreover, he specified BAIC Group’s future strategic focuses: 

1. Seize new opportunities of artificial intelligence and advance intelligent manufacturing deeply;

2. Focus on application and development and cooperate with technology enterprises;

3. Stress on development and application of big data and start the new era of business intelligence.

The Speech by President XU Heyi: 

Dear leaders, guests and entrepreneurs, 

Good morning!

It is my great honor to be invited here to participate in Global Automotive AI Conference, and to discuss the integrated development of automobile and artificial intelligence with global industrial experts. It is an era of change, as well as an era that "still waters run deep". On the one hand, with the further development of scientific and technological revolution, emerging technologies spring up constantly to shape brand-new possibilities. On the other hand, with the impetus of technology reform, industry circles accelerate fusion to advance technological application, which converts brilliant technological revolution into pragmatic industrial revolution, and thereby boosts the entire commerce and life into a new era beyond the dream.

In such a revolution of knocking at the door of era, artificial intelligence, no doubt, is the most important force. In recent years, quick evolution of model algorithm, accelerated enhancement of chip technology, advent of cloud computing, big data, high precision sensor, 5G communications network and so on, all the these armed the artificial intelligence with a high performance “brain”, and sharp “five sense organs”, brought the artificial intelligence into a commercialized “golden age”, and brought a huge impact on increasingly-innovative auto industry over the past century, which will change the temperament and appearance of auto industry from at least three aspects:

1.Essential attribute of automobile will make a qualitative change: conversion of automobile from the transportation to the intelligent mobile space.

If the evolution from traditional mobile phone to smart phone is 2D intelligence revolution, the evolution from traditional automobile to intelligent automobile starts 3D intelligence revolution. Traditional pure-transportation type automobile is vanishing, while an era of intelligent automobile is coming. Automobile equipped with artificial intelligence technology can assist us in driving and safety protection, perform adaptive adjustment of in-car environment, driving control system and entertainment system through learning auto owners’ use habit data to create the optimal driving/riding experience of serving auto owners actively, which converts dull driving into a comfortable encounter in the independent space. Moreover, artificial intelligence of automobile can dialogue with the user’s mobile phone, wearable device, intelligent home and intelligent transportation system at any time via network, and can communicate with the world by means of V2X to realize all-round intelligent treatment function. Automobile is being converted into all-round intelligent mobile space.

2. Business model of automobile will be overturned drastically: the accelerated advent of great cooperation and platform-based era.

The evolution of artificial intelligence lies in essential attribute of automobile, as well as business model of automobile. The advent of artificial intelligence will promote the separation of automobile’s ownership and use right; that is to say, the purpose of driving automobile is not for ownership but for use. Regardless of traveling, entertainment or pure enjoyment of driving, people can obtain more convenient, more efficient services through sharing. Subsequently, automobile operator will replace traditional dealers, and keep close tie with automobile manufacturers. The era of automobile intelligence sharing is upcoming. Future automobile society will, with the help of intelligent transportation system, big data analysis, vehicle manufacturing, core chip manufacturing, and intelligent netlink framework, connect governments, vehicle enterprises, technology enterprises and network operators together. Auto industry will become co-creation ecology based on the diversified resultant forces under the reform of business model.

3. Production mode of automobile will make a profound change: co-frequency resonance of intelligent manufacturing and customers’ demands.

With the constant penetration of artificial intelligence technology, auto industry, as the pearl of industrial manufacturing, will take the lead in performing the evolution of intelligence in the production manufacturing sector. In the consumer market research, product manager can collect consumers’ advice by use of big data VOC method to make a product scheme closer to the market. In the research, development and design, engineer can collect the consumers’ use data by use of the users’ vehicle-mounted sensor, which can obtain the materials of promoting the evolution of unmanned driving technology, and can bring micro-innovation inspiration for iterative research and development. In the production manufacturing, intelligent plant can perform strict planning and monitoring of production process by use of such up-to-date means as industry cloud, co-bots and predictive maintenance, etc. to enhance efficiency and reduce errors, which can provide consumers with high-quality, individualized products, and realize co-frequency resonance with consumers’ demands, and create the better automobile life.

As a whole, with the penetration of artificial intelligence, auto industry is making radical changes. The past auto industry is the machine manufacturing industry, which looked for cold beauty of metal in the industrialized procedures. The future auto industry will become a technological industry, which will realize the diversified harmonious advance under the intelligent structure of hardware, software and data. The competition of past auto industry is the competition between independent enterprises, while the future auto industry is an IoE platform, which will seek for the win-win situation under the comprehensive scene in the diversified cooperation of people, vehicle, road, network and business. The past auto industry has paid more attention to production and sales, with the product sales as end point. The future auto industry will pay more attention to service, with traveling as center, based on sharing and interconnection, which will become the intelligent traveling solution vendor. All the up-to-date tides, such as platform, sharing and IoE, are based on the artificial intelligence. In the evolution of business model of auto industry, artificial intelligence is becoming a decisive supporting factor.

In the face of deeply-integrated automobile and artificial intelligence technology, in the face of the summoning from goddess of technology, BAIC Group, as an ambitious large-sized enterprise, will foresee opportunities and overturns, change and act according to actual situation. With “intelligence and netlink” as key technological orientation, with intelligent netlink new energy automobile as breakthrough point, with the principle of “foresighted layout and open cooperation”, BAIC Group will grasp our own comparative advantages, seize key nodes of automobile artificial intelligence, focus on technological application, and strive to seize technological highland of artificial intelligence.

1. Seize new opportunities of artificial intelligence and advance intelligent manufacturing deeply;

In the tide of artificial intelligence, BAIC is converted from an industrial enterprise to an intelligent manufacturing and sharing economy. The artificial intelligence technology has provided effective support in reducing cost effectively, knowing well about consumers, and meeting consumers’ demands efficiently. In the research and development sector, BAIC’s VOCe+ project obtains the consumers data from social media, and multi-dimensional consumers’ feature information from own huge multi-industry service ecology to know well about consumers’ demands. In the manufacturing sector, Beijing Benz’s engine plant, as a model of Germany Industry 4.0 and China manufacturing 2025, integrates advanced production equipment and top-end manufacturing process with highly-digitized production mode, and builds a networked “ecosystem” in combination of digitized virtual plant and real plant through intelligent production, intelligent logistics, intelligent management, etc., which has been awarded “Green Manufacturing System Demonstration Plant” by Ministry of Industry and Information Technology of the P.R.C., and “Global Best Plant” in Munich Germany. In terms of the consumer orientation, BAIC BJEV’s C2M intelligent plant, in the intelligent manner, realizes the transparent communication of information between customers and manufacturer, and information integration and instant communication between vendors and manufacturer, realizes individualized mass production, and meets customers’ individualized requirements efficiently, which has been awarded the first prize of Nation Management Innovation Project, and can provide good references for intelligent upgrading of manufacturing enterprises.

2. Focus on application and development and cooperate with technology enterprises.

The era of intelligence is an open era. Auto manufacturers who make automobile collaboratively shall survive. Auto manufacturers who make automobile behind closed doors will perish. After the transformation into manufacturing service type and innovation-oriented enterprise was proposed since 2014, BAIC has proposed the concept of “self-reliance and in-depth cooperation” in the intelligent netlink sector to realize leapfrog development on the shoulders of giants in such new sector. In the application and development sector, with the aided driving as main research orientation, BAIC has developed such key technologies as vehicle-mounted multi-sensor environment sensing technology, human body feature identification technology, intelligent automobile V2X technology, etc., which have been applied to some vehicle models, with very good market effect. In the cooperative development sector, with the piloted driving as main research orientation, in cooperation with Baidu in the passenger vehicle, BAIC has launched NOVA-PLS intelligent development strategy and created three major technology platforms, for the purpose of realizing the product application in the four stages, and building a “three-dimensional integrated” all-round intelligent system integrating intelligent driving “NOVA-pilot”, intelligent netlink “NOVA-link”, and intelligent cabin “NOVA-space”.

3. Stress on development and application of big data and start the new era of business intelligence.

Big data are the basic factors of era of intelligence, as well as the basic tool for existence and evolution of intelligence. BAIC has paid close attention to the development and application of big data in the process of intelligence of automobile. In the big data application sector, BAIC Group focuses on both products and services. In the products, BAIC BJEV’s big data center can support storage of 100,000 vehicles, and concurrent monitoring of 20,000 vehicles. Such center can perform early warning monitoring management of electric vehicle and provide butler service system support, and also can identify driving behaviors and diagnose vehicle conditions, which can accumulate the big data for design, research and development of vehicle, and provide the foundation for product improvement. In the service sector, BAIC builds the entrance through Penglong platform, traveling platform and new energy platform, provide consumers with all-round services based on “traveling” scene, and precipitate in the consumers’ mass data to provide fundamental guarantee for intelligent research and development iteration.

Dear leaders, guests and entrepreneurs, In the deep integration of artificial intelligence, auto industry is accelerating its variation, starting its own transcendental evolution, and opening the door of new era. Its range of coverage and the depth of reform are far beyond the commercial value. Through the first attempt, we think that we still have a long way to go. Its success is far beyond the range of ability of independent automobile enterprise or independent technology enterprise, and must depend on multi-way cooperation. BAIC, as an open enterprise, will be the opener in such an ear of artificial intelligence. We warmly welcome the like-minded people in the automobile artificial intelligence sector to join our cooperation platform through a variety of approaches, for the purpose of making contribution to the greatest reform of this era and starting the better tomorrow of human beings!

Thanks!

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