Between now and 2040, 55 million driverless cars are expected to take to the roads worldwide. There is still a long way to go, but the day will come when every car is smart enough to earn the right to drive, Rolando Grandi writes in an article for finews.first.
This article is published on finews.first, a forum for authors specialized in economic and financial topics.
In the 19th century, the burgeoning oil industry and the development of the internal combustion engine sparked one of the greatest economic, technological and social revolutions in history, as well as the emergence of modern means of transportation: cars, planes, boats propelled by combustion engines, etc. It was the arrival of Fordism and the development of vehicle infrastructures that paved the way for the introduction of the automobile into our daily lives. Within the space of 10 years, cities adapted themselves to the car, relegating the horse to the status of recreational activity.
Now it is our turn to experience radical change: the digital revolution that is transforming the economy thanks to the advent of Artificial Intelligence (AI), which will gradually have an impact on every sector. Our cars will not be left out of this revolution now that the race to self-driving cars has begun.
«Not to mention Apple»
Today Waymo is the autonomous driving technology leader, with more than 32 million kilometers driven in real-world conditions and more than 15 billion kilometers in simulation. A subsidiary of Alphabet, the parent company of Google, Waymo is developing intelligent taxis without a human driver equipped with an array of sensors allowing AI to safely operate the car. Right now, in Phoenix, Arizona, you can test out this ride-hailing service yourself.
During the management team’s trip to San Francisco in 2019, we noticed many autonomous cars navigating through the city, where, since February 2021, Waymo has been offering a ride-hailing service. Other companies such as Zoox (bought by Amazon) or Uber (in the process of being sold) are also contenders. Not to mention Apple, the largest company in the world, which is involved in the development of several autonomous driving projects and negotiating with Korean carmakers to build their driverless cars.
«By orchestrating the flow of cars in cities, the system should drastically reduce traffic congestion»
The benefits are numerous, with none more important than the potential for less congested cities. By orchestrating the flow of cars in cities, the system becomes more efficient and should drastically reduce traffic congestion. Safety also stands to benefit. Self-driving cars can communicate with each other, and AI algorithms will soon prove to be more responsive than human beings. Moreover, they will never be tired or distracted. Lastly, drivers will be freed from the task of driving, turning their cars into workspaces or places of escape.
This accounts for today’s massive investments in infotainment, which will transform the car into a comfortable, user-friendly space with a sound system, screens and connectivity. It comes as no surprise that a company like Samsung bought Harman Kardon in 2016 in order to secure a foothold in the car of tomorrow and make it possible for you to control your car with your smartphone.
«There will always be a few road circuits near smart cities»
Between now and 2040, 55 million driverless cars are expected to take to the roads worldwide and be adopted on a massive scale by 2050, according to management consulting firm, McKinsey. There is still a long way to go, but the day will come when every car is smart enough to earn the right to drive.
And, like the leisure activity horse riding became in the 20th century, there will always be a few road circuits near (smart) cities where driving enthusiasts can enjoy their favorite leisure activity.
Rolando Grandi has been a fund manager at La Financière de l'Échiquier (LFDE) since 2017, where he focuses on artificial intelligence (AI). The Bolivian likes to describe himself as a «geek» and combines several years of experience as a financial analyst with excellent knowledge of the tech and AI industries. He is a graduate of the IAE School of Management Lyon and started his career at Roche-Brune AM as an international equity analyst.
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