Mercedes-Benz is integrating conversational artificial intelligence into its vehicles through a new partnership with Liquid AI. This initiative focuses on adjusting in-car features like infotainment and heating systems rather than autonomous driving capabilities. The company aims to enhance competitiveness in a challenging market environment.
Liquid AI, founded in 2023, specializes in models that operate directly on devices to improve privacy and reduce latency. This approach contrasts with cloud-based processing. Mercedes-Benz North America CEO Jason Hoff stated that enabling more natural conversational interactions is a key priority for the company's customer experience strategy.
The automaker is implementing AI across its broader business operations as part of an efficiency program. This includes monitoring supply chains and production processes to identify potential delays. CEO Ola Källenius emphasized that these efforts are intended to build a faster and more efficient organization amid cooling demand in China.
According to Gartner projections cited in the report, on-device AI models are expected to handle 30% of user-initiated AI tasks in enterprise applications by 2029, up from nearly zero in 2026. European manufacturers like BMW and Audi are also exploring similar AI integrations to compete with software-native rivals.
