Al and Virtual Engineering Redraw the Playbook

As software-defined mobility reshapes vehicles, Al-driven simulation and virtualized electronics are emerging as essential tools to manage cost, complexity, safety, and time-to-production pressures

- Writes Niharika Singh

The automotive industry is entering a decisive phase where software, rather than hardware alone, defines competitiveness and profitability. As OEMs simultaneously address electrification, autonomy, connectivity, and sustainability, traditional engineering and design-to-cost approaches are proving insufficient. Testing and validation budgets have surged into the hundreds of millions, forcing automakers to rethink how vehicles are conceived, verified, and industrialised.