Google Cloud, Mercedes-Benz accelerate AI transformation in automotive e-commerce and customer experience

In an announcement that highlights the growing interconnection between artificial intelligence (AI) and the automotive industry, Google Cloud has unveiled an expansion of its strategic partnership with Mercedes-Benz. This collaboration is set to transform key customer experiences through the integration of AI and generative AI (gen AI) technologies, particularly on Google Cloud’s Vertex AI platform. The deal, a significant marker of the tech-driven evolution in automotive e-commerce and customer service, puts the spotlight on the seamless integration of cutting-edge technologies into consumer interactions.

Mercedes-Benz plans to significantly enhance its online storefront with the deployment of a gen AI-powered smart sales assistant and new Google-quality search and recommendation capabilities. The German automaker is also set to augment its call center operations with Google Cloud AI, aiming for a more efficient and helpful customer experience. Furthermore, the partnership will leverage AI and gen AI tools, including Vertex AI and Google’s Gemini models, to tailor marketing campaigns more personally and relevantly to customers globally.

Ola Källenius, Chief Executive Officer of Mercedes-Benz, emphasized the importance of collaborating with top-tier companies like Google. “Partnering with the very best in their respective fields is an important part of our software strategy – Google is the perfect example of that. With Google Cloud, Mercedes-Benz is building new ways to deliver the most intelligent vehicles to our customers and to create personalized, intuitive experiences,” Källenius stated.

The initiative reflects a broader trend in the automotive sector towards incorporating online research and shopping into the car-buying process. Through Google Cloud’s AI technologies, Mercedes-Benz aims to revolutionize its e-commerce approach, making online storefronts an integral part of the showroom experience. Slated for deployment in 2024, the Mercedes-Benz Virtual Assistant (MVA) will offer natural language interactions, assisting customers in finding suitable car models, scheduling test drives, or initiating purchases. Additionally, Mercedes-Benz is exploring the incorporation of Vertex AI Search to embed superior search and recommendation functions directly into its websites.

Sundar Pichai, CEO of Google and Alphabet, expressed his excitement about the partnership. “Mercedes-Benz has a long history of using technology to create exceptional experiences for their customers,” Pichai said. “We’re excited to help them apply Google’s advanced AI to engage with customers in new ways from improving customer service to optimizing their website experience, with much more to come from this collaboration in the future.”

The partnership has already seen the deployment of Google Cloud’s conversational AI technology, Dialogflow, in Mercedes’ U.S. call centers, handling over a million calls in more than 30 languages. Building on this success, Mercedes plans to extend its use to other markets, further embedding AI into its customer service operations.

Moreover, Mercedes-Benz is leveraging Google Cloud technologies in the development of its next generation of Advanced Driver Assistance Systems (ADAS), with Google Cloud serving as the backbone for Mercedes’ internal development and test platform for autonomous driving. This collaboration underscores Google Cloud’s capability to process vast amounts of data and scale AI workloads, crucial for enhancing vehicle intelligence and driving innovation in the automotive sector.

This strategic partnership, evolving since February 2023, marks a new phase in the relationship between Google and Mercedes-Benz, encompassing the use of Google Maps Platform for navigation, YouTube for infotainment, and a suite of Google Cloud’s AI, data, and open infrastructure solutions.

The expanded partnership between Google Cloud and Mercedes-Benz is a testament to the transformative power of AI and gen AI technologies in the automotive industry. By enhancing e-commerce capabilities, customer service experiences, and vehicle intelligence, this collaboration sets a new benchmark for the integration of technology in automotive design and customer interaction. As the industry moves towards a more digital and interconnected future, partnerships like these will play a pivotal role in shaping the next generation of automotive innovation.