Tech: AI and Electric Vehicle Partnerships Set to Dominate 2024

In the fast-paced world of technology, 2023 marked a significant milestone for generative AI, as it went mainstream across various industries. From creating computer code to artwork and essays, generative AI systems have become an essential tool, with Microsoft’s ChatGPT leading the way. However, Alphabet, the owner of Google, recently unveiled Gemini, an AI that outperforms ChatGPT, signaling fierce competition in the industry.

Despite the excitement surrounding generative AI, some experts are cautioning against getting too carried away. Chief analyst Ben Wood warns that the high costs of developing and running generative AI systems, along with potential regulatory and legal battles, may slow down the industry’s growth in 2024. Nevertheless, investors continue to pour billions of dollars into generative AI start-up firms, hoping to back the next big player.

On the other hand, the electric vehicle (EV) market is facing its own set of challenges in 2024. Despite the upcoming milestone of the one millionth all-electric car hitting UK roads, major automakers like Ford, GM, and Tesla have paused their plans to expand EV production. Mercedes-Benz even described the market for electric vehicles as “brutal,” citing a price war and supply chain issues.

Auto market analyst Matthias Schmidt predicts a stagnant year for EV sales across Europe in 2024, with the exception of the UK, which is expected to see growth due to the introduction of the zero emission vehicle (ZEV) mandate. This mandate will require over a fifth of vehicles sold to be electric, with the target expected to reach 80% by 2030, creating a buyer’s market for EVs.

As manufacturers rush to meet ZEV mandate targets, they may offer hidden price cuts through financing deals and higher trim levels at no extra cost. Despite the challenges, the future of both generative AI and electric vehicles remains promising, with technological advancements and market shifts set to shape the industry in the years to come.