As of August 28, 2025, artificial intelligence and automation are fundamentally altering how people interact with vehicles. Image: Meric Dagli/Unsplash n nJohn Goodson, Executive Vice-President and Chief Product and Technology Officer at CCC Intelligent Solutions, highlights how AI, connectivity, and advanced safety systems are redefining mobility. n nModern vehicles are no longer just mechanical transport; they are sophisticated digital platforms equipped with real-time connectivity and intelligent assistance features. Systems like Automatic Emergency Braking (AEB) and Advanced Driver Assistance Systems (ADAS) are now standard in many new models. AEB is mandated in the European Union and will be required in all new light-duty vehicles in the U.S. by 2029. These tools aim to reduce collisions, especially in urban and low-speed environments. n nDespite technological advances, global road safety remains a challenge. The World Health Organization reports 1.3 million annual traffic fatalities and 20–50 million injuries. A key issue is driver behavior: some overestimate the capabilities of semi-autonomous systems, believing they can fully replace human attention, while others disable safety features due to distrust or discomfort. n nEven minor accidents now involve higher repair complexity. Today’s cars contain over 1,400 semiconductor chips and tens of thousands of components. Electronic systems now make up about 40% of a vehicle’s total cost, driven by infotainment, sensors, and automation. Repairs often require recalibrating sensors and replacing expensive modules, increasing both time and expense. In the U.S., average repair costs for internal combustion engine vehicles are nearly 40% higher than in 2020. Electric vehicles require about four additional labor hours, leading to labor costs that are 30% higher on average. n nThe post-accident ecosystem is becoming more integrated. From crash detection via telematics to automated claims processing and instant repair scheduling, AI enables a seamless response. Cloud-based networks connect automakers, insurers, repair shops, and towing services, enabling faster recovery and greater transparency. Digital workflows powered by AI can generate damage assessments in seconds, improving efficiency across the claims lifecycle. n nIn the U.S., nearly 30% of auto insurance claims are now initiated through digital photo uploads, allowing AI to streamline damage evaluation. As vehicle complexity grows, so does the need for intelligent coordination in repair and claims management. Drivers increasingly expect swift, frictionless recovery when incidents occur. n nHowever, rising costs, labor shortages, and accessibility challenges remain. The industry must balance innovation with affordability and equitable access. Responsible deployment of AI—ensuring fairness, privacy, and transparency—is critical to building public trust. n nInvestment in AI across financial services reached $35 billion in 2023 and is projected to rise to $97 billion by 2027, with significant allocations in insurance and payments. As collaboration increases and governance frameworks mature, the sector is moving from early adoption to delivering enterprise-wide value. n nThe driving experience is now deeply digital. As vehicles become more connected, the processes following accidents will mirror the same technological sophistication built into the cars themselves, ensuring better outcomes for drivers and stakeholders alike. n— news from The World Economic Forum n
— News Original —nHow AI and automation are changing our driving experience n nAI and automation are transforming how we drive. Image: Meric Dagli/Unsplash n nJohn Goodson n nExecutive Vice-President, Chief Product and Technology Officer , CCC Intelligent Solutions n nVehicles are evolving as AI, automation, connectivity networks and advanced safety systems reshape how people drive. n nAI and automation are transforming accident response, claims and repair, making recovery faster and more efficient. n nInvestment in AI and automation is accelerating, pointing to a future where safer journeys and smoother post-accident experiences define a new era of driving. n nAcross the world, summer often signals a surge in travel – especially by car. Whether it’s a weekend getaway, vacation or simply commuting to work, our roads are visibly more congested. It’s just not in markets such as the USA. Globally, reports show that driving volumes have not only returned to pre-pandemic levels but are surpassing them. According to the OECD, vehicle miles travelled are returning to or exceeding 2019 levels across much of North America, Europe and the Asia-Pacific. n nAt the same time, both the experience of driving and what happens after an accident have changed dramatically. Technology is not only reshaping how people get from point A to point B but also changing how people are supported when things go wrong. n nDiscover n nHow is the World Economic Forum creating guardrails for Artificial Intelligence? n nIn response to the uncertainties surrounding generative AI and the need for robust AI governance frameworks to ensure responsible and beneficial outcomes for all, the Forum’s Centre for the Fourth Industrial Revolution (C4IR) has launched the AI Governance Alliance. n nThe Alliance unites industry leaders, governments, academic institutions, and civil society organizations to champion responsible global design and release of transparent and inclusive AI systems. n nThis includes the workstreams part of the AI Transformation of Industries initiative, in collaboration with the Centre for Energy and Materials, the Centre for Advanced Manufacturing and Supply Chains, the Centre for Cybersecurity, the Centre for Nature and Climate, and the Global Industries team. n nThe rise of smarter, more complex vehicles n nToday’s vehicles are far more advanced than they once were. They function as complex digital platforms with embedded safety systems, real-time connectivity and advanced automation. Features like Automatic Emergency Braking (AEB) and Advanced Driver Assistance Systems (ADAS) are now standard in many new vehicles. AEB is, in fact, mandated in the EU and required in all new light-duty vehicles in the USA as of 2029. n nThese technologies are designed to help drivers avoid accidents or reduce their severity, particularly in congested urban settings and lower-speed environments. n nGlobal traffic accident rates, however, remain high. According to theWHO, road traffic crashes kill 1.3 million people each year and injure 20-50 million more. n nPart of the paradox here lies in the human element of how today’s drivers interact with technology. Many drivers are still adjusting to semi-autonomous features, while a growing number may overestimate the capabilities of their vehicles. For example, they might believe ADAS can replace their need to be attentive on the road. Others may disable these systems entirely due to discomfort or lack of trust. n nWhen safer tech drives higher repair complexity n nEven when accidents are less severe, the cost and complexity of repairing vehicles with advanced technology have grown significantly. Modern cars can contain over 1,400 semiconductor chips and tens of thousands of parts. In terms of vehicle pricing, electronic components now account for roughly 40% of a vehicle’s cost, driven by innovations in infotainment, sensors, connectivity and automation. n nRepairing these vehicles often requires specialized recalibration of sensors and replacement of costly modules. It’s no surprise, then, that repair costs are high and are likely to increase. For example, in the USA, the average cost to repair an internal combustion engine (ICE) vehicle is nearly 40% more than it was in 2020. Research also shows that electric vehicle repairs require nearly four additional labour hours than traditional ICE vehicles, resulting in labour costs averaging 30% higher. n nA network that responds n nThe connection between vehicle platforms with accident response and the claims and repair management teams is also becoming much stronger. From the moment a crash occurs, for example, a series of systems and technologies may trigger: n nTelematics-based crash alerts that notify emergency responders n nReal-time dispatch of roadside assistance or towing. n nAutomated claims intake, powered by AI, directly from a mobile device. n nSimultaneous scheduling of repair appointments at a network of digitally connected repair shops. n nAI and digitally powered claims and repair workflows that surface insights, inform decisions and speed best actions to improve the claims and repair experience. n nInstant digital payment processing and automated parts ordering. n nThis interconnected ecosystem relies on cloud-based integrations between automakers, insurers, collision repairers, tow providers and more. When these connections come together, intelligent experiences (IX) become possible for everyone involved. These experiences are designed to reduce friction and deliver faster recovery. They also improve transparency for consumers navigating post-accident services and for employees working to bring a resolution. The goal is to return drivers to the road quickly and restore their health after accident-related injuries, ensuring recovery is handled with speed, care and efficiency. n nAI and automation are reshaping the claims process n nIn the USA, there is a clear shift toward tech-enabled, AI-powered claims and repair management. Today, nearly 30% of auto insurance claims are initiated using digital photo capture. This enables insurers and collision repairers to apply AI across the post-accident response. Such tools allow for more efficient processes, with AI assessing vehicle damage to generate estimates ready for review within seconds. n nAs vehicles continue to grow in complexity, the scale and speed of AI-driven claims and subsequent repair coordination are expected to grow along with them. Whether a driver is navigating city streets or major roadways, the driver’s expectation will be the same – if something goes wrong, the recovery will be smooth and fast. n nA cross-sector challenge: Affordability and access n nAs the industry grows more complex, the focus must shift to tackling key challenges: controlling rising costs, meeting demand for skilled labour, and keeping new technologies accessible and efficient. Success depends not just on adoption but on responsible application. n nDiscover n nHow is the World Economic Forum promoting sustainable and inclusive mobility systems? n nThe World Economic Forum’s Platform for Shaping the Future of Mobility works across four industries: aerospace and drones; automotive and new mobility; aviation travel and tourism; and supply chain and transport. It aims to ensure that the future of mobility is safe, clean, and inclusive. n nThrough the Clean Skies for Tomorrow Coalition, more than 100 companies are working together to power global aviation with 10% sustainable aviation fuel by 2030. n nIn collaboration with UNICEF, the Forum developed a charter with leading shipping, airlines and logistics to support COVAX in delivering more than 1 billion COVID-19 vaccines to vulnerable communities worldwide. n nThe Road Freight Zero Project and P4G-Getting to Zero Coalition have led to outcomes demonstrating the rationale, costs and opportunities for accelerating the transition to zero emission freight. n nThe Medicine from the Sky initiative is using drones to deliver vaccines and medicine to remote areas in India, completing over 300 successful trials. n nThe Forum’s Target True Zero initiative is working to accelerate the deployment and scaling of zero emission aviation, leveraging electric and hydrogen flight technologies. n nIn collaboration with the City of Los Angeles, Federal Aviation Administration, and NASA, the Forum developed the Principles of the Urban Sky to help adopt Urban Air Mobility in cities worldwide. n nThe Forum led the development of the Space Sustainability Rating to incentivize and promote a more safe and sustainable approach to space mission management and debris mitigation in orbit. n nThe Circular Cars Initiative is informing the automotive circularity policy agenda, following the endorsement from European Commission and Zero Emission Vehicle Transition Council countries, and is now invited to support China’s policy roadmap. n nThe Moving India network is working with policymakers to advance electric vehicle manufacturing policies, ignite adoption of zero emission road freight vehicles, and finance the transition. n nThe Urban Mobility Scorecards initiative – led by the Forum’s Global New Mobility Coalition – is bringing together mobility operators and cities to benchmark the transition to sustainable urban mobility systems. n nContact us for more information on how to get involved. n nThe road ahead n nThe insurance and collision repair industry is embracing AI. We continue to see companies investing generously in R&D to streamline the historically fragmented post-accident process, optimize customer engagements and bolster workforce proficiency. Investment is expected to accelerate in the coming years. Financial services firms invested $35 billion in AI in 2023 and that number is projected to grow to $97 billion by 2027, with anticipated investments across insurance, banking and payments. n nAs investments in this space grow and organizations across the industry collaborate and focus on AI governance, we can expect to see a rapid shift from early adoption to enterprise value. By strengthening governance and upholding standards like bias mitigation and privacy protection, the industry can accelerate innovation while building the trust and confidence needed to deploy new technologies at scale. n nThere is no doubt that the modern road trip has evolved into a new digital experience. As drivers move toward more connected cars, post-accident processes will increasingly mirror the same innovation and technology built into the vehicles. This will ensure drivers benefit from advanced tools both in daily travel and when unexpected incidents occur. n nLoading… n nDon’t miss any update on this topic n nCreate a free account and access your personalized content collection with our latest publications and analyses. n nSign up for free n nLicense and Republishing n nWorld Economic Forum articles may be republished in accordance with the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International Public License, and in accordance with our Terms of Use. n nThe views expressed in this article are those of the author alone and not the World Economic Forum. n nStay up to date: n nArtificial Intelligence n nMore on Emerging Technologies n nSee all n nWhy we need to make safety the product to build better bots n nDavid Sullivan n nAugust 26, 2025 n nHow blended care, combining therapy and technology, can improve mental health support n nWhy targeting specific industry needs can make Europe an AI powerhouse n n3 investment principles for building long-term resilience n nHow Pakistan’s energy revolution can power affordable, reliable electricity for all n nUS policy pivot on chip sales in China. 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