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# Software is the New Fuel, AI the New Horsepower - Pioneering New Paths at Mercedes-Benz

Mercedes-Benz is rewriting 130 years of automotive legacy. Software and AI are now their foundational horsepower. Discover how 200 petabytes of data drive this software-defined vehicle revolution.

- **Speakers:** [Katrin Lehmann](https://www.wearedevelopers.com/@katrin-lehmann), [Magnus Östberg](https://www.wearedevelopers.com/@magnus-ostberg)
- **Event:** World Congress 2025
- **Published:** August 20, 2025
- **Duration:** 18:05
- **URL:** https://www.wearedevelopers.com/videos/1388-software-is-the-new-fuel-ai-the-new-horsepower-pioneering-new-paths-at-mercedes-benz

## Summary

Mercedes-Benz is pivoting from traditional automotive engineering to a software-first paradigm with the launch of its new software-defined vehicles and the Mercedes-Benz Operating System (MBOS). By decoupling hardware from software, the company enables seamless over-the-air updates and rapid feature deployment. This evolution relies heavily on "Level 2++" automated driving systems, shifting the cognitive load of navigating complex urban environments from rule-based systems to dynamic neural networks powered by end-to-end data training loops and 200 petabytes of AI training data.

Behind the wheel, a unified IT and R&D strategy—dubbed the "We Team"—drives this transformation. Modernizing an organization with over 130 years of legacy requires breaking down silos and navigating strict regulations to support continuous integration at scale. Developers leverage tools like GitHub Copilot to optimize internal workflows, while AI integrates globally across the complete value chain. Implementations range from generative AI drafting component requirement documents to the MO360 chatbot ecosystem supporting assembly line production and real-time computer vision detecting surface defects in the paint shop.

The transition to an "AI first" company demands more than technical upgrades; it necessitates a cultural shift rooted in clean, scalable data foundations. Leadership actively participates in continuous education, dedicating time to building AI agents and fostering a data-driven mindset across operations. Within the vehicle, the MBUX virtual assistant blends GPT and Gemini models to handle natural, multimodal interactions, ultimately increasing usage rates by eliminating rigid voice command structures. This deep integration proves that software and AI are no longer just supplementary features, but the foundational roadmap for modernized manufacturing and digital customer experiences.

**Keywords:** software-defined vehicles, MBOS architecture, over-the-air software updates, end-to-end AI training loops, level 2++ autonomous driving, multimodal virtual assistants, legacy enterprise modernization, cross-functional IT alignment, GitHub Copilot adoption, generative AI documentation, MO360 production ecosystem, computer vision quality control, data-driven engineering culture, executive AI enablement, hardware and software decoupling

## Chapters

1. **Launching the first software-defined dynamic vehicle experience** (00:07) — Water-cooled computing powers immersive digital experiences and over-the-air upgrades in modern vehicles.
1. **Separating hardware and software with a service-oriented architecture** (02:27) — A cloud-based operating system enables continuous rollout of digital vehicle features independently from automotive hardware lifecycles.
1. **Enhancing in-car virtual assistants with generative AI models** (03:17) — Integrating multimodal neural network models improves natural language understanding and drastically increases voice assistant usage.
1. **Transitioning automated driving to neural networks and model-based perception** (04:58) — Utilizing massive datasets and upgraded compute capabilities allows autonomous systems to handle complex urban traffic without rigid programmatic rules.
1. **Aligning enterprise workflows to support continuous software delivery** (08:35) — Breaking down historical silos between information technology and research teams facilitates rapid software updates alongside strict regulatory compliance.
1. **Integrating artificial intelligence across the automotive production lifecycle** (13:02) — Automated defect detection, technical compliance checks, and intelligent customer routing streamline operations throughout the corporate supply and distribution chain.
1. **Empowering developers through continuous learning and modern programming tools** (16:26) — Equipping engineering teams with automated coding assistants and dedicated training time fosters a proactive culture of data-driven innovation.

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