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TechCrunch Mobility: The AI skills arms race is coming for automotive

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Why This Matters

The automotive industry's increasing reliance on AI is reshaping job roles, leading to significant layoffs in traditional IT departments as companies pivot towards AI-native skills. This shift highlights the transformative impact of AI on employment and technological innovation within the transportation sector, emphasizing the need for workers and companies to adapt to new skill requirements. For consumers, this evolution promises more advanced, AI-driven transportation solutions, though it also underscores the ongoing disruption in traditional automotive jobs.

Key Takeaways

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There is a bit of a theme emerging in transportation — and really every industry: AI is creating jobs for some at the loss of others.

General Motors, for instance, laid off more than 10% of its IT department, or about 600 salaried employees — in a deliberate skills swap. This won’t translate into a one-to-one exchange, which means there will likely be a net-negative job loss. But GM insists it is hiring and those layoffs have made room for it to recruit IT people with AI-focused backgrounds.

The most sought-after capabilities are AI-native development, data engineering and analytics, cloud-based engineering, agent and model development, prompt engineering, and new AI workflows. In practical terms, GM is looking for people who know how to build with AI from the ground up — designing the systems, training the models, and engineering the pipelines — not just use AI as a productivity tool.

Those AI job losses are mounting in the automotive sector. CNBC calculated that Ford, GM, and Stellantis have cut a combined total of more than 20,000 U.S. salaried jobs, or 19% of their combined workforces, from recent employment peaks this decade. While there are a variety of reasons for these cuts, they are generally connected to technological changes, including AI.

Companies are leaning heavily into AI, although anecdotes from some engineers and founders suggests not all of these businesses know quite what they’re doing with it yet.

Samsara is one company that seems to have figured out a revenue-generating use case. The company has spent the last decade giving its customers cameras to mount inside millions of trucks for driver monitoring, theft prevention, and helping with liability claims. The company took that mountain of data and trained its own model that can detect potholes and determine how quickly they are deteriorating. The company is pitching this product to cities and announced it has several under contract, including Chicago.

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Image Credits:Bryce Durbin

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