Volkswagen to equip vehicles with ‘Agentic AI’ in latest technology push

Volkswagen to equip Chinese cars with Artificial Intelligence AI systems in bid to catch up in the wake of latest technology push.

The German most popular automobile group recently announced plans to equip new cars built for China with AI "agents" from the second half of this year, it said on Tuesday, as the automaker ‌looks to catch up with the advanced technology on offer in the world's largest car market.

The German giant is scrambling to compete with Chinese carmakers that are setting a faster pace on electrification, digital features, pricing, and speed of development.

At an event in Beijing ahead of the start of the annual car show later this week, Volkswagen said that from the second half of this year it would feature "onboard AI agents" in vehicles that use its China-only electronic architecture.

The technology would allow "highly intuitive, human-like interaction" between the vehicle and the driver while ensuring "robust personal data protection".

Unlike a voice assistant that answers simple questions, AI agents can handle more complex tasks and decision-making, the company said.

Volkswagen's top executive in China, Ralf Brandstaetter, told Reuters after the event that with such technology, the car can search for the highest-rated restaurant in a certain area, and then make and confirm reservations itself.

It can ‌then bring the driver to the restaurant and organise parking, he said.

The german automobile group is trying to reposition itself in the country as a company with a China-specific electric and intelligent vehicle strategy rather than a legacy manufacturer with a strong internal combustion footprint.

In what it calls its "largest ever electric mobility offensive" in China, the group plans to launch more than 20 new electrified vehicles, bringing a total of 50 new models to market by 2030.

Volkswagen Group CEO Oliver Blume told the event that the model launches and tech plans sent a clear message: "We are back".

Additionally, the automaker's "In China, for China" strategy is focused on expanding local research and development capabilities, accelerating development timelines and deepening local partnerships.

Standing alongside Blume, Yu Kai, CEO of Chinese automotive chipmaker Horizon Robotics, said Volkswagen's agentic AI built with Horizon would allow the technology to expand beyond the premium segment to the mass market.