Rudy Lai
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rudyl.aiAI market researchALPHA

AI @ Hyundai

Rapid U.S. growth, EV investment
Industry
Last updated
July 3, 2025 at 10:44 AM

Summary

  • Hyundai Motor Group has steadily embraced AI from 2020 onwards, initially improving automatic transmission performance, and evolving into large-scale investments, research institutes (Boston Dynamics AI Institute 2022), and extensive AI integration in manufacturing, R&D, marketing, and autonomous mobility by 2025.
  • Strategic partnerships with Nvidia from early 2025 have accelerated AI technology adoption in semiconductor technology, AI-driven manufacturing with smart plants, AI-based in-car infotainment systems including proprietary LLMs, and autonomous driving platforms, signaling a strong focus on both internal innovation and external mobility ecosystem transformation.
  • Recent developments in 2025 show Hyundai's push toward AI-powered autonomous driving (Level 2+), smart city initiatives, AI-based automated quality inspection (sound-based system by Hyundai Mobis), and public-private mobility initiatives (NUMA) to reshape transportation in South Korea, demonstrating a mature and expansive AI adoption trajectory.

VIBE METER

More AI announcements = more VIBE
Q1 23Q2 23Q3 23Q4 23Q1 24Q2 24Q3 24Q4 24Q1 25Q2 25Q4 25πŸ”₯πŸ”₯πŸ”₯πŸ”₯

8 AI Use Cases at Hyundai

Mobility Ecosystem
2025
Customer Facing
Traditional
Generative
Agentic
Outcome
Forming public-private alliances such as the Next Urban Mobility Alliance (NUMA) to develop AI-powered transportation and smart city infrastructure transforming urban mobility. [1][2]
Autonomous Driving
2025
Customer Facing
Traditional
Generative
Agentic
Outcome
Utilizing AI deep learning with sensor data (cameras, radar) to advance Level 2 autonomous driving capabilities and enable complex driving decisions for improved safety and convenience. [1][2]
Smart Factory
2025
Traditional
Generative
Agentic
Outcome
Costs
AI-powered smart manufacturing plants with robotics and minimal human intervention to enhance production efficiency, quality control, and scalability. [1][2]
Quality Inspection
2024
Traditional
Generative
Agentic
Outcome
Risk
Hyundai Mobis employed sound-based AI to detect product quality issues on manufacturing lines by analyzing acoustic signatures during inspection, improving defect detection accuracy and speed. [1][2]
In-Car Infotainment
2024
Customer Facing
Traditional
Generative
Agentic
Outcome
Developing proprietary Large Language Models and AI-driven infotainment systems to enhance user interaction, navigation, and personalized in-car experience. [1]
Parameter Optimization
2023
Traditional
Generative
Agentic
Outcome
Costs
AI reduced the engineering optimization process for vehicle system parameters (e.g., Genesis GV80) from one week to 15 minutes, accelerating development cycles and cost savings. [1]
AI Semiconductor Investment
2023
Traditional
Generative
Agentic
Outcome
Revenue
Strategic investment in AI semiconductor start-up Tenstorrent enables Hyundai to integrate advanced AI chips into future vehicle models, enhancing onboard AI capabilities. [1]
Transmission Optimization
2020
Traditional
Generative
Agentic
Outcome
Hyundai applied AI algorithms to optimize automatic transmission performance, improving vehicle efficiency and driving smoothness by analyzing complex transmission data. [1]

Timeline

2025 Q4: no updates

2025 Q3

1 updates

Hyundai launched the Next Urban Mobility Alliance (NUMA), a public-private initiative to innovate South Korea's transportation ecosystem utilizing AI and autonomous technologies.

2025 Q2

1 updates

Hyundai opened the $7.6 billion Metaplant America, an AI-powered smart factory, and announced advancement of AI-powered autonomous driving technology and AI-based automated EV charging robots in partnership with Incheon Airport.

2025 Q1

1 updates

Hyundai Motor Group entered multiple strategic partnerships with NVIDIA to leverage AI semiconductor technology, digital twins, and AI platforms to accelerate development of autonomous driving, robotics, and advanced mobility solutions. It also established AI R&D arms including CoMo China.

2024 Q4

1 updates

Hyundai and Kia presented future mobility vision integrating AI automation, robotics, and smart technologies to innovate software-driven transportation.

2024 Q3

1 updates

Hyundai revealed its AI-driven smart city vision at the World Smart City Expo and deployed sound-based AI quality inspection technology in production, showcasing AI's expanding role in urban and manufacturing innovation.

2024 Q2

1 updates

Hyundai Mobis developed a sound-based AI system for quality assessment on production lines improving product inspection accuracy.

2024 Q1

1 updates

Hyundai announced plans to build its own in-car AI system with a purpose-built Large Language Model for infotainment and user interaction.

2023 Q4

1 updates

Hyundai launched AI-driven marketing (text-to-image AI for SANTA FE campaign), reduced Genesis GV80 parameter optimization time from one week to 15 minutes using AI, and adopted AI/robotics for minimally manned plants.

2023 Q3

1 updates

Hyundai and Kia invested $50 million in Canadian AI semiconductor company Tenstorrent to integrate AI capabilities into future vehicle models.

2023 Q2: no updates

2023 Q1: no updates

2022 Q4: no updates

2022 Q3

1 updates

Hyundai Motor Group partnered with Boston Dynamics to launch an AI research institute with a $400 million investment, focusing on fundamental AI advancements in robotics.

2022 Q2: no updates

2022 Q1: no updates

2021 Q4: no updates

2021 Q3: no updates

2021 Q2: no updates

2021 Q1: no updates

2020 Q4: no updates

2020 Q3: no updates

2020 Q2: no updates

2020 Q1

1 updates

Hyundai and Kia leveraged AI to improve automatic transmission performance, marking early adoption in vehicle system optimization.