How AI Is Transforming the Future of Mobility
- Jenny Kay Pollock
- Jun 12
- 4 min read
By Moha Shah Venture Capital Leader | Future of Mobility, Climate, & Insurtech/Fintech | Strategy, Innovation & Digital Transformation
We’re living in a new era of mobility that’s increasingly being powered by artificial intelligence (AI). Consumers can request a ride in an autonomous vehicle, goods can be transported on highways in autonomous trucks, and groceries can be delivered with drones.
During my tenure at a global Fortune 100, I worked on strategic innovation initiatives focused on the future of mobility, climate, and digital transformation. I’ve also heard hundreds of startup founders pitch their visions for the future at a Silicon Valley-based corporate venture capital firm and startup accelerators over the years. Through these experiences, I am excited by the future of mobility that is being transformed by emerging technologies such as AI.
Trends Transforming the Mobility Ecosystem
In 2011, Marc Andreesen wrote a blog post entitled, “Why Software Is Eating the World.” Innovators, venture capitalists, and technologists frequently reference Andreesen’s mantra – “software is eating the world” – as digital transformation unfolds across different industries from mobility to financial services.
Software is driving innovations in mobility from rides in autonomous vehicles (AVs) like
Waymo to enabling fleet vehicles to make autonomous payments without a credit card powered by Car IQ, a San Francisco-based fintech.
Several trends driving transformation across the mobility ecosystem include more cars with software installed in them, climate change, and consumers’ evolving preferences for more sustainable transportation. While this list is not exhaustive, I believe these trends are reshaping how stakeholders across the mobility ecosystem including auto OEMs, suppliers, mobility startups, governments, and others are charting their strategies for new products and services focused on sustainability and consumer preferences.
The Paris Agreement signed in December 2015 catalyzed many governments around the globe to reduce their greenhouse gas emissions. Most auto OEMs have established net-zero goals. Toyota aims to be carbon neutral by 2050, GM by 2040, and Stellantis by 2038.
Beyond the mobility industry’s net-zero goals, there’s increased consumer desire for more sustainable modes of transportation. J.D. Power’s 2025 Electric Vehicle Consideration Survey revealed that 25% of vehicle shoppers in the U.S. are very likely to purchase an electric vehicle (EV). China currently is the largest market for EV sales globally. According to Cox Automotive, 11 million EVs were sold in China in 2024 and 10% of vehicles currently on the road are electric in the country.
As the electrification initiatives of auto OEMs and their ecosystem partners evolve, software powered by AI is also revolutionizing the future of mobility.
AI: Powering a New Era of Mobility
We’re living in a new era of mobility. Since the Ford Model T’s launch in 1908, global auto OEMs have produced billions of vehicles with internal combustion engines. Increasingly, most auto OEMs are retooling their assembly plants to produce more EVs. They’re also installing more software in cars, increasingly powered by AI.
Autonomous vehicles (AVs) leverage AI with use cases currently centered on ride-hailing, long-haul trucking, and delivery.
To offer a simple explanation, AVs are usually equipped with sensors (such as cameras, LiDAR, and radar) and use AI algorithms to navigate and drive autonomously. Many AV companies aim to have their vehicles operate without a human driver taking over driving duties. The Society of Automotive Engineers International’s infographic offers definitions of the five levels of driving automation.
Additionally, most AV operators are using EVs in testing and commercial operations. For example, Waymo equips Jaguar’s I-PACE, an all-electric vehicle, with its autonomous driving tech stack known as the Waymo Driver. It also has partnerships with other OEMs including Hyundai, Toyota, and Zeekr.
As AI transforms the auto industry, OEMs are retooling their operations, making strategic leadership hires, and forming strategic partnerships. Notable announcements include:
In May 2025, GM appointed Sterling Anderson as its chief product officer. Sterling co-founded Aurora, a leading autonomous vehicle company in the long-haul trucking segment.
Rivian, U.S.-based EV OEM, announced a $5.8B joint venture with Volkswagen focused on creating software and electronics architectures and scaling the EV platforms and architectures per its press release issued on November 12, 2024.
Toyota launched its Toyota Software Academy and Global AI Accelerator last month. The Toyota Software Academy will offer upskilling and educational courses for its AI and software professionals per Toyota’s press release issued on May 22, 2025. The Global AI Accelerator aims to increase Toyota’s AI utilization across 11 areas including AD/ADAS, business software development, customer relations, knowledge retention and transfer, in-vehicle agents, material discovery, manufacturing, novel mobility, office productivity, robotics, and vehicle engineering.
Mobility Startups Powering Innovation Forward
In addition to OEMs' latest initiatives and announcements, many mobility startups are driving innovation forward. Many are leveraging AI-first innovations to transform innovation across land, air, and sea. Wayve, Helm.ai, Oxa, and others are several startups leveraging AI to create new products and services for the AV market. As the drone sector evolves, Detroit-based Airspace Link is innovating to build a safe and reliable drone operations management system for commercial fleets, government entities, and certified drone pilots. In the maritime sector, Bluewater Autonomy, Sea Machine Robotics, and Saildrone are among the startups reimagining transport at sea.
Closing Thoughts on AI and Mobility
Auto OEMs to emerging mobility startups are propelling innovation forward. These innovations will usher in an era of more sustainable transportation that will change how people travel, goods are delivered, and cities and communities are designed.
The future of mobility will be transformed by AI and other emerging technologies in the years ahead. Want more from this amazing author, Moha Shah? Check out her last guest post on the WxAI blog, "Gen AI: Unlocking a New Wave of Innovation, Investments, and Upskilling."
Comments