General Motors said it is expanding its software services revenue, adding AI talent and honing its development practices to bring down warranty costs.
The auto giant reported second quarter earnings of $1.89 billion, or $1.91 a share, on revenue of $47.12 billion, down nearly 2% from a year ago.
Here are some of the enterprise technology and AI takeaways from GM CEO Mary Barra and CFO Paul Jacobson.
Customer experiences via OnStar, Super Cruise and software services. Barra said GM has begun pricing vehicles to include a period of basic OnStar services. The move has increased subscriptions giving GM "even more ways to engage directly with our customers through the life of the vehicle," said Barra.
So far, GM has booked $4 billion in deferred revenue from software services. Super Cruise revenue is projected to top more than $200 million in 2025.
Investing in AI talent. GM's Barra said the addition of Sterling Anderson as chief product officer highlights the company's AI talent investment. Anderson was chief product officer from Aurora, an autonomous trucking company.
"We are also embracing AI across the enterprise, which is why we recruited Google and Cisco veteran, Barak Turovsky to lead our efforts under Apple veteran, Dave Richardson, who leads software and services engineering," said Barra.
The company is looking to AI to improve vehicle performance, customer experience and operations. GM has also partnered with Nvidia to build digital twins, robotics platforms and virtual testing tools.
Using over-the-air updates to bring down warranty claims. Jabobson said GM's higher warranty claims over software issues in electronic vehicles resulted in higher warranty claims. The company is also shifting some supply of components to improve quality.
"Our expanded use of over-the-air updates, lower number of incidents per vehicle and increased robustness in our infotainment system updates are all contributing to this improvement," said Jacobson. "Additionally, we are leveraging our enhanced diagnostics in developing new prognostic tools to identify issues sooner, develop repair procedures faster and minimize unnecessary repairs."
