In Dialog with Steve Basra

Steve, let’s start with a personal question. What attracted you to leading Google Cloud’s automotive efforts?
The automotive industry is going through its biggest shakeup ever. We’re seeing new players, the rise of electric vehicles and software-defined vehicles (SDVs), and a huge push for sustainability. Joining Google Cloud was a chance to be right in the middle of all that. Google Cloud is not just watching this transformation – it’s actively shaping the future of the automotive industry.

Google is serious about becoming the top cloud provider for the auto industry and a key player in the in-vehicle experience. That means strengthening existing partnerships, exploring new opportunities, and building a strong and robust partner ecosystem. This vision – and the chance to help build that future strategy in the automotive industry – is what brought me to Google Cloud.

Some people describe it as the perfect storm: Automotive companies are under pressure to innovate and stay competitive while managing high cost pressure. What specific solutions does Google Cloud offer to help automotive OEMs thrive in this environment?
Our global team has deep experience in driving innovation within the automotive industry. We offer a comprehensive and powerful suite of solutions for the automotive industry and together with our large and robust partner ecosystem, we’re able to develop highly specific, cloud-based solutions tailored to the individual challenges our automotive customers face. These solutions can improve the driver experience, make automotive production more sustainable, or accelerate development processes, leading to significant cost savings. At the same time, we’re also fostering internal transformation and innovation within the automotive OEMs.

With our Google Workspace solutions and AI-tools such as Agentspace we empower employees to work faster and smarter, and better focus on what’s truly essential – which is especially important given the talent shortage in many countries.

For in-vehicle experiences, our Automotive AI Agent lets automakers create customized AI assistants, powered by our AI mapping tools in Automotive SDK. Extending beyond the vehicle, Google Cloud’s AI optimized platforms accelerate the development of advanced driver-assistance systems (ADAS) and autonomous driving. Flow with Veo 3 facilitates personalized marketing through tailored content and promotions, enhancing the customer shopping journey. To optimize operations, automakers can utilize our AI platform Vertex AI for improved demand planning and inventory forecasting, while our Manufacturing Data Engine solution helps improve quality and reduce downtimes.

Are there specific services available for software-defined vehicles (SDVs)?
Software-defined vehicles are all about flexibility, faster development cycles, and continuous improvement through software updates. That’s why we offer Android Automotive as open source and free of charge. It gives OEMs a powerful and customizable platform to build on.

To further accelerate SDV development, we recently launched the Horizon Open Source Initiative with Accenture. This includes a CI/CD platform designed to significantly reduce hardware and development costs – we’re already seeing savings of around 30%. Plus, with the help of Gemini, caching, and Android Build File Systems, we’re speeding up build times by up to 80%. We also offer a comprehensive test suite for both virtual and physical testing, which is crucial for ensuring the reliability and safety of SDV software.

Google Cloud manages a variety of data intensive services, what’s in for the OEMs or system suppliers?
We offer database and data analytics services like BigQuery and BigTable which can manage telemetry and data services at a global scale with incredible reliability.

We’re already the market leader for German financial institutions like Deutsche Börse, Deutsche Bank, and Commerzbank, and also working with leading retailers like Metro, MediaMarktSaturn, and Migros. Automotive banks could significantly benefit from AI applications – like those used at Commerzbank, for example. Commerzbank reduced administration time by 66% with AI assisted summaries of investment calls with its corporate clients.

How are you helping automotive manufacturers to improve the in-car experience?
For drivers, the in-car experience is all about convenience, safety, and personalization. They want seamless access to information, entertainment, and assistance while on the road. That’s where our AI suite comes in. It supports the creative side, helping generate high-quality customer experiences.

For example, Mercedes-Benz is among the first automakers to implement Automotive AI Agent in its MBUX Virtual Assistant in its Mercedes-Benz CLA. The enhanced MBUX Virtual Assistant, which offers fresh and factual information from Google Maps Platform, allows drivers and passengers to use voice commands to obtain comprehensive and personalized information about points of interest, traffic conditions and more, within seconds. Google Cloud’s Automotive AI Agent also enables the MBUX Virtual Assistant to handle complex, multi-turn dialogue and can remember conversations, so drivers can stop and start speaking and it will be able to pick up where you left off.

But this is just the beginning. We believe that true brand loyalty comes from providing a superior, personalized experience that combines creative elements with data-driven insights, ultimately making driving safer, more enjoyable, and more convenient for everyone.

If the technology is readily available, what’s holding automotive companies back from fully transforming their operations?
One obstacle we witness in the market is that there is often a focus on finding solutions for »individual pain points« rather than focusing on the bigger picture. This creates isolated systems and a fragmented approach. Modern solutions need to focus on a robust data strategy, API-based, microservices-enabled, and serverless, allowing them to scale seamlessly with minimal overhead. It’s about taking a holistic view and adopting a truly integrated strategy.

Automotive manufactures are burdened with a high cost pressure. How can Google Cloud help solve this challenge?
Absolutely. Let me give you a few specific examples of how we’re helping manufacturers drive down costs: At Hannover Messe, we showcased a digital twin/MES solution developed with Renault and Accenture. This is projected to contribute to a €300 million cost-saving goal through their ambitious transformation. Beyond that, many manufacturers are now using our AI services to optimize every stage of the manufacturing process, from product design and planning to execution and aftermarket services.

We’ve also announced plans to open our Wide Area Network (WAN) for Level 2 services. Additionally, our supercomputer infrastructure has proven incredibly cost-effective for all types of workloads, including AI. Finally, Google Distributed Cloud (GDC) makes it possible to deploy our AI models directly in on-premises environments, enabling access to the latest AI technology, even for companies with strict data residency requirements.

Navigating data sovereignty and regulatory compliance is a major concern for automotive companies, particularly in Europe. How is Google Cloud helping them address these challenges?
Data sovereignty is a top priority for us. Google Cloud was the one of the first hyperscaler to develop and champion a sovereign cloud solution specifically for the German and EU markets. This ensures that our customers can maintain control over their data and comply with local regulations.

We also have strong development centers located throughout Europe, including Munich, Zurich, London, Warsaw, Malaga, and Paris. Our commitment to innovation in Europe is evident in the groundbreaking work being done at Google DeepMind, which has led to two Nobel Laureates this year. This demonstrates the caliber of talent and research we have in the region, and it ultimately benefits our automotive customers by providing them with cutting-edge solutions that meet their specific needs.

Looking ahead, what’s your key message to automotive leaders about the future and how Google can help them shape it?
My message is simple: The future of automotive is about partnership. It’s about combining the deep industry expertise of automotive leaders with the innovative power of companies like Google. We’re committed to providing the technology, infrastructure, and AI solutions that will enable automotive companies to thrive in this rapidly changing landscape. And, to be clear, we have no plans to launch our own cars or trucks – we’re here to empower you to build the future of automotive, together.