Smart cars driving investment into AI and deep learning The automotive industry is also driving considerable development of AI and deep learning technologies. These are the complex systems that must make sense of the varied sensor data input in real time to navigate safely, avoid accidents and reduce risk. This is a massive area that is attracting significant VC investment and attention, especially given that the possible applications of these technologies reach far beyond smart vehicles. In 2016, General Motors made headlines with their $1 billion acquisition of San Francisco-based Cruise Automation, while in Q1’17, Ford announced an investment of $1 billion over 5 years in new startup Argo AI. In Q2’17, California-based Drive.ai, which specializes in deep learning software for 4 driverless vehicles, secured $50 million in Series B funding led by NEA . Personal mobility poised for further disruption Another massive technology-driven change is how the consumer thinks about personal transportation. Already, ridesharing apps like Uber Didi Chuxing and Lyft have caused massive disruption to the taxi industry, while the growing car-sharing and on-demand vehicle market has made many urban consumers question whether they need a car at all. Continued investments in these spaces are expected globally, especially in developing markets. Green vehicle technologies, including electric cars and other environmentally friendly options, have also continued to garner attention as governments, companies and consumers alike look to reduce their carbon footprint. China’s green vehicle company Nio (formerly NextEV) is proving to be a disruptive leader in this space, securing $600 million in March from Baidu and launching its first 5 production model at the Shanghai auto show this year . Autotech trends on the horizon Despite the investment activity already seen, autotech is a new sector whose impact has yet to be fully felt. In coming years, look for new technologies and innovations to create massive change and disruption across every aspect of the auto industry, from manufacturing and sales, to insurance, driver experience, and on-road safety. 4 https://techcrunch.com/2017/06/27/drive-ai-raises-50m-for-retrofit-kits-to-bring-self-driving-to-existing-fleets/ 5 http://www.thisisinsider.com/china-driverless-car-market-funding-2017-6 © 2017 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. #Q2VC