Alibaba and BMW have joined forces to develop advanced AI technologies aimed at shaping the future of mobility in China.

The collaboration brings together Alibaba's growing AI expertise and BMW's automotive innovation to produce smarter, more intuitive vehicles tailored to the Chinese market.

The partnership centres on integrating a customised AI engine into BMW's Intelligent Personal Assistant, using Yan AI-developed by Alibaba's Banma-as its foundation.

However, this AI-powered assistant is set to debut in BMW's upcoming Neue Klasse models, manufactured in China from 2026. These vehicles will feature voice-activated controls and real-time assistance, creating a more seamless and personalised driving experience.

BMW plans to introduce two AI agents, Car Genius and Travel Companion, to enhance in-car services such as navigation, traffic updates, and personal scheduling.

The customisable nature of these tools reflects a growing demand for smart, user-friendly features in the automotive space, particularly in tech-savvy markets like China.

As global competition in the electric vehicle sector intensifies, BMW's strategic pivot towards AI and the Chinese market could strengthen its position against local rivals such as BYD and Geely.

With European subsidies declining, the German carmaker is looking to AI-powered innovation as a key lever to maintain relevance and secure long-term growth.

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