Artificial intelligence plays a transformative role in the development of smart electric vehicles, said Zhang Yongwei, vice-president and secretary-general of the China EV100 think tank.

He was speaking at Global Intelligent Vehicle Summit held in Hefei, Anhui province.

Zhang noted that the automotive landscape is undergoing a seismic shift.

The industry, once dominated by internal combustion engine vehicles from Europe, the United States, and Japan, is now being reshaped by China's electric vehicle market.

Companies like BYD, which sold nearly 3 million NEVs last year, exemplify this change.

As the world moves toward electrification, AI is accelerating this evolution even further.

Zhang identified several key challenges, including the need for local chip production and the integration of AI into vehicle systems.

He emphasized the importance of treating data as a core asset that drives innovation and competitive advantage.

Collaboration across industries was highlighted as essential to leverage technological advancements and share resources effectively.

As AI-driven vehicles become increasingly common, establishing new standards for safety and data management will be critical.

Zhang urged the automotive sector to adapt swiftly, ensuring that it meets domestic demands while effectively navigating international challenges.

As some Western countries implement restrictions on Chinese software and hardware, the industry must adapt its strategies to build trust and demonstrate compliance with international standards.

Zhang stressed that overcoming these hurdles will require concerted efforts in innovation, transparency, and collaboration on a global scale.