Enhanced In-Vehicle Experiences: Cerence to Utilize Microsoft’s AI and ChatGPT

By Bill McNarland On Jan 4, 2024

TDR Three Key Takeaways

Cerence Microsoft Partnership: Cerence Inc. is collaborating with Microsoft to integrate Azure AI and ChatGPT technologies into its in-car assistant platform, aiming to transform vehicle user interfaces with advanced AI.
Cerence’s Growth and Impact: Since its 2019 inception from Nuance Communications, Cerence has equipped over 400 million vehicles with its AI assistant technology and has been recognized for its innovation with the Automotive News PACE Award.
Technological Synergy and Future: The alliance focuses on leveraging Cerence’s automotive expertise with Microsoft’s AI to create dynamic and continuously updated in-car experiences, signifying a leap in AI-enhanced connected mobility.

Cerence Inc (NASDAQ: CRNC), an AI automotive technology company, is collaborating with Microsoft to enhance in-car experiences by integrating Microsoft Azure AI Services, including OpenAI’s ChatGPT. This partnership aims to revolutionize voice and touch user interfaces in vehicles by combining Cerence’s automotive expertise with Microsoft’s advanced AI capabilities. The initial focus is on incorporating the ChatGPT model through Azure into Cerence’s in-car assistant platform, Cerence Assistant, to enhance post-purchase value and user experience.

Cerence was founded in October of 2019, following Nuance Communications’ decision to spin off its automotive division into an independent company. Nuance had been providing voice recognition technology to car manufacturers for two decades, and its technology was installed in half of the new cars shipped globally in the first six months of 2019. Cerence’s first official trading day on the Nasdaq exchange was October 2, 2019. The company assumed control of previously Nuance-held contracts with approximately 60 automakers, including BMW, Ford, and Toyota. Since becoming independent, Cerence has signed new deals to install its voice recognition and assistance technology in vehicles from Fiat Chrysler and Mercedes-Benz. In January 2020, LG announced its plan to integrate Cerence’s voice assistant into its in-car infotainment systems.

As of August 2021, Cerence’s AI assistant technology had been installed in over 400 million cars worldwide. The company received an Automotive News PACE Award in September 2021 for Cerence Pay, a technology enabling drivers to pay for fuel via voice commands. Cerence develops automotive AI products, primarily focusing on voice assistant technology. Its products are not device-specific and are white-labeled for auto manufacturers. These technologies integrate into a car’s operating system and allow drivers to use speech for various actions, like controlling GPS, entertainment systems, and climate settings. Cerence’s technology also includes facial recognition and customized responses to individual drivers. As of 2021, Cerence’s speech recognition software recognizes 70 different languages and dialects. The technology can work with other voice assistant and AI devices, such as those developed by Apple Inc. and Google, effectively acting as a “switchboard” for accessing information from various AI and voice assistants.

CEO Stefan Ortmanns of Cerence emphasizes the synergy in combining their transportation knowledge with Microsoft’s AI for delivering robust automotive solutions. Microsoft’s Corporate Vice President, Dominik Wee, highlights the transformative potential of generative AI in car interactions. The partnership aims to merge Cerence’s technologies with Microsoft’s cloud services for unique in-car experiences, continuously updated with Microsoft content like Azure Maps. This marks a significant advancement in connected mobility and AI-powered vehicle interactions.