June 13th, 2023 | 07:30 CEST
AI reaches the old economy - Here is where it is happening now: Airbus, Star Navigation Group, BMW
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"[...] In Canada, there is $1.75 of debt for every dollar of disposable income - and that was true even before the pandemic. [...]" Karim Nanji, CEO, Marble Financial
BMW wants to move into the fast lane thanks to ChatGPT and Co.
For those who have knowledge of AI today, doors are wide open, including at BMW. Handelsblatt today refers to a job advertisement of the Bavarian carmaker in which BMW addresses AI experts to become part of "the iPhone moment in Artificial Intelligence". Investing in an AI manager seems to be a wise choice for industrial companies. According to estimates by the Boston Consulting Group, generative AI could accelerate software development for automakers by 55%. Software is becoming increasingly important for cars: passengers desire connectivity, and the dream of an autonomous future is still alive for many automakers. So far, car manufacturers like BMW are still heavily dependent on tech groups or supplier companies. Agile software development, where teams prioritize progress over perfection, still seems uncommon among car manufacturers. Generative AI is now expected to help close this gap.
Airbus: What are the ethical limits of AI?
Nevertheless, teething problems remain around AI. Anyone who has experimented with ChatGPT knows that AI sometimes confidently delivers utter nonsense. Industrial companies, too, must first reorganize their processes and find out where the new technology is beneficial and where classic methods still have the upper hand. However, the fact that AI has now found its way into all areas of industry is also shown by the example of the aviation company Airbus. As early as 2019, the aircraft manufacturer used AI to develop a partition wall for aircraft that is lighter but just as stable. A discussion about the role of AI has also flared up around weapon systems in recent weeks. Even tech visionary Elon Musk spoke out in favour of a development pause around AI in order to gain time and not implement AI too hastily in areas that might have dire consequences for humanity in the long term.
Star Navigation Group: AI makes flying cheaper and safer
In contrast, the AI approach of Star Navigation is completely unquestionable from an ethical point of view and has great benefits. The Canadian company ensures that airlines can obtain real-time data about their aircraft. What sounds normal to tech-savvy people is by no means the norm in aviation - flight recorders are usually read out after the fact. However, Star Navigation's solution ensures that fuel consumption, for example, and all other aircraft data are transmitted in real-time. Fleet managers can react directly to indications of problems. This makes it possible, for example, to organize maintenance while an aircraft is still in the air or to plan the connecting flight with a replacement aircraft. In this way, airlines should save time, increase safety and reduce costs. Smaller maintenance jobs carried out in good time are often considerably cheaper than major repairs.
Medium-sized airlines suffer greatly from competitive pressure and high costs. In recent years, the airlines Malev, Spanair and Swissair have already had to give up. But even the very big ones in the industry, such as Air France-KLM, British Airways and Lufthansa, are under pressure from low-cost airlines. Star Navigation's solutions seem suitable for improving processes and optimizing aircraft utilization through shorter idle and maintenance times. Currently, Star Navigation's solution is already in use on several aircraft. Business relationships or other commercial contacts already exist with various fleet operators in Africa and South America.
As soon as Star Navigation succeeds in equipping larger fleets with its solutions, the Company's business could gain sustainable momentum. As existing customer relationships show, there is demand for Star Navigation's smart solutions. While AI is only gradually being implemented in many industrial companies, innovative companies like Star Navigation already offer customized solutions tailored to potential customers' processes and provide direct benefits. The Star Navigation Group share is a penny stock in an attractive niche. It is worth keeping an eye on the value.
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