1
00:00:00,120 --> 00:00:03,040
Speaker 1: Yeah, let's get right to our first interview Mercedes CTO

2
00:00:03,560 --> 00:00:07,760
Speaker 1: Marcus Schaeffer, and as we discuss Mercedes starting their announcements

3
00:00:08,080 --> 00:00:11,080
Speaker 1: focused on AI and Marcus, I don't know what to

4
00:00:11,080 --> 00:00:14,240
Speaker 1: make of this. You're calling it a virtual assistant. It

5
00:00:14,320 --> 00:00:19,040
Speaker 1: is part generative AI tool, it's part cockpit. Explain the

6
00:00:19,120 --> 00:00:21,360
Speaker 1: virtual assistant to us and what you've announced this morning.

7
00:00:21,960 --> 00:00:24,439
Speaker 2: Well, I would call AI a real game changer. And

8
00:00:24,480 --> 00:00:26,880
Speaker 2: now at this moment in time from me, they dispense.

9
00:00:27,200 --> 00:00:30,560
Speaker 2: So AI is used in several instances grading a car

10
00:00:30,680 --> 00:00:34,640
Speaker 2: much faster writing code. But AI these days is helping

11
00:00:34,720 --> 00:00:37,320
Speaker 2: us really to put the car in a different light.

12
00:00:38,440 --> 00:00:41,760
Speaker 2: So the car is no longer a vehicle just takes

13
00:00:41,800 --> 00:00:44,120
Speaker 2: you from A to B. It's somebody who can talk

14
00:00:44,159 --> 00:00:46,040
Speaker 2: to And that's exactly.

15
00:00:45,640 --> 00:00:47,199
Speaker 3: A six of that. How does it work? How do

16
00:00:47,280 --> 00:00:47,839
Speaker 3: I interact?

17
00:00:47,880 --> 00:00:51,000
Speaker 2: So it's about the human machine interface actually, and it

18
00:00:51,159 --> 00:00:53,600
Speaker 2: used to be knobs and buttons in the past, and

19
00:00:54,320 --> 00:00:58,760
Speaker 2: was voice signals, phrases that you were using now at

20
00:00:58,880 --> 00:01:02,920
Speaker 2: the present time, are using actually even jet GPT in

21
00:01:02,960 --> 00:01:05,600
Speaker 2: some instances in US cars, but that's more a one

22
00:01:05,600 --> 00:01:09,000
Speaker 2: way dialogue. But now with the virtual system AI and

23
00:01:09,000 --> 00:01:12,959
Speaker 2: the in house software, we're enabling a dialogue. So this

24
00:01:13,800 --> 00:01:17,200
Speaker 2: enables a fully intelligent car and intelligent conversation, so the

25
00:01:17,240 --> 00:01:21,679
Speaker 2: car appears in a completely different context, and that's what

26
00:01:21,840 --> 00:01:25,360
Speaker 2: the user is already experiencing participating in our chet GIPT

27
00:01:25,480 --> 00:01:29,440
Speaker 2: beta program. So the use of voice control in voice

28
00:01:29,480 --> 00:01:34,360
Speaker 2: interaction with a car is just rising traumatically via more

29
00:01:34,400 --> 00:01:37,760
Speaker 2: intelligent conversation with a car. And that's exactually what this

30
00:01:37,880 --> 00:01:41,160
Speaker 2: virtual system that we are creating with the help of

31
00:01:41,200 --> 00:01:45,399
Speaker 2: AI and in house software is enabling. So this changes

32
00:01:45,440 --> 00:01:48,680
Speaker 2: the relation between you, the customer and the car dramatically.

33
00:01:48,880 --> 00:01:52,520
Speaker 1: Marcus, who built the underlying technology Mercedes, or you worked

34
00:01:52,560 --> 00:01:54,680
Speaker 1: with an AI developer like open Ai.

35
00:01:55,440 --> 00:01:58,840
Speaker 2: Well, the key is that's our understanding. We're developing our

36
00:01:58,880 --> 00:02:02,480
Speaker 2: own in how software. We call it Mercedes Spense Operating

37
00:02:02,560 --> 00:02:06,280
Speaker 2: System MBOs. It's called MBOs. So this is the foundation,

38
00:02:06,400 --> 00:02:09,560
Speaker 2: this is a basis. This is a chip to cloud architecture.

39
00:02:09,720 --> 00:02:13,160
Speaker 2: So we're defining the chip level, we're defining the basel middleware,

40
00:02:13,440 --> 00:02:16,680
Speaker 2: we're defining our clouds. So we own the cloud, the

41
00:02:16,760 --> 00:02:20,239
Speaker 2: Mercedespence Intelligent Cloud. So it's a complete three hundred and

42
00:02:20,240 --> 00:02:24,040
Speaker 2: sixty decrease system and within this system, we're having partners,

43
00:02:24,480 --> 00:02:28,680
Speaker 2: So we're using partners for AI modules, data access, and

44
00:02:28,720 --> 00:02:31,280
Speaker 2: so we're partnering here partially when it comes to the

45
00:02:31,360 --> 00:02:35,079
Speaker 2: Virtual Assistant, but partially the software is written in house

46
00:02:35,440 --> 00:02:38,320
Speaker 2: in order to be in control of the result towards

47
00:02:38,320 --> 00:02:40,519
Speaker 2: the customer and the data privacy.

48
00:02:41,120 --> 00:02:43,960
Speaker 1: Just very quickly, if I'm a Mercedes customer, do I

49
00:02:44,120 --> 00:02:46,600
Speaker 1: purchase Virtual Assistant or does it come as part of

50
00:02:46,639 --> 00:02:48,160
Speaker 1: a broader software suite.

51
00:02:48,680 --> 00:02:52,480
Speaker 2: Well, the idea is that we provide a complete entertainment package.

52
00:02:52,800 --> 00:02:55,639
Speaker 2: So it's not only the virtual system model lines or

53
00:02:55,680 --> 00:02:59,680
Speaker 2: across all model lines. So it's ultimately about the customer

54
00:02:59,680 --> 00:03:02,520
Speaker 2: exp us and the Virtual Assystem is just an enabler

55
00:03:02,560 --> 00:03:05,799
Speaker 2: and intelligent enabler that had opened up the world of

56
00:03:06,000 --> 00:03:09,720
Speaker 2: entertainment for a Mercedes Benz customer. So you purchase a

57
00:03:09,720 --> 00:03:13,960
Speaker 2: whole package of entertainment. It's video, it's audio. We just

58
00:03:13,960 --> 00:03:19,200
Speaker 2: announced yesterday partnership with Audible Podcast. So there are many

59
00:03:19,200 --> 00:03:22,600
Speaker 2: many ways that entertainment in the mostly dispense is taken

60
00:03:22,639 --> 00:03:25,119
Speaker 2: to the next level through the Virtual Assistant.

61
00:03:25,760 --> 00:03:29,919
Speaker 1: Marcus, you are entering a key battleground with drive pilots.

62
00:03:30,560 --> 00:03:34,800
Speaker 1: Level three California and Nevada at first, and customers will

63
00:03:34,840 --> 00:03:39,160
Speaker 1: be able to start taking delivery download of this early

64
00:03:39,200 --> 00:03:40,120
Speaker 1: twenty twenty four.

65
00:03:40,800 --> 00:03:42,160
Speaker 3: What has demand been like?

66
00:03:42,240 --> 00:03:45,360
Speaker 1: Can you tell me how many Mercedes customers will be

67
00:03:45,400 --> 00:03:48,440
Speaker 1: able to use drive pilot on roads in those states

68
00:03:48,440 --> 00:03:49,280
Speaker 1: twenty twenty four.

69
00:03:50,080 --> 00:03:53,120
Speaker 2: Well, we started offering a level three drive pilot in

70
00:03:53,160 --> 00:03:55,600
Speaker 2: Germany last year and so we have quite some experience

71
00:03:56,440 --> 00:04:00,000
Speaker 2: in Germany and the interest in purchasing the live pilot

72
00:04:00,120 --> 00:04:03,040
Speaker 2: with the S class and the Equs is really really

73
00:04:03,080 --> 00:04:05,640
Speaker 2: high in Germany. So now we're starting in the market

74
00:04:05,680 --> 00:04:09,560
Speaker 2: here in Nevada and in California. Customers will receive the

75
00:04:09,600 --> 00:04:14,040
Speaker 2: first cars and the interest is absolutely high. But this

76
00:04:14,080 --> 00:04:16,560
Speaker 2: is a game changer. This is an absolute new game.

77
00:04:16,400 --> 00:04:19,040
Speaker 3: Knowledgier for revenue as well as technology. Will you make

78
00:04:19,040 --> 00:04:20,000
Speaker 3: it well? Nundas from it.

79
00:04:20,160 --> 00:04:24,400
Speaker 2: Technologically, it's a game changer because responsibility moving from level

80
00:04:24,400 --> 00:04:27,839
Speaker 2: two cars to level three cars changes from the driver

81
00:04:28,240 --> 00:04:32,400
Speaker 2: to the vehicle and that's a fundamental paradigm shift that

82
00:04:32,520 --> 00:04:36,600
Speaker 2: is happening here supported by technology. So there's lighter technology

83
00:04:36,600 --> 00:04:40,520
Speaker 2: in the car, cameras, radars, a software stack, an intelligence

84
00:04:40,560 --> 00:04:44,120
Speaker 2: software stack, and extensive work with the authorities here in

85
00:04:44,160 --> 00:04:48,520
Speaker 2: the US to get it certified. So where it's a

86
00:04:48,600 --> 00:04:51,880
Speaker 2: huge technology stack and package that we're offering the customers

87
00:04:51,920 --> 00:04:55,960
Speaker 2: here with the benefit that you are unable to perform

88
00:04:56,080 --> 00:04:59,880
Speaker 2: side activities while you're driving, so ice off the roads

89
00:05:00,200 --> 00:05:03,160
Speaker 2: and the hands off the steering wheel for the first time. Right,

90
00:05:03,279 --> 00:05:05,640
Speaker 2: this is the only vehicle in the market so far.

91
00:05:06,200 --> 00:05:07,920
Speaker 3: You raise a good point of certification.

92
00:05:08,040 --> 00:05:11,080
Speaker 1: A big news story of the last week has been

93
00:05:11,120 --> 00:05:14,680
Speaker 1: the recall in name only of all Tesla vehicles on

94
00:05:14,720 --> 00:05:18,000
Speaker 1: autopilot in China, and the regulator said, you need to

95
00:05:18,040 --> 00:05:21,920
Speaker 1: do more to get the driver focused on the road,

96
00:05:22,040 --> 00:05:25,920
Speaker 1: more alerts. Do you think you'll avoid a soft recall

97
00:05:26,080 --> 00:05:28,520
Speaker 1: like that? Are you confident that once drive Pilot is

98
00:05:28,600 --> 00:05:31,760
Speaker 1: rolled out here in the United States and later China,

99
00:05:31,920 --> 00:05:34,880
Speaker 1: that it will just be able to exist in the marketplace.

100
00:05:35,320 --> 00:05:37,320
Speaker 2: I believe you can never rule out that you were

101
00:05:37,360 --> 00:05:40,240
Speaker 2: running into a recall. But on the other hand, we're

102
00:05:40,279 --> 00:05:44,560
Speaker 2: doing everything in the forefield to avoid this and making

103
00:05:44,600 --> 00:05:48,719
Speaker 2: sure this is a reliable system. So the intensive work,

104
00:05:48,800 --> 00:05:51,920
Speaker 2: extensive work with the authorities or a couple of years

105
00:05:51,960 --> 00:05:55,440
Speaker 2: with DMV, NITZA and many authorities in the country to

106
00:05:55,520 --> 00:05:58,640
Speaker 2: explain the system to them and the boundaries of the system.

107
00:05:58,880 --> 00:06:01,560
Speaker 2: What the system can do, the system cannot do is

108
00:06:01,600 --> 00:06:04,520
Speaker 2: so essential and to explain it in detail also to

109
00:06:04,560 --> 00:06:09,000
Speaker 2: the customer. So it's an education process that has happened

110
00:06:09,040 --> 00:06:11,720
Speaker 2: over the last two years three years in the country

111
00:06:11,720 --> 00:06:16,960
Speaker 2: here making sure customers and the legislator understand the boundaries

112
00:06:16,960 --> 00:06:19,440
Speaker 2: of the system here. And I think it's very important

113
00:06:19,560 --> 00:06:22,520
Speaker 2: to distinguish being a level two system, a driver a

114
00:06:22,600 --> 00:06:26,760
Speaker 2: system system and an automated drive pilot.

115
00:06:27,000 --> 00:06:28,680
Speaker 3: The lowest level atonament three.

116
00:06:28,960 --> 00:06:32,520
Speaker 2: And it's so essential for the customers that they understand

117
00:06:32,520 --> 00:06:35,000
Speaker 2: what the system is able to do and what they

118
00:06:35,040 --> 00:06:38,200
Speaker 2: can do, what they cannot do, in order to avoid what.

119
00:06:38,080 --> 00:06:39,720
Speaker 3: We call mode confusion.

120
00:06:40,360 --> 00:06:42,720
Speaker 2: So you should never confuse your customer what the system

121
00:06:42,839 --> 00:06:45,600
Speaker 2: is able to do. That's why we clearly distinguished this

122
00:06:45,760 --> 00:06:49,360
Speaker 2: is a level two car. Driver systems takes a lot

123
00:06:49,360 --> 00:06:51,479
Speaker 2: of load from you, but you always have to have

124
00:06:51,560 --> 00:06:54,000
Speaker 2: your hand in the steering wheel and you are in charge.

125
00:06:54,279 --> 00:06:58,039
Speaker 2: But in level three you give the responsibility to the machine,

126
00:06:58,600 --> 00:07:01,560
Speaker 2: and that's a fundamental change with a benefit. You can

127
00:07:01,680 --> 00:07:05,880
Speaker 2: perform site activities, watching movies and doing other things in the.

128
00:07:05,839 --> 00:07:09,760
Speaker 1: Car legally Marcus Schaeffer, Mercedes Chief Technology Officer CTO.

129
00:07:10,040 --> 00:07:12,400
Speaker 3: Good to catch up here at CS