Detroit is looking more and more like Silicon Valley these days as the auto industry shifts into new technologies such as autonomous driving, a change that has prompted General Motors (GM) to announce its first-ever artificial intelligence chief.
In a sign of the growing importance being placed on the technology, Barak Turovsky will lead GM’s AI efforts as it seeks to compete with the likes of Tesla (TSLA) and overtake Ford (F). Previously he worked as vice president of AI at Cisco (CSCO) and held leadership roles at Google (GOOGL) as head of product for languages artificial intelligence.
AI Seen Key to Auto Companies
AI is increasingly important to automakers as they develop autonomous driving software that is seen as more than just a nice-to-have. GM has led the field but competition has been getting fiercer.
Last year Ford CEO Jim Farley said the company was close to achieving Level 3 autonomy, which means drivers can take their hands off the wheel and eyes off the road. Ford’s BlueCruise won Consumer Reports’ top spot for driver assistance systems in 2023, usurping GM’s Super Cruise, which had previously rated the best.
Ford’s BlueCruise, and General Motor’s Super Cruise were the two top-rated by Consumer Reports last month.
Tesla’s “Full-Self Driving” feature is a long way off doing what it claims – it came eighth in the Consumer Reports survey behind Ford, GM, Mercedes-Benz (MGBAF), BMW (DE:BMW), Nissan (NSANY), Toyota (TM) and Volkswagen (VWAGY).
Turovsky’s team will work on autonomous driving in addition to other part’s of GM’s business. He will report to Dave Richards, GM’s software and services engineering department head.
In an emailed statement to Reuters, Richards said that “AI is central to GM’s EV, ICE, and autonomous future,” and Turovsky’s expertise “will accelerate the team’s AI efforts, including enhancing products, optimizing operations, and improving the customer experience.”
Is GM a Good Stock to Buy?
Overall, Wall Street has a Moderate Buy consensus rating on GM stock, based on nine Buys, five Holds and two Sells. The average GM price target of $59.69 implies about 33% upside.