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The impact of autonomous vehicles – part 3

Neeraj Mathur

In the previous section, we explored the impact of L3 AVs on the key players within the ecosystem – OEMs, component parts suppliers, and dealers. Now, we will explore the impact on the extended ecosystem, including insurance service providers, local governing bodies, departments of transportation (DoTs), and auto servicing and repairs.

IndustryImpactOpportunities for IT service providers
DoT/local government bodies/NHTSADoT must ensure effective governance through policies and traffic rules for AVs. DoT will: Define a legislative framework to identify use cases and routes on which “eyes-off” vehicles are allowed (ensuring a skilled driver inside the vehicle) Define the regulatory compliance and laws with which vehicle manufacturers need to comply. Compliance might include standardizing the “eyes-off” automation across the all the OEMs, service providers, and automation service providers Assigning responsibility in the case of accidents and non-compliance detected Define a liability framework to define product liability claims and some of them will be “manufacturing defects,” due to which the car fails to perform, and “design defects,” where foreseeable risks/harms/accidents could have been avoided by adopting appropriate alternate designs.Development and support of a cloud base system to provide real-time connectivity to AVs Registration of vehicle details at the time of sale at dealers Sharing real-time information about use cases and routes where AV is eligible for autonomous driving Capturing desired data from AVs in real time for effective governance Analytics systems to refine policies, guidelines, and governance model.
Insurance service providerInsurance service providers may introduce differential insurance premiums based on the level of AV May require tapping into the OEM’s AV platform for accessing incident data.Develop and support a cloud-based system to track insured AVs Provide a view of the vehicle data (historic and incident) for insurance providers to support claims processing Opportunity to build learning models from vehicle data and incident data Support services in terms of high-end analytics
Auto servicing and repairsTrips to service and repair shop will reduce due to fewer accidents, lesser damages and the fact that servicing related to software components will be done over the air / wire. More focused on preventive repairs as software systems will send preventive alertsIT service provider may collaborate with OEM to provide software updates and software support
Industry-driving bodyIndustry-driving body in each geography and across the globe will have to lobby not only with DoT, but also ministries of telecom, justice and law to bring about apt changes to support mainstreaming of AVs The changes will take into consideration standard features required at each level of AV, communication protocols, operating modes, etc.May collaborate with industry body to identify and develop communication protocols considering the number of vehicles that will have to be connected May collaborate with OEMs to develop products and ensure compliance with protocols.

Read the subsequent sections, where we explore the impact of L4 (mind-off) and L5 (driverless) AVs.

This article is co-authored by Satishchandra Nayak, he is a Business Process expert who works on delivering practical Innovation to Automotive and Manufacturing customers of Capgemini.  You can contact him at

Neeraj Mathur is Automotive and Manufacturing domain expert and works on delivering business solutions to Automotive & Manufacturing customers of Capgemini through innovations and business process assessments. You can reach him at

Read the previous issues

Part 1
Part 2