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High tech #LikeABosch – how we’re delivering better quality of life with connect ...

04.01.2022

Presentations

Business/economy

High tech #LikeABosch – how we’re delivering better quality of life with connect ...

Dr. Tanja Rückert, chief digital officer of Robert Bosch GmbH, and Mike Mansuetti, president of Bosch in North America, at the Consumer Electronics Show on January 4, 2022 Check against delivery. Good morning everyone, and welcome to the Bosch press conference! We’re delighted to have you with us digitally today. Although we regret that the pandemic has once again prevented us from meeting face to face, of course everyone’s health has top priority. The good news is that we can safely come together in a virtual manner, all thanks to technology. And that fits in perfectly with what we want to talk to you about today. Specifically, we want to talk about the benefits and opportunities offered by technology, and the positive impact it can have. Technology for a better world – today and tomorrow You’ve just seen the premiere of the latest installment of our #LikeABosch” campaign: “high tech #LikeABosch.” “High tech” may be a familiar term here at CES, but we at Bosch have a slightly different take on things. Today, we want to tell you about how our approach to high tech is not just about pushing the envelope on what’s possible. Instead, it’s about using cutting-edge technology as a means to improve people’s lives wherever they are: at home, at work, on the road, in a hospital, or even in orbit! As a company committed to delivering life-enhancing innovations, we center our development around people. But especially at a time of such profound technological change, it’s not enough for companies to assume we have all the answers. To truly give people what they need and want, we have to understand what these are – and what hesitations and concerns are attached to them. And so we did exactly this: we conducted a comprehensive international survey to gauge opinions on a wide range of technology-related topics. We asked a representative sample of people in five countries – China, Germany, India, the U.K., and the U.S. – to tell us how technological progress looks from their point of view, what they want most from technology, and where they see both the most promise and the most risk. The inaugural Bosch Tech Compass is having its global debut right here at CES. Over the course of our press conference we’ll be sharing with you some of our most interesting and relevant findings. To start with, let’s look at what for us is perhaps the most significant finding of all. As the survey showed, confidence in technology and enthusiasm about its impact are high across the globe. A full 72 percent of respondents worldwide believe that technology is making the world a better place. Above all, they believe technology is bringing them increased comfort and safety, and that it’s making work easier. And they’re optimistic about its potential, too: most significantly, 76 percent of people globally are convinced that technology holds the key to combating climate change. At Bosch, we agree wholeheartedly. After all, we’re also firmly convinced that technology has the potential to make all our lives better – that’s why “Invented for life” is not just our claim, it’s our strategic imperative. We only need to look at our portfolio for proof: think of beneficial and even lifesaving innovations such as our vehicle electronic stability program ESP, airbag control units, our digital guardian angel Help Connect, or the rapid coronavirus PCR test we developed for our Vivalytic device last year. When it comes to climate change, we at Bosch take the fight against it very seriously: we were the first global industrial enterprise to achieve carbon neutrality at all our international locations. We’re working now on reducing emissions generated along our supply chains and during the lifecycle of our products by 15 percent by 2030. In terms of volume, this is 67 million metric tons, a figure roughly twenty times greater than what our locations emitted in our baseline year of 2018. We’re also sharing our experiences and supporting other companies’ carbon neutrality efforts via our consulting company Bosch Climate Solutions. We’re driving sustainability with our products as well, enabling those who use them to reduce their carbon footprint. For example, our U.S.-based building technology subsidiary Climatec won a 35 million-dollar contract from the City of Ontario in California to boost its energy efficiency, safety, and connectivity. Within the framework of the “Smart Ontario” project, we’ll be retrofitting the city’s infrastructure with smart, connected solutions such as building automation and LED streetlights that should reduce local greenhouse gas emissions by over 10,000 tons annually. And to pursue our longstanding vision of climate-friendly mobility, we supply a full range of components and systems solutions for electromobility – in fact, no other company offers as wide a range as Bosch: from battery-electric powertrains to regenerative braking systems to fuel cells, powering everything from e-bikes to commercial vehicles. Speaking of e-bikes, they’re at the intersection of two major drivers for our business: electrification and connectivity. It wasn’t too long ago that an e-bike was a niche product. Now it has become one of the most popular forms of personal transport worldwide. But what does connectivity have to do with an e-bike? It’s the basis for a personalized e-bike experience like never before. This is exactly what our new system generation – called the eBike Smart System – offers its users. This innovation, which is a 2022 CES ® Innovation Award Honoree, was first introduced late last year and will be available for a mass audience to see and demo for the first time in the U.S. here at CES. With this entirely new system consisting of our eBike Flow app, control unit, display, battery, and drive unit, we’re merging the physical experience of riding an e-bike with digital conveniences like connectivity, personalization, and services. For example, in the future, your e-bike will be able to adapt to your riding style, suggest routes you enjoy, and guide you safely to your destination while learning your preferences and interests. Thanks to connectivity, the bike is not a static product, but one that can continually evolve after purchase. The experience can be constantly enriched with new digital experiences thanks to over-the-air updates. This is just one example of how connectivity is at the heart of all our products. In fact, we’re delighted to announce that we reached an important goal set several years ago: 100 percent of all our electronic product classes are now web-enabled. This means that for nearly everything we produce, we can now realize functions such as wireless updates and web-based services. Just think of the beneficial services we’ve already realized by putting cars online: our emergency notification service eCall, for instance, or our wrong-way driver warning. Bosch is an IoT and software company This milestone is a key proof point for how Bosch has evolved into a software and IoT company. We currently employ approximately 35,000 software developers. Overall, our annual investments in building up software competence amount to more than four and a half billion dollars. This means that we understand both sides of the coin better than most other companies – particularly when it comes to connecting things to the internet. Just let me give you an idea of what we’ve achieved recently in two of our key domains: home and mobility. When it comes to technology for the home, Bosch sold 4 million web-enabled power tools, home appliances, and heating systems in 2020; in 2021 this number increased to over 6 million – which is 50 percent growth! In the mobility sector as well, software is paramount – cars are becoming internet nodes. This has been a Bosch vision for quite a while, and we’re ideally positioned to play a major role in creating the software-defined car. In our Mobility Solutions business sector, we’re investing nearly three and a half billion dollars annually in building up our software competence in this domain. At the beginning of last year, our new Cross-Domain Computing Solutions division started operations, bringing together hardware and software development for new automotive electronics architectures. This year we’re taking the additional step of pooling our work on application-independent vehicle software for cars and the cloud at our subsidiary ETAS GmbH. This means that we’ll be able to provide solutions to manufacturers and other suppliers more quickly, securely, and efficiently in the future. In addition to optimizing our organization and building up our expertise, we’re engaging in partnerships to propel our technology leadership in the mobility sector forward. For example, together with Microsoft we’re strengthening our position in software development for all domains – from the car to the cloud. It’s also enabling us to speed up feature development to bring new software functions to vehicles faster. In this collaboration we’re making great progress toward developing an open technology platform that will enable the acceleration of automotive development cycles. Last but not least, increasing demand for software comes along with an increasing need for software integration. Here, given our domain knowledge, Bosch is at home and can provide the necessary integration know-how. Take automated driving, for example. An automated vehicle must be able to do everything a human driver can do: perceive its surrounding, make decisions, and accelerate, brake, and steer. Bosch has all the different building blocks for automated driving in our portfolio and, step by step, we’re laying the technical groundwork. With our driver assistance systems, we’re already paving the way for all levels of automation. And this is paying off: to give you an example, over the past five years, Bosch made more than 10 billion dollars in sales with driver assistance systems. From components to systems, and from software to services – when it comes to tomorrow’s mobility, all roads lead to Bosch. To give you a sense of the range of technologies we offer, and how they’ll be seamlessly integrated in future vehicles, we are showing a glimpse in our booth of how software, personalization, automation, connectivity, and electrification will unlock infinite possibilities to shape the way we get from points A to B in the future. Bosch on its way to becoming a leading data-driven AI company Speaking of the future, when asked what they think the most influential technology will be in ten years, Bosch Tech Compass respondents across the globe agreed that it will be AI and 5G. At Bosch, we’ve made AI a major strategic focus. We want to use connectivity and data collected over the IoT combined with artificial intelligence – AIoT for short – to continuously improve our products and services. A milestone on our path to become a leading data-driven AI company was the establishment of the Bosch Center for Artificial Intelligence in 2017. The BCAI currently operates at 7 locations in the U.S., Germany, India, Israel, and China. So far it has worked on more than 200 projects in the mobility, manufacturing, agriculture, and smart-home domains, and has already contributed nearly 350 million dollars to our global result. In systematically building up our expertise in AI, we’re also working toward a concrete goal: by 2025, every Bosch product will either be equipped with AI or manufactured with its help. One new product featuring AI that we’re showcasing here is our latest Home Connect fridge, which can identify its contents and suggest recipes based on what’s inside – which might not only get you out of a dinnertime rut, but can also help you use up what might otherwise go to waste. Another very special example which demonstrates how we continue to develop solutions for maximum benefit is our SoundSee technology. This acoustic technology had its debut aboard the International Space Station, where it uses AI to help monitor the health of critical systems on the ISS, such as the space station’s environmental control and life-support systems. And today we’re announcing for the first time a new use case for audio AI based on the same technology currently aboard the ISS. Together with Highmark Health in Pittsburgh, Pennsylvania, we’re exploring the use of audio AI as a diagnostic tool in pediatric medicine. Specifically, we’re working on adapting these experimental sensors to detect pulmonary conditions such as asthma at an early age, just by listening to children’s breathing patterns. Our hypothesis is that each child has a sort of audio fingerprint, and that the use of audio AI can be used to learn a child’s normal pulmonary sounds. Should something change, then the idea is that the AI will pick this up, which will potentially lead to early therapy and better outcomes. Ideally this technology will enable us to monitor kids in a non-invasive manner and alert the parents at a far earlier stage when there is a variation from the child’s baseline. Ultimately, we see the combination of AI and the IoT as holding the key to leveraging the most user benefit from both of these technologies. Think of it as a continuous improvement loop. Connected products transmit data, which is then processed with the help of AI algorithms. Optimizations are identified, then fed back to the products in the form of software updates, and the cycle starts again. In effect, this allows customers to be an integral part of the development process, and for solutions to be tailored precisely to their needs. The result is better solutions for our customers – as well as new revenue streams for us, since it will enable us to turn the sale of every digital product into services-based revenue as well. Trust and responsibility are decisive for success Like the Bosch Tech Compass respondents, we also believe that the impact of artificial intelligence and next-generation connectivity will be huge. In order to realize the full potential of these new technologies, however, they must gain widespread acceptance. For this, we must not only make the benefits comprehensible for people, we need to build trust in the technology and in the companies that create it. In fact, the same is true of all new digital technologies: trust must be established, not taken for granted. Going back to the results of the survey, this was one of the strongest points of agreement among all the respondents. Four out of five people across the globe believe that a company’s success will ultimately depend on its ability to build digital trust with its customers. To gain trust, of course, companies must act responsibly: in dealing with sensitive data, in balancing economic and ecological considerations, and in leveraging innovation for the common good. Respondents to our survey agree on this as well: a whopping 83 percent of respondents think that technological progress should be more focused on confronting society’s challenges rather than on serving individual needs. Above all, what emerges from the Bosch Tech Compass is that people are more aware than ever of both the potential and the pitfalls offered by technology, and that they want those who create it as well as those who legislate its use – in other words, companies and policymakers – to take responsibility for steering its development in the right direction. At Bosch, we’ve always prioritized trust and responsibility in our pursuit of technological advancement. This was true for the analog world, and it’s even more true for the digital world, where trust is in short supply. Above all, we want to lead by example when it comes to using innovation as a force for good, not just for profit. That’s why we’ve published an AI code of ethics for our own developers, and why we’re explicitly and exclusively committed to AI that is safe, robust, and explainable. It’s also why we are the driving force behind the Digital Trust Forum, a global consortium of representatives from different stakeholder groups whose aim is to foster a high level of trust in AI and IoT-based solutions. In particular, we’re working with our partners to develop trust policy frameworks and eventual certification and conformity labels. The plan is that products that meet certain criteria will bear a Digital Trust seal – along the lines of the energy-efficiency labels you see on home appliances, for instance. Of course, trust and acceptance also depend on people seeing the concrete benefits a new technology can deliver. Here I’d like to highlight a Bosch innovation that again demonstrates the incredible potential of AI. It’s a gas sensor – the first one on the market equipped with artificial intelligence – and it’s being used in a truly revolutionary new product. Dryad’s Silvanet Wildfire Sensor is a pioneering new solution for ultra-early wildfire detection, and our gas sensor is its digital nose. Apart from the unfathomable devastation wildfires cause, did you know that they account for up to 20 percent of annual global carbon emissions? That’s as much as the entire transportation sector combined – in other words all the cars, ships, and planes on the planet. Dryad’s sensors are mounted on trees, where they continuously monitor the local microclimate in order to detect flames early – and wirelessly notify local authorities long before camera or satellite-based systems can. These sensors are going to help save lives, homes, and tons of CO 2 from entering the atmosphere – all thanks to AI and connectivity. Solutions for a better world At Bosch, our aim is and always has been to improve people’s daily lives with our products and solutions. The Bosch Tech Compass respondents are optimistic about the beneficial potential of technology, and so are we: that’s why we continue to work on cutting-edge innovations that are designed to make life better for everyone across the globe. This is light years beyond high tech, it’s “high tech #LikeABosch”! Thank you.

Achieving stability by embracing change: Bosch believes AIoT, electrification, a ...

22.04.2021

Presentations

Business/economy

Achieving stability by embracing change: Bosch believes AIoT, electrification, a ...

Dr. Volkmar Denner, chairman of the board of management, Robert Bosch GmbH, and Prof. Stefan Asenkerschbaumer, deputy chairman of the board of management, at the annual press conference on April 22, 2021 Check against delivery.Ladies and gentlemen, In today’s turbulent times, everyone is talking about change: business, politics, and society. For us, this change informs all our business activities, and we are pursuing it with great elan. This is one of the most exciting periods in our company’s history. As I speak, yaw-rate and acceleration sensors made by Bosch are on the surface of the Red Planet as part of the latest NASA mission. They’re helping to stabilize the Mars helicopter, which is currently sending back some spectacular images. Down here on earth, I am delighted to welcome you to our annual press conference today. For us, pursuing change is not just about readjusting our core business, but also about turning new challenges into new business. Metaphorically speaking, charting a new course and sticking to it allows us to turn a headwind into a tailwind. Let me give you few examples of what I mean. Our response to climate change? Make our company carbon neutral. To the need for climate-neutral mobility? Electrical powertrains. To the pandemic? Molecular diagnostics as a growth area. To the great strides China and the U.S. are making in the development of IT and AI? Industrial AIoT by Bosch. Bosch has the right responses to the burning questions about our future – responses that will put the company at the forefront of business and technological change. Our company’s embrace of change is what gives it its stability. That’s something we demonstrated in a year of crisis. We responded to the challenges the pandemic threw at us with courage and determination. And at the same time, we continued to press ahead with our transition from existing business to new business, always aware that the former must be able to finance the latter. This makes it all the more important that we closed the past financial year with a clearly positive result despite the pandemic, and that we expect the same for this year. Stefan Asenkerschbaumer will now report on the business situation. Following that, I will turn to the subject of Bosch strategy.The business situation of the Bosch Group: confidence for 2021 Ladies and gentlemen, on this occasion a year ago, I spoke about the huge challenges facing us in the 2020 business year. Today, I can say without fear of contradiction that we handled these challenges well. And this success gives us confidence for the current business year. After all, 2021 will also demand a lot from us. The pandemic continues to pose significant risks. Especially in our automotive operations, moreover, we are noticing the supply shortages of semiconductors, which are very much in demand. In this fraught situation, we are doing all we can to help our customers. For some weeks now, we’ve been working on this problem in task forces involving customers and suppliers. Unfortunately, this situation cannot be expected to improve any time soon. Indeed, it seems likely that the entire industry will be confronted with this unsatisfactory situation for many months to come. Both for us and our customers, this will be a drag on business developments in a phase of economic recovery. In the long run, the automotive industry’s supply chains have to become less prone to disruption, especially when it comes to semiconductors. It is not only Covid-19 that has disrupted them, but natural disasters and fires as well. But even if so many worst-case scenarios coincide, we have to make a concerted effort to keep supply chains open to the greatest possible extent. This is also the subject of talks with our business partners. We are systematically adjusting our Mobility Solutions business sector to areas of future importance such as electromobility, automated driving, and future electronics architectures. This calls for huge upfront investments. We are tackling the challenges of the year ahead with optimism. Indeed, the figures for the first three months give us every reason to be optimistic, with Bosch Group sales growing 17.0 percent. We have to factor the significant impact of the coronavirus pandemic into this result, of course, yet even compared with the same period in 2019, sales increased 8.5 percent. Looking at the business sectors, we can see 13.6 percent growth in Mobility Solutions sales. In Industrial Technology, the 11.6 percent rise is attributable to the recovery of the mechanical engineering market. The Consumer Goods business sector continues to benefit from the sustained high demand for household appliances and power tools, growing by 29.4 percent. Energy and Building Technology is also performing well, with a pleasing 10.0 percent growth in sales. Sales performance varies considerably by region, influenced by three factors: first, the slump caused by the coronavirus pandemic last year, which affected different countries at different times; second, considerable exchange-rate effects; and third, the varying pace of economic recovery in the world’s major regions. Sales in Asia Pacific (including Africa) rose a nominal 37.5 percent, and 54.4 percent in China alone. In other words, sales in China were up by 26.7 percent compared with the same period in 2019. In North America, we see a decline of 3.2 percent. After adjusting for exchange-rate effects, however, sales grew 6.6 percent. In South America, the increase is 16.2 percent. In Europe, we were able to increase sales by 13.8 percent compared to 2020. In the 2021 business year, as things stand, we’re expecting the global economy to grow by just under 4 percent, following a contraction of around 3.8 percent last year. The strongest recovery will be in Asia, followed by North America. Both regions have demonstrated appreciable progress in containing the pandemic. This progress is now also making itself felt in the service sector, and is buoying growth. In the United States, there is the additional effect of the extensive stimulus plan. In Europe, by contrast, where many countries continue to be severely affected by restrictions as a result of the rising number of coronavirus infections, the recovery will remain on hold. The result will be that economic output grows far more slowly, at barely more than 3 percent. While last year’s drop in GDP should be offset globally in 2021, we are unlikely to see a recovery from the pandemic-related losses in Europe until next year. In automotive production, we see a risk that the semiconductor shortages will stifle the recovery that was forecast for 2021. As it is, automotive production will remain considerably below the pre-crisis level of 92 million vehicles in 2019 and the historic high of 98 million vehicles in 2017. The resulting overcapacity is a drag on the industry. Against this backdrop, and assuming that there are no pandemic-related restrictions on a similarly severe scale to those seen in the second quarter of 2020, we currently expect the Bosch Group to grow its sales by roughly 6 percent in 2021. We also expect our Mobility Solutions business sector to grow. Our forecast at present is that growth will be between 5 and 7 percent, even if the semiconductor shortages are making this forecast difficult. For Industrial Technology, we forecast growth of some 6 percent. For Consumer Goods, the continuing positive development means that we currently expect to see sales growth of roughly 5 percent over the record level of the previous year. For Energy and Building Technology, we anticipate growth in the region of 4.5 percent. As I mentioned earlier, 2021 will be another very challenging year as we work to ready the Bosch Group for the requirements that lie ahead. Our comprehensive program to improve our cost structures and competitiveness has put us on a solid footing in this regard, and we are continuing to rigorously apply a raft of measures. However, such measures mean that we will once again have to shoulder considerable burdens as a result of restructuring costs. That said, we’re confident that, year on year, we’ll be able to improve our margin from operations slightly to around 3 percent; excluding restructuring expenses, the margin will be roughly 4 percent. However, the difficulty of foreseeing the effects of the semiconductor bottlenecks and the pandemic means that this forecast is also uncertain. Nonetheless, 2021 will be an important milestone on our path to regaining our target margin of around 7 percent in the next 2 to 3 years. Our positive result in 2020 creates the foundation for this – a result we achieved despite the heavy burdens of the pandemic. In 2020, sales fell 6.4 percent to 71.5 billion euros. The basis for this comparison is the adjusted figure for 2019. In other words, it excludes the activities of our packaging machinery business, which were included in the original figure for 2019. Despite the drop in sales, we achieved an EBIT margin from operations of 2.8 percent. Adjusted for restructuring expenses, which placed a considerable burden on result in 2020, the figure is 4.7 percent. In addition to the upturn in sales in the second half of 2020, extensive cost adjustments helped the company stay in the black – a pleasing result in light of the pandemic. What’s more, with the exception of Mobility Solutions, all our business sectors reported a positive result from operations. And if the costs of the extensive restructuring measures are excluded, Mobility Solutions also posted a positive result. We saw a real highlight in Consumer Goods: benefiting from the sustained high demand for household appliances and power tools, the business sector reported a record high margin from operations of 11.5 percent. Our robust financial structure should also be highlighted. At 44 percent, we retained an excellent equity ratio. And with free cash flow reaching a record level of 5.1 billion euros, liquidity was also gratifying. This gives us a solid foundation from which to turn visions of the future into concrete success. On that note, I’ll now hand back to Volkmar Denner. You can find further details of our 2020 business figures in your press kits.Endurance and speed in times of change – Bosch has both Thank you, Stefan. I’ll now turn to the profound changes in our environment and in the company. But I can’t do that without first mentioning timescales. In this respect, Bosch has to be capable of two things – driving long-term structural change and acting flexibly at short notice. Seizing the opportunities presented by megatrends such as connectivity and climate change requires investment clout and staying power. One striking example of this is the five billion euros we have already invested upfront in electromobility. Long-term thinking is a classic Bosch trait, but it doesn’t mean we can’t be agile in the short term. After all, how else could we be successful in the consumer goods business? Recently, we have seen especially strong growth here in our online business. And we are constantly bringing new products to market in rapid succession. One example is Cookit, a food processor with an integrated cooking function that also opens the door to many digital services. In addition, we demonstrated determination when we entered the market for e-bike drives ten years ago. We soon became the European market leader, and now we’re the world’s leading manufacturer. The most recent example of our agility is the rapid PCR test for coronavirus, which we successfully developed for our Vivalytic platform at the start of the pandemic. This work took us under six weeks. The test can also detect all known mutations of the virus. On a longer timescale, we are opening up further applications for our platform. One area we’re looking at is the fight against multi-resistant germs, which is important for hospitals and care homes. This is a potential area of growth for Bosch. So as we can see, Bosch has endurance and stamina in times of change, but is also capable of speed when needed.Customers becoming integral to development – the logic of AIoT This ability is in evidence in our endeavors – guided by connectivity and artificial intelligence – to develop data-driven business. Until now, such business has been the domain of IT companies outside Europe. Or at least, the heaviest investments in these areas of future importance are being made in China and the United States. On closer inspection, however, we can see that Bosch brings something unique to the table. We can combine broad domain knowledge with expertise in IoT and AI – that is, in the internet of things and artificial intelligence. And the result is AIoT. Connectivity provides knowledge about how things are used. And if we use methods of artificial intelligence to evaluate this knowledge, we can develop new functions and services, which in turn increases the benefits that things offer. This enables us to close the gap in the value-creation cycle between our engineers’ laboratories and our customers’ daily life. One way to look at it is that this daily life becomes a productive part of our development work. For example, in the future we will be able to use cloud algorithms to dynamically estimate an e-biker’s arrival time based on empirical values, rather than just on a static map. Using field data to develop additional customer benefits will become a Bosch core competence. And it is our declared aim to derive service revenue from all product revenue. We are making Bosch into a leading AIoT company. Video security is a good example of what this means from a technological and commercial perspective. AI will be a key driver of its growth in the future – video analysis based on neural networks. For that reason, we are integrating detectors both into new cameras and into an AI box that can be connected to installed devices. We are developing such detectors for video security and for video sensor technology in driver assistance systems – only Bosch is capable of leveraging such synergy effects. The first application in video security is a traffic detector that will be able to detect and locate vehicles precisely in busy traffic situations, even under difficult lighting conditions. This is important when it comes to measuring traffic flows with a high degree of accuracy, for example. As more data flows into the application, the more AI will be capable of – not least detecting accidents accurately. Software updates will make such improvements possible – adding new functions to the product and keeping it up to date. In this way, AIoT has come full circle, with the product business being complemented by software business. We are making great strides here. In 2020, for example, we sold some four million connected devices for the home – household appliances, power tools, heating systems, and smart home devices. In 2021, we will sell twice as many. And over the next few years, our sales of AI-enabled products will reach the one-billion-euro mark. We’re making good progress, having already brought more than 50 product solutions to market. Not least, the catalyst for this development is the Bosch Center for Artificial Intelligence, or BCAI for short. Just three years after its establishment, the center has already achieved a return on investment with its projects, contributing some 300 million euros to our positive EBIT. With AIoT, we are putting our own stamp on the megatrend of digitalization. And in just the same way, we are taking a Bosch approach to climate action. This megatrend challenges the ethos of our research and development like no other: Invented for life. Here, too, Bosch really can provide lasting technological answers to ecological questions, as I’ll show you now.Momentum from within and beyond the company – climate action creates business We are pleased to see that climate action efforts are gaining momentum around the world. Above all, it is encouraging that the U.S. has returned to the Paris Agreement. One especially ambitious program is the European Commission’s Green Deal. For our industries, it has two major consequences: increased electrification and more hydrogen technologies. To achieve the targets it sets, the share of electric cars among new registrations in Europe will have to rise much more sharply than previously forecast – to at least 60 percent in 2030. At the same time, the annual rate of renovation to improve energy efficiency in residential buildings will have to double to about two percent – so there will be a lot to do in the housing sector as well. Most notably, however, there are signs that green hydrogen will be given a boost. The market for green hydrogen in the EU will be worth almost 40 billion euros by 2030 – with annual growth rates of 65 percent. For Bosch, all this means that structural change in our existing businesses will accelerate, and the opportunities for new business will increase. This breach with the past is being driven not only from the outside, but also from within the company – we are not stopping our drive toward carbon neutrality. With our more than 400 locations worldwide, we’ve been carbon neutral since the first quarter of 2020. This has now been officially certified. But although this is a big step, it’s only a first milestone. The reason for this is that we are now turning our attention to what is known as Scope 3, the CO 2 emissions along our entire value chain, from suppliers to customers. To cut these emissions, we have agreed a binding target with the Science-Based Targets initiative – a 15 percent drop from their 2018 level by 2030. That’s a reduction of 67 million metric tons of carbon dioxide emissions, and this alone will reduce our carbon footprint more than 20 times as much as the switch to carbon neutrality in our own facilities. And we’re firming up the target for suppliers and logistics operations, as well as for our own products. This means, for example, that a supplier’s or logistics provider’s carbon footprint will in the future be one of the criteria for awarding new procurement contracts. And, most significantly, it means that we’ll be pushing our product portfolio in the direction of energy efficiency or even technology change.Electric driving, electric heating – Bosch is enjoying market success with electrification Even if climate-friendly mobility is the principal focus, this development is taking place in more than just one of our business sectors. Electrification not only requires solutions for electric driving in cars, but also for electric heating in buildings. Both cases involve a transition – from the combustion technology used at present to electricity-based systems in the future. Bosch is pressing ahead and making progress with both, but both will require hydrogen technologies to be used alongside electric ones. Rather than thinking about this as an “either/or” situation, it’s worth keeping an open mind and regarding these as supplementary, coexisting development routes, rather than as competing ones. But first, let’s look at electrification itself. Electromobility is establishing itself as the core business in Mobility Solutions, our biggest business sector. We’re making heavy upfront investments in this area – a further 700 million euros this year alone. More than 40 percent of our powertrain division’s R&D spending goes into this technology, compared with just over 30 percent two years ago. And this investment is paying off, both technically and commercially. At 96 percent, the efficiency of our e-axle is the best in the market, for instance. And while the market for electrical powertrain components is currently growing by a good 20 percent a year, Bosch is growing by almost 40 percent. We had acquired orders worth over 20 billion euros by the end of 2020. Our annual sales of these components are set to increase fivefold to a total of some five billion euros by 2025. And we’ll break even a year before that. Electromobility has ceased to be a bet on the future. Our upfront investments are now beginning to pay off. In heating systems, too, we are growing much faster than the market with solutions based on electricity. Our sales of heat pumps grew by more than 20 percent in 2020, and are expected to triple by 2025. Still, this strong growth presents a challenge for the industry, and this is where Bosch’s typical strengths come in – financial resources, large-scale production capability, commercialization know-how. To name one example, our highly efficient and low-noise air-to-water heat pumps put us ahead of the game. Unit sales of these devices alone almost doubled in Germany in 2020. Whether in buildings or out on the streets, Bosch is one of the winners in the move toward electrification.Climate neutrality is impossible without hydrogen – Bosch is H 2 -ready The more electrification advances, the more the following question arises: why bother with hydrogen technology as well? Realistically speaking, the answer is because purely electrical solutions have their limits – both for transport and in buildings. In fact, marginal costs rise sharply if electrical solutions alone are used in all stationary and mobile applications. For example, it’s more cost-effective to install heat pumps in new buildings than in existing ones; in the same way, it makes more sense to install battery-electrical powertrains in cars than trucks, little sense in off-highway vehicles, and no sense at all in ships and many aircraft. A good rule of thumb is that the heavier the vehicle, the better suited it is to renewable fuels – and these fuels will be required for chemical and steel plants in the future anyway. If society truly wants climate action, it is essential that we do not play technological approaches off against each other. Instead, we must combine them. Ultimately Europe won’t be able to achieve climate neutrality without a hydrogen economy. It’s good that this realization is catching on. But an opportunity is being missed if renewable synthetic fuel derived from hydrogen and CO 2 remains off-limits in road transport. In any case, climate action is not about the end of the internal-combustion engine. It’s about the end of fossil fuels. And while electromobility makes road transport carbon neutral, so do renewable fuels, and Bosch is encouraging the development of both. It seems, however, that European policymakers are fixated on the short-term objective of putting an end to the internal combustion engine. However, they shy away from talking about the consequences this will have on employment. Instead, the initial plans for the Euro 7 regulation were so unrealistic that they risked turning environmental policy into questionable industrial policy. Meanwhile, things are showing signs of movement, and we’re particularly pleased that the debate has become more objective. After all, diesel and gasoline engines no longer have an appreciable impact on air quality, thanks in part to technological advances made by Bosch. The future limits should be strict, but it would make no sense, ecologically or economically, to comply with them in scenarios that are completely unrelated to clean air in cities, such as cold starts on hills and fully loaded vehicles with trailers. Ladies and gentlemen, using renewable synthetic fuels can make combustion engines just as climate neutral as battery-powered vehicles. Climate-neutral mobility is a goal that’s almost as ambitious as flying to the moon. When Kennedy announced the ambitious goal of putting a man on the moon, he left it up to engineers to decide how to achieve it. The European Commission is running the risk of doing the reverse. With their policy, which in effect amounts to a technology monopoly, the moon landing would not have succeeded. Potential paths to climate action are currently being cut off. Bosch, at least, is keeping its options open – we are electrifying our powertrain systems, but we are also H 2 -ready. The fuel cell, which converts hydrogen into electricity, is making rapid progress toward production-readiness. We’re developing both stationary and mobile fuel-cell solutions. From 2021 to 2024, we plan to invest around 600 million euros in the fuel-cell powertrain and a further 400 million euros in fuel-cell micro power plants. These figures clearly show that Bosch’s response to climate action is not only technology-neutral, but also commercially aggressive. We will be putting almost 100 stationary fuel-cell plants into operation this year alone. They will supply electricity to data centers, industrial manufacturers, and residential areas, among others. Our very first example of one of these plants is now operational in the center of Bamberg in Germany. Our development work for mobile fuel cells is underway in each of the three major economic regions. In recent weeks, we entered into a joint venture with China’s Qingling Motor Group, and a test fleet of 70 trucks is set to be on the roads before the end of this year. In addition, production of fuel-cell components will begin at our Wuxi plant in 2021. By the end of the decade, the market will be worth 18 billion euros worldwide. We have what it takes to be a leader in this market as well.Prospects for our associates – Bosch is building its future in its own plants, not on greenfield sites Despite all these business opportunities, it would be wrong of me to wrap up without addressing what this means for our associates. After all, the transformation of Bosch will be quite a challenge, not least for our associates – it will cost jobs, but will also create new ones. As it moves into the future, the company will remain true to itself and continue to reconcile not only economic and ecological objectives, but also social considerations. Our associates show that they are open to change, and that inspires confidence. Look at the works agreements concluded at our core plants. Although they contain cost cuts, they also pave the way for the future. Clearly, therefore, we’re not building our future on greenfield sites, but instead in our own plants. And while this might not be a textbook approach, we can take skills from the development and production of gasoline and diesel systems and apply them to new technologies. In the last two years alone, we have filled more than half our electromobility-related jobs with associates from the combustion-engine business. And our fuel-cell business is already creating jobs – for mobile applications, the number of associates worldwide has risen from 600 to almost 1,100 this year alone; for stationary applications, the headcount is set to double to nearly 500. We will be able to fill more than 90 percent of these positions internally, again primarily with associates from our powertrain division. In addition, we’ve set up a company-wide job placement platform. This enables us to pursue two goals at once: filling urgent vacancies more quickly and offering new prospects to specialists from our traditional areas of business. For example, we recruited nearly 100 engineers for a major vehicle computer project within just six months, mostly via our platform, almost one-quarter of them from the powertrain division. And just as importantly, our associates are carving out their own paths; now, more than ever before, they see Bosch as a learning organization. Their uptake of digital training opportunities underscores this point. Since the beginning of 2020, our in-house learning portal has been accessed more than 400,000 times. In 2020, more than one in three training sessions were offered online; by 2023, this figure is set to rise to one in two. We have an impressive 1,200 video tutorials available on our intranet’s “BoschTube,” and some 7,000 associates have already enrolled in our e-university. What’s important is that the content of the learning opportunities aligns with Bosch’s roadmap for the future. This is illustrated by the software training courses we offer our Mobility Solutions developers, for example, and most notably by the AI training we offer to more than 25,000 executives. As you can see, ladies and gentlemen, we’re doing a lot to qualify our associates for the future, and to give them jobs that have a future. It is good to know that Bosch’s transformation is more than just a strategic goal. It’s also been part of our associates’ everyday working lives for quite some time. It is this innovative ethos, embodied by our workforce, that will enable us to keep coming up with new and yet invariably distinctive answers to the big questions of the coming years – whether with respect to digitalization or climate action. At the end of this decade, I am certain that Bosch will still be a stable yet dynamic company. Thank you for your time. Now we’re looking forward to hearing your questions!

Beneficial AI – building trust together in the digital world

06.01.2020

Presentations

Business/economy

Beneficial AI – building trust together in the digital world

Dr. Michael Bolle, member of the board of management of Robert Bosch GmbH, and Mike Mansuetti, president of Bosch in North America, at the Consumer Electronics Show in Las Vegas on January 6, 2020Check against delivery.2001: A Space Odyssey. The Terminator. The Matrix. Ex Machina. It sounds like we’re sharinga list of our favorite movies. But actually, all these movies have something in common.They all depict a future in which machines have learned to think for themselves – with disastrous consequencesfor humanity. Whether the machines manipulate, enslave, or replace us, the message in the movies is the same: by developing artificial intelligence, we’re opening Pandora’s box. I like science fiction as much as anyone, and portraying AI as the villain has kept audiences entertained for decades. But the time has come to talk about the technology’s true potential – the potential to provide real value, for real people. “How can we make artificial intelligence beneficial? How can it be used to complement human intelligence?” These are some of the big questions at CES this year. So what’s our answer? Artificial intelligence is not science fiction anymore – it’s already an integral part of our daily lives. It’s fundamentally changing how we drive, how we work, how we learn, how we shop, how we travel. At Bosch, it’s also becoming part of the products we make – products that will assist and support us, and make life easier overall. Whether it’s being used in manufacturing, in smart homes, or in self-driving cars, one thing is for sure – in line with our “Invented for life” ethos, we want to make AI safe, robust, and explainable. Where the world of work is concerned, we’re not just facing a technological shift, we’re also facing a critical shortage of skilled workers. So it’s also against this backdrop that it will be essential for humans and machines to work together. At Bosch, we believe this is self-evident. And with this in mind, we’re trying to shape the digital transformation by educating and upskilling our workforce, and investing in our associates as well as in the intelligence of our products and machines. As a society, we must learn to accept a technology that is capable of learning itself. One way to do this is to invest more in our own learning – and that’s exactly what we’re doing. Over the next two years, we will be introducing wide-ranging training programs aimed at making nearly 20,000 of our associates AI-savvy. I’ll tell you more about that later. But the societal benefits of AI go far beyond our daily lives and work. It also holds tremendous potential to benefit our planet and its climate. We intend to use this potential to realize our goal to maintain a balance between our economic, ecological, and social responsibilities. At the end of 2019, we achieved carbon neutrality for all our locations in Germany. By the end of this year, all 400 Bosch locations worldwide will be completely carbon neutral. When this happens, we will be the first major industrial enterprise to have achieved this ambitious goal, all within a little over a year. And to do this, we will be making use of our own solutions as well: our energy platform, for example, already uses intelligent algorithms to monitor consumption in manufacturing. It quickly identifies deviations in individual machines’ energy use and offsets load peaks. This alone has reduced CO2 emissions at individual plants by more than ten percent over the last two years. For a company that has 270 manufacturing sites, that’s some significant savings potential! Our success here has prompted us to market the energy platform externally. And it won’t end there: AI means we’ll be able to forecast and reduce energy consumption over the long term as well.AI is creating markets, but digital trust is indispensable This example underlines that artificial intelligence also offers considerable business potential. A number of different studies support this notion. For example, AI is expected to boost GDP substantially in major economies across the globe by the end of this decade – PWC estimates a 15 percent boost in North America alone. At the same time, global AI software revenue is projected to reach nearly 120 billion dollars by 2025, a twelve-fold increase compared to 2018. And the World Economic Forum predicts that global job losses as a result of AI will actually be offset by the creation of new ones, resulting in a net gain of nearly 60 million new jobs by 2022. As mentioned earlier, these jobs will require significantly new competency profiles, which will necessitate a strong push to reskill and upskill people. It’s indisputable that the impact of artificial intelligence will be huge. However, we must make the benefits of AI comprehensible for people, and even more importantly, establish trust in the digital world. Our CES slogan captures our approach here nicely: “Beneficial AI – building trust together.” In this endeavor, Bosch is pursuing a two-pronged approach. On the one hand, we’re doing the technical groundwork, developing solutions, and using our innovations to open up new areas of business. On the other hand, we will use AI to realize our strategic imperative of creating technology that is “Invented for life,” and in doing so, convince society of the benefits of AI. Remember, it was our engineers that developed lifesaving inventions such as electronic stability control, airbag control units, and anti-lock braking systems for vehicles ranging from passenger cars to motorcycles to e-bikes. This is what we mean by technology “Invented for life” – and our work with AI is no exception. By putting it to use in automated vehicles, for example, it too will be a technology that saves lives, as we will explain in more detail later on.Trust, responsibility, and ethics in AI We take entrepreneurial responsibility seriously, and it defines our approach to new technologies like artificial intelligence. The decisive factor for responsibility in the digital world is trust. This trust will be just as important for our digital business as product quality is for our traditional business. We have to work on developing both AI and trust in AI – without the latter, the former will not be successful in the long run. But how can we establish this trust? By creating AI that is transparent, safe, secure, and robust. When it comes to building trust, another key aspect is data security and data privacy – especially where personal data is concerned. At Bosch, our approach is simple: when it comes to all our smart products and services, users have full transparency and control over the data collected and who gets to use it. Moreover, in order to build trust among our customers and partners, as early as 2015 we established guiding principles for data protection in our IoT business. This was several years before the GDPR regulatory framework was introduced as European standard. We’re now working on a similar set of principles for our future use of artificial intelligence: an AI code which sets out ethical guidelines for the development and usage of AI, especially in cases of doubt and dilemma. Going forward, it will be essential that people remain in control of systems that use AI. Take the example of driver assistance: here, we want to integrate AI in such a way that it can always be overridden by the driver. We don’t want to lock the algorithms from our AI models in a little black box. The rules and parameters behind decisions must remain comprehensible, at the very least for specialists. That said, Bosch and the big tech players differ in our approaches to AI in one fundamentally important way: our focus is on the application of AI for physical objects. Whether it’s deployed in an automotive emergency braking system or in factory production, our AI explains the physical world to machines. Our latest camera for automated driving uses AI to understand what it sees – to infer, say, whether a pedestrianis going to step out into the road or not. This will improve object recognition and make automatic emergency braking more reliable, thereby increasing safety. At Bosch, we want to harness the power of artificial intelligence to improve technology and the performance of our products and machines. We call this industrial AI, and we’re using it to develop smartsolutions in three key domains: mobility, residential, and manufacturing. It’s no coincidence that we emphasize the “things” when talking about IoT. We’re bringing connectivity and intelligence to our own products and machines. We know cars and traffic, factories and buildings, inside and out – no other tech company can match the breadth and depth of our cross-domain expertise. Our own sensors provide us with a massive amount of data. And if we apply AI methods to that data, we can create new services and applications. By the middle of this decade at the latest, each and everyone of our products will either have artificial intelligence itself, or have been developed or manufactured with its help. Ultimately, we plan to teach our products to function as assistants – for our customers, and for our own developers.Investing in AI research and development To achieve this, we want to become one of the global leaders in AI innovation as well. Our research and development activities are all geared toward this goal. Bosch currently invests more than 4 billion dollars annually in software development, and employs around 30,000 software engineers. Established in 2017, the Bosch Center for Artificial Intelligence is already working on more than 150 projects. It employs some 250 AI specialists at seven locations around the globe including two here in the U.S. – in Pittsburgh, Pennsylvania, and Sunnyvale, California. Our U.S. research teams play a key role in our AI development activities, above all in robotics and automated driving. But we’re not working in a vacuum here. Especially where AI is concerned, a technology company like Bosch sees itself as part of the larger scientific community. In Germany, for example, we’re a founding member of the “Cyber Valley” initiative – an AI research alliance between academia and industry. Among other things, as part of this we’re investing more than 110 million dollars in an AI campus, which from late 2022 will be home to 700 AI experts from Bosch as well as from external startups and research groups. Here in the U.S., we’re collaborating closely with Carnegie Mellon University on AI research. Carnegie Mellon has been working on artificial intelligence for 60 years, since the technology’s earliest days. They have been responsible for pioneering innovations in areas like self-driving cars, facial recognition, and language processing. As we see it, industry and academia each have an essential contribution to make. And we highly value the transfer of knowledge between our developers on both sides of the Atlantic.SoundSee hears what’s broken in space – with AI from Bosch A great example of an exciting collaboration with one of our U.S. partners is currently deployed about 240 miles above the Earth’s surface. It’s an innovative AI-based sensor system called SoundSee. This little device will be playing quite a big role in outer space. The SoundSee technology will be used to perform deep audio analytics on the ISS. Using highly-sensitive microphones, it will capture ambient noise emitted from the station’s systems and equipment, and then use AI to spot potential anomalies from the audio patterns. Basically, SoundSee will hear if something on the station is broken – and can tell whether it needs to be repaired or replaced. We developed this system together with the aerospace company Astrobotic Technology Inc. In November, it was sent into orbit and will be integrated into the Astrobee robot shortly. Of course, the new sensor system will also be very useful down here on earth. In manufacturing, for example, it can improve predictions about machine downtimes, thus helping to reduce maintenance costs and increase productivity. But on board the ISS, this technology could even be lifesaving.Virtual visor – a U.S. idea is a “Best of Innovation” award winner We’re showcasing another example of the ingenuity of our American workforce here at CES – and this world premiere also underlines their lateral thinking. Some of our engineers came up with a digital solution for a common and often dangerous hazard that drivers frequently face. It’s an innovation that replaces a nearly 100-year-old automotive product: the sun visor. According to a study by NHTSA, sun glare causes nearly twice as many accidents as any other type of weather-related condition. But we now have a solution: our “virtual visor.” At first glance, it looks like a see-through LCD display mounted at eye level. The special thing about it, though, is that it’s connected with a driver-facing camera equipped with AI facial detection and analysis. Its software calculates both the driver’s line of sight and the angle of the sun in order to strategically darken individual sections of the display. Everything else remains transparent. We think the Virtual Visor is another great example of technology “Invented for life,” and the CTA apparently thought so too. The product was honored with a prestigious CES 2020 Best of Innovation Award – you can test it out for yourself at our booth.3D vehicle display – our second Best of Innovation Award Our new 3D vehicle display also won a CES Best of Innovation Award – and I’ve been told it’s no small feat to win two of those. Vehicle displays in general offer huge business potential – after all, the global market volume is set to more than double by 2025, to 30 billiondollars. Our award-winning display uses a multi-view 3D technology which is especially affordable, since it works without the need for eye tracking and 3D glasses. To describe how it works, let’s go back to the movies for a moment. We’ve all seen 3D films, where the technology makes our experience more vivid and entertaining. Inside a vehicle, 3D performs a similar but more useful function: it helps people understand information more quickly. The display’s depth of field means drivers can grasp important visual information faster, whether it’s an alert from an assistance system or a hazard warning. Alerts seem to jump out of the display and are much more obvious and urgent, as well as far harder to overlook. I don’t know about you, Michael, but anything that tells me what I really need to be paying attention to is a win in my book.Interior monitoring – technology that can help keep children safe Think of the dangers posed by fatigue and distraction – the longer we’re behind the wheel and the more technology is present in the cockpit, the greater they are. Here, our driver monitoring system uses artificial intelligence to identify these distractions through cameras which recognize the driver’s line of sight, head position, and blink rate. When it determines a critical point has been reached, it reacts by sounding an alarm or providing driving assistance, depending on the automaker’s wishes, and also legal requirements. In the EU, this kind of system is set to be standard in new vehicles from 2022. This technology will also play an important role in automated driving. After all, the next few development stages will still require drivers to remain alert and ready to take over in critical or tricky situations. To ensure drivers are able to do this, the monitoring system calculates how ready they are to respond at any given time, and the transfer of driving responsibility is then timed accordingly. Depending on the design, some systems can also monitor the car’s other occupants and enhance their safety, for example by detecting changes in passengers’ sitting positions and adjusting their airbags and seatbelt tensioners for optimal crash protection. Or by identifying the presence of children inside parked cars. In 2018, parked cars claimed the lives of more than 50 children in the United States, either because they had been left inside for longer than intended or had climbed in unnoticed. Bosch’s new system can recognize the presence of children and warn parents in a flash by sending a message to their smartphone. In a critical situation, it can also alert the emergency services. As the Hot Cars Act currently being debated in Congress shows, there is considerable interest in solutions to prevent these tragedies. Once again, our technology doesn’t just make life better, it can help to save lives. Looking ahead, we plan to extend our interior monitoring systems to encompass in-vehicle sensing and deploy this inridesharing fleets. In-vehicle sensing will allow us to detect when a passenger leaves something behind in a shared car, for example, or if they need help in a critical situation. For us, offering real benefits is what it’s all about. Nearly all our driver assistance systems enhance both safety and convenience. We are one of the automotive industry’s leading suppliers in this field. In 2019, our sales rose by 12 percent to some 2.3 billion dollars. From a technical point of view, we’re using driver assistance as a stepping stone to automated driving. By 2022, we will have invested some 4.7 billion dollars in developing this technology and increased our workforce of dedicated engineers to 5,000. To this end, we’re working on making lidar sensors production-ready. Alongside our new video camera with AI and radar and ultrasonic sensors, Bosch will soon offer the complete sensor portfolio needed for automated driving. Few automotive suppliers worldwide have as much expertise in this area as Bosch. Our lidar will be the first of its kind that is suitable for use in automotive applications, since it’s scalable and can be manufactured in large volumes. It’s also the first lidar technology to be suitable for automated driving functions at SAE levels 3-5, offering long-range sensing capabilities in combination with a wide field of view and an exceptionally high resolution. Working together, our multiple sensor types will help to ensure extremely reliable environment recognition. To surmount the many challenges on the road to fully-automated driving, Bosch is bringing together its profound expertise in sensors and systems and that’s the type of expertise that only an automotive company can have. We’re already testing automated driving in a range of environments, including one that is widely regarded as the final frontier: city streets. I’m happy to report that our pilot project with Mercedes-Benz for an on-demand ride-hailing service with automated vehicles is now up and running. Automated S-Class vehicles are now providing an app-based shuttle service in California between West San José and downtown for selected users. Ultimately, the aim of this project is to gain valuable insights for the development of automated driving, and to answer the question of how self-driving cars can best be integrated into a multimodal mobility system. Our development work on this project encompasses both the use of AI as well as simulations and tests designed to address the kind of driving situations that occur very rarely in road traffic. We’re not just using our mobility solutions to teach cars how to drive. We’re also using them to make electric and connected driving a reality. This is enabling us to open up new areas of business and forge partnerships with new customers. For example, we’re developing a hydrogen powertrain for the heavy-duty trucks made by U.S. startup Nikola Motor Company. We’re also suppling our solutions to mobility service providers such as DiDi and Lyft. For DiDi, we’ll soon be providing a cloud service that helps to extend the service life of car batteries. When it comes to urban mobility for the future, you can experience our vision in an IoT concept shuttle at our booth. This year we’re showcasing what we offer mobility service providers to help them operate safe and efficient automated ridesharing and ride-hailing businesses.Bosch MEMS technology – for smart glasses without the sci-fi look Beyond this, we’re also using our expertise in everything related to mobility as the basis for innovation in other domains. The best example of this is sensors based on micromechanical systems – called MEMS for short. We’re the market leader for these sensors, which are used for automotive applications as well as smartphones. Our latest development in this area is being showcased here at CES: our light drive system for smart glasses. The smallest of its kind, it’s nearly a third slimmer than existing ones on the market and can be integrated into nearly any type of frame, becoming part of your everyday glasses. It uses a MEMS-based laser scanner and holographic mirror to project an image on the wearer’s retina. This image can contain any kind of text message – for example from the navigation system or your personal calendar. And you, in turn, can be kept constantly up to date – without looking like you’re on the way to a Star Trek convention every time you put them on. Another domain where AI has the potential to deliver enormous benefits is healthcare. Here, our Indian engineers have developed a cutting-edge innovation called Vivalution (brand name was changed) which is a CES® innovation award honoree. In a nutshell, it’s a smart pathology platform for medical diagnostics powered with advanced machine learning algorithms. With the help of AI, it analyzes human cells’ form, shape, and structure for deviations, thus providing physicians with information on possible diseases. And it does so in minutes, which dramatically shortens the testing process. Helping people diagnose health issues quicker and more accurately – this is also what we mean by technology “Invented for life.”AIoT to benefit everyone – training for tomorrow’s work As we see it, the IoT and AI should benefit everyone. To do this, they must be more than technological gimmicks and actually make people’s daily life and work easier. This is true for all our domains: connected mobility, connected homes, and also connected industry. Especially in the world of manufacturing, artificial intelligence can supplement human creativity, and more crucially, relieve workers of routine tasks. On every new path we tread, we take our workforce with us. On our way to creating the factories of the future, we want to prepare our associates for the work they’ll be doing in the future. This brings us full circle to our AI training program, which I mentioned earlier. It consists of three parts: First, we’re training roughly 16,000 executives on the business aspects of AI. Our digital transformation is enabling us to master a balancing act: on the one hand, remaining an industrial enterprise, and on the other, becoming a leading IoT and AI provider. For this, our leadership will have to be capable of making the right decisions, which is why we’re building up their AI expertise. Second, we’re expanding our AI learning platform. This platform is similar to an online university, but uses examples and exercises from real-life operations at Bosch. More than 1,500 of our engineers are already using the platform, a number that will likely double by next year. Some of its notable features are the exchange of experience our AI learning platform facilitates, as well as the use of best-practice examples and competitions. Third, we’re training nearly 500 experienced engineers in AI development methodology. This is the highest level of our training program, what is effectively a supplemental course of study in things like data engineering and data analysis. We’re not just increasing the number of AI engineers by hiring dedicated specialists; we’re also doing it by reskilling our existing people. All told, this will get 20,000 of our associates up to speed on the technology. As we see it, it’s not only part of our corporate responsibility to offer this kind of training, it’s also in our strategic interest.Conclusion Ladies and gentlemen, it’s clear that developing artificial intelligence will require us to focus on more than just technological innovation. On one hand, we need to invest heavily in human intelligence, and on the other, we need to convince people of the true potential of this technology. “Beneficial AI: building trust together” – it’s more than just a nice catchphrase we’re using here at CES. We truly believe that AI holds the key to making our lives safer, easier, and more eco-friendly. Please come visit our booth in the Central Hall to see some examples of this in action. And together, let’s work to dispel any doubts and usher in a new era of real-life science fiction, where AI is the hero.