Home
News
Researcher’s Note: UNIT 24. Smart Resources: AI for Optimal Allocation

Researcher’s Note: UNIT 24. Smart Resources: AI for Optimal Allocation

Mary Barra, the CEO of General Motors, isn’t just building cars; she’s building a future where transportation is safer, more efficient, and more sustainable. Since taking the helm in 2014, Barra has been leading GM through a significant transformation, embracing electric vehicles, autonomous driving, and, most importantly, artificial intelligence.

Barra understood that GM’s long-term success hinged on its ability to innovate and adapt to a rapidly changing market. Inspired by Blue Ocean Strategy5, she recognized that GM needed to create new market space and make the competition irrelevant. AI became a key enabler of this strategy, allowing GM to optimize resource allocation, improve decision-making, and develop groundbreaking new products and services6.

The Turning Point: AI-Driven Autonomous Vehicles

A pivotal moment in Barra’s AI journey was GM’s push into autonomous vehicles2. She saw the potential for self-driving technology to revolutionize transportation and create a safer, more convenient experience for consumers. However, developing autonomous vehicles required significant investment and a willingness to embrace cutting-edge AI technologies3.

Barra made a bold decision to allocate substantial resources to GM’s Cruise autonomous vehicle division. This wasn’t just about building self-driving cars; it was about creating an entirely new transportation ecosystem. Barra’s vision was to leverage AI to optimize every aspect of the autonomous vehicle experience, from route planning and traffic management to passenger safety and comfort1.

“If you think about autonomous vehicles, that’s the ultimate in artificial intelligence, coupled with machine learning,” she said2. She pointed out that human error causes 90% of road accidents today. Autonomous technology, she argued, can mitigate these risks by eliminating impairments like fatigue and ensuring adherence to traffic laws2.

The move was not without its challenges, especially given scrutiny from regulatory bodies in the wake of incidents involving autonomous vehicles1. Despite this, Barra has reaffirmed that GM is committed to address these challenges head-on2. She maintains that integration of AI and machine learning in autonomous technology promises a future with fewer road accidents and improved safety standards2.

The Strategy Behind AI-Driven Resource Optimization at GM

Barra’s strategy for leveraging AI to optimize resource allocation is based on several core principles:

Focus on Strategic Investments: Barra has prioritized investments in AI technologies and autonomous driving, recognizing that these areas have the greatest potential to drive long-term growth and create new market opportunities.
Embrace Agile Development: Barra has fostered a culture of experimentation and agile development within GM, allowing teams to quickly test new AI applications and iterate based on real-world data. She understood the ability of AI to allow GM to “make your car better or your vehicle better as you own it”1.
Prioritize Resilience: In today’s complex and uncertain world, Barra understands the importance of building a resilient organization.

The Impact: A Leader in Autonomous Vehicle Technology

Under Mary Barra’s leadership, GM has become a leader in the development of autonomous vehicle technology. The company’s Cruise division has deployed self-driving vehicles in several major cities and is working to scale its operations1. GM is also using AI to improve its manufacturing processes, optimize its supply chain, and enhance the customer experience3.

Barra’s journey serves as an inspiration for business leaders looking to leverage AI for strategic advantage. By embracing AI, fostering a culture of innovation, and maintaining a focus on customer needs, organizations can create new market space and achieve sustainable growth. Remember, “You may not control all the events that happen to you, but you can decide not to be reduced by them.” As GM navigates the complex landscape of autonomous vehicle development, Barra’s leadership will be crucial in steering the company towards its goals2.