How Autonomous Vehicles are Likely to Affect Business and Society in General
In June 2021 there will be a major Exhibition and Conference on Autonomous Vehicles in California organised by automotive manufacturers and IT companies who will meet with leading industry experts to discuss the latest developments https://www(dot)autonomous-vehicles-conference(dot)com
Over the last four years there have been many successful tests of self-driving cars and vehicles in the UK, China, Japan, the US and around the world. Clearly there needs to be further progress until these vehicles become mainstream but advances are being made rapidly.
You are expected to research both academic and non-academic articles on Autonomous Vehicles (AV) discussing how AVs are likely to affect business and society in general. You should consider key issues such as the impact on existing businesses and the new business opportunities that will arise. You must also consider the privacy and security risks and other potential problems and issues. What will cities and towns need to do to plan for the transition to autonomous vehicles?
Note: Many articles in this new field will be from quality news sources and consultancy reports but you must also draw on some academic journal articles as well as other sources in order to present a balanced summary of current thinking in this emerging discipline. Please remember that company websites are biased – they always promote themselves and what they are doing - you should therefore try to refer to a minimum of company websites. You will need to find independent, objective sources of information as much as you can such as academic journal articles etc. to support your work. You must reference ALL sources appropriately using the Harvard Referencing System
Format: Business Report with four parts: Executive Summary, Introduction, Main body and Conclusion. References should be based upon the Harvard Referencing System
Word count: 1500 words (the References listed and any appendices are OUTSIDE of this word count and do not count in the 1500 words)
* The extra 150 words are towards the references
How Autonomous Vehicles are Likely to Affect Business and Society in General
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Executive summary
Autonomous vehicles are increasingly becoming viable and will soon dominate the automobile industry. This essay analyzes the possible effects of autonomous vehicles on both business and society and the potential challenges and repercussions across the globe associated with them. Heavy commercial vehicle owners may be the first to implement the technology due to its efficiency in cargo transportation. It facilitates more extended periods of traveling to meet the growing demand (Clements et al., 2017, pg 1). Personal transportation is also likely to shift to the latest technology and might threaten the business of group travels and taxis. Suppose autonomous vehicle technology captures wider markets across the globe. It will have more significant economic and societal impacts, but the challenges may also arise that have to be dealt with properly because it is still uncertain.
Introduction
An autonomous vehicle is a car that can sense the environment around and operates without being controlled by a human. This type of car can do everything an experienced driver can do while driving. It can also go anywhere a traditional vehicle goes without the presence of a human passenger. A fully autonomous vehicle is self-aware and can make its own choices. For instance, you can instruct an autonomous car to "drive me to work," but it can decide to take you to a different location instead. Still, a fully automated vehicle follows instructions and drives itself. Autonomous cars are currently undergoing testing in several countries and are not available to the general public. Its challenges range from legislative to technological to philosophical and environmental.
Effects of autonomous vehicles on business
Trucking and Freight Business.
Freight and trucking are likely to experience a significant boost from autonomous vehicles. It will reduce truck and commercial vehicle collisions because they contain cruise control and lane-centering features. The automated trucks facilitate convoying whereby the lead truck driver controls multiple trucks following which are connected wirelessly; hence one driver can control several trucks at a particular route (Kumar, 2020). This will facilitate long travel distances with large quantities of goods, reduce delivery time, and increase freight companies' revenue. The truck and freight industry will also save on the cost of wages paid to truck drivers, increasing profitability. This technology will also increase monitoring costs because the freight companies will have to install monitoring systems to ensure that they are running well.
Data-driven value chain.
Autonomous cars will consume and generate information at different unprecedented levels. The data to be used by the vehicles will be generated from different components and sources which include radars, cameras, GPS, sensors, lidars, and maps. All these components must be integrated in real-time to enable the AVs to avoid obstacles, creates experiences, comply with traffic rules, promote safety on roads, and navigate roads (Kumar, 2020). The intake of those data, velocity, and volume will require software capabilities, new models, and new infrastructure for it to be actualized. For instance, several technological and business partnerships have emerged to actualize it by creating robust datasets and enabling access like HD maps. The ownership, monetization, and consumption of all datasets required will lead to new business models' growth, resulting in new startups emerging.
Insurance business.
The emergence of autonomous vehicles will influence how insurance entities conduct their business. This is because human-caused road accidents will decrease due to the use of driverless cars. Insurance companies will have to rethink and move away from traditional insurance and business models. There is a possible shift towards ensuring vehicles' manufacturers against liability due to technological repercussions and failures related to automated cars. For instance, global companies such as Mercedes, Volvo, and Google have begun self-insuring against the services and products they produce. This generates more revenue for the industry.
Mining business.
The adoption of autonomous vehicles in the mining sector is likely to improve the safety of miners. The AVs can operate on roads where the probability of accidents occurring is minimal. The use of autonomous vehicles by mining industries improves workers' safety by taking mining operators out of risky environments, especially when there is a likelihood of being trapped or tunnels collapsing. The AVs also reduce carbon dioxide emissions by 60 percent because of improved driving. It also saves on labor costs due to the use of autonomous machines, including excavators and forklifts.
New business opportunities.
The new opportunities for the insurance industry are the emergence of new insurance products such as "robotaxi" insurance which is different from ordinary car insurance policies. The new policies will cover autonomous vehicles against risks and liabilities in case of any accidents (Araya, 2019). The insurance companies will have to determine whether the car was compliant with all rules at the time of the accident to compensate for damages or loss suffered.
It creates new opportunities for a delivery business. Approximately 4 billion people live in urban centers worldwide, and the number is expected to rise by 70 percent by 2050. This will increase demand for food, groceries, pharmaceuticals, and laundry. Therefore, the driverless car will assist delivery companies such as UberEats in enhancing their customers' faster food delivery.
Expanding connectivity of...