BMW Bets on New AI to Stay Relevant

Starting in 2026, BMW will begin equipping its new vehicles in China with artificial intelligence from none other than Alibaba, the e-commerce giant best known for powering online shopping.

The new technology will debut in the German automaker’s upcoming Neue Klasse series.

According to Bloomberg, the partnership is designed to “future-proof” BMW’s vehicles in China by offering a deeply localized, tech-forward driving experience built on Alibaba’s advanced language model Qwen AI.

China’s car market isn’t just big—it’s fast.

Sales of electric vehicles there now top one million units per month, and Chinese brands like BYD, Xpeng, and tech entrants Huawei and Xiaomi are rapidly redefining what it means to build a smart car. These companies have embraced AI and digital services as key differentiators, and they’re pulling ahead.

BMW’s sales in China dropped by 13.4 percent in 2024, and early indicators suggest 2025 won’t reverse that trend.

That slump, combined with the speed at which local competitors are advancing, leaves little room for delay.

AI Assistant with a Local Touch

The AI integration will be handled via Alibaba’s subsidiary Banma and its Yan AI system. Two key agents, Car Genius and Travel Companion, will be baked into BMW’s existing Intelligent Personal Assistant (IPA).

Together, they promise a “smart cockpit” that’s capable of intuitive, human-like interactions.

Car Genius will assist with vehicle functions in real time, while Travel Companion is designed for intelligent trip planning—think restaurant suggestions based on personal taste, live traffic updates, and parking info. All of this will be tailored to Chinese users.

Alibaba, meanwhile, is going all in.

The company has committed more than $51.4 billion over the next three years to develop Qwen AI, which is already being used by domestic automakers like Zeekr and Leapmotor.

The BMW deal gives the platform a major global credibility boost.