What challenges did AVL face before AI implementation?

Vehicle development cycles were lengthy, hampered by reliance on hardware prototypes. Difficulties synchronizing system and software-oriented processes limited efficiency. Traceability between virtual simulations and real-world tests was lacking. The automotive industry needed innovation for safer, greener vehicles.

What was the impact of the AI solution?

Reduced vehicle development time to less than 24 months without physical prototypes. Improved process efficiency and product quality. Enhanced sustainability by minimizing resource consumption through simulation-driven development. Enabled full traceability from virtual to real testing environments.

Source

Microsoft

AVL accelerates vehicle development with AI-driven virtual testing

Use case typeAutomotive operations automationUpdated Jun 13, 2026

AVL, a leading Austrian automotive technology company, partnered with Microsoft to transform vehicle development using AI and cloud-based solutions. The initiative aims to achieve series production readiness within 24 months, eliminating the need for hardware prototypes. By leveraging Azure Cloud, Azure OpenAI, and virtualized end-to-end development tools, AVL automated system test pipelines, codified engineering knowledge, and enabled full traceability from virtual to real testing environments. SaaS solutions, including AVL DevOps Pilot, were deployed on Azure Marketplace, providing scalable, simulation-driven approaches to optimize resource use. This digital transformation delivers more efficient processes, shorter development times, and higher quality, supporting sustainable, safe mobility.

Organization: AVL
Industry: Automotive
Location: Austria
Published: March 2025

Reported outcomes

Strategic outcomes

New business modelLaunched a SaaS solutionSpeed & agilityShortened vehicle development cyclesCost efficiencyImproved process efficiency and qualitySustainability & ESGEnabled simulation-driven resource reduction

Primary read

Use case focus

Showing 2 of 2

1Virtualized vehicle development with AI-driven simulation and test automation
2Automated synchronization of system and software development processes

Vehicle development cycles were lengthy, hampered by reliance on hardware prototypes.
Difficulties synchronizing system and software-oriented processes limited efficiency.
Traceability between virtual simulations and real-world tests was lacking.
The automotive industry needed innovation for safer, greener vehicles.

Collaborated with Microsoft to leverage Azure Cloud and Azure OpenAI technologies.
Automated system test pipelines using AI in the cloud.
Developed end-to-end toolchains for synchronizing development processes.
Launched AVL DevOps Pilot as a SaaS solution on Azure Marketplace.

Technologies

Azure Cloud Azure OpenAI

Reduced vehicle development time to less than 24 months without physical prototypes.
Improved process efficiency and product quality.
Enhanced sustainability by minimizing resource consumption through simulation-driven development.
Enabled full traceability from virtual to real testing environments.

Architecture

The solution virtualizes the entire vehicle development process on Azure Cloud. System test pipelines are automated and codified using Azure OpenAI, enabling full-cycle simulation and synchronization between system/software domains. Data and models flow end-to-end in the cloud, and SaaS tools (like AVL DevOps Pilot) enable real-time analytics and traceability across design, testing, and validation stages.

Sources & evidence1

Groundedness: 5/5

Primary source

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