Bosch and CARIAD Develop AI-Driven Software Stack for Level 2 and 3 Automated Driving with 2026 Launch Target

Bosch and CARIAD Develop AI-Driven Software Stack for Level 2 and 3 Automated Driving with 2026 Launch Target

(IN BRIEF) Bosch and CARIAD are advancing their Automated Driving Alliance by creating an AI-powered software stack for Level 2 and Level 3 automated driving, with a production rollout targeted for mid-2026. Developed entirely in-house with proprietary IP, the system uses AI across perception, decision-making, and control functions to deliver human-like driving behavior. Already implemented in test fleets such as the VW ID.Buzz and Audi Q8, the stack is being refined with large-scale global road testing and frequent software updates. The technology will be integrated into Volkswagen’s new software-defined vehicle architecture and offered to other automakers worldwide, marking a significant step toward large-scale deployment of intelligent, safe, and convenient automated driving.

(PRESS RELEASE) STUTTGART, 11-Aug-2025 — /EuropaWire/ — Bosch and CARIAD are deepening their collaboration in the Automated Driving Alliance to create a next-generation software stack for Level 2 and Level 3 assisted and automated driving, built entirely in-house and powered end-to-end by artificial intelligence. By embedding AI across all technology components – from perception to decision-making and vehicle control – the partners aim to deliver driver assistance systems that respond as naturally and safely as a human driver, while enabling the Volkswagen Group and other manufacturers to accelerate the rollout of automated driving worldwide.

The jointly developed software stack is designed to handle the full spectrum of cognitive tasks, including recognizing and interpreting traffic situations, making decisions, and executing precise driving actions. Early versions have already been deployed in test fleets, where they are being refined daily with vast amounts of driving data collected from real-world conditions. This continuous training process will culminate in a production-ready stack for global deployment starting in mid-2026.

Peter Bosch, CEO of CARIAD, emphasized the broader significance of the alliance: “We’re proving that the German automotive industry can master the key technologies of AI and automated driving. This is about safeguarding Europe’s digital sovereignty and making advanced driver assistance accessible to millions of people, freeing up valuable time in the car while improving safety.”

Mathias Pillin, CTO of Bosch Mobility, added: “Reliable, scalable automated driving demands both data and AI. By working as equal partners and challenging conventional mindsets, we are creating a solution that will set new industry benchmarks.”

From Object Recognition to End-to-End AI Architecture
While AI has already been used in the alliance’s perception systems, the new approach extends it across the entire software chain – including sensor fusion from cameras and radars, decision-making, and automated control of the powertrain, steering, and brakes. The aim is an end-to-end AI architecture where each module benefits from continual learning, scalability, and enhanced intelligence.

Inspired by generative AI models that understand complex semantics, the new system can analyze intricate urban traffic environments, predict the behavior of multiple road users, and adapt accordingly. Looking ahead, the architecture will be ready to incorporate multimodal AI methods, such as vision-language-action (VLA) systems, which combine visual and linguistic data to simulate human-like reasoning and responses. These could further improve risk detection and decision-making in complex or hidden scenarios.

Full Control Over Technology and IP
All technology elements are being developed with proprietary source code and intellectual property, giving Bosch and CARIAD complete technical oversight. This approach ensures strict standards for safety, transparency, cybersecurity, and data protection, while allowing rapid innovation through agile code optimization.

Global Test Fleet Driving Continuous Improvement
The software is already being tested in vehicles such as the Volkswagen ID.Buzz and Audi Q8, with hundreds more test cars joining this year. Each is equipped with advanced sensors to capture rare “corner case” scenarios and other critical data. Software updates are pushed to test vehicles multiple times a day, enabling rapid iteration. Real-world trials are underway across Europe, Japan, and the United States, ensuring the solution is adaptable to multiple regulatory and traffic environments.

Once production-ready, Bosch will offer this scalable automated driving stack not only to the Volkswagen Group – where it will be integrated into the new architecture for software-defined vehicles – but also to other manufacturers, supporting widespread adoption of safe and intelligent driving systems.

Mobility is the largest Bosch Group business sector. It generated sales of 55.8 billion euros in 2024, and thus contributed around 62 percent of total sales. This makes the Bosch Group one of the leading mobility suppliers. Bosch Mobility pursues a vision of mobility that is safe, sustainable, and exciting. For its customers, the outcome is integrated mobility solutions. The business sector’s main areas of activity are electrification, software and services, semiconductors and sensors, vehicle computers, advanced driver assistance systems, systems for vehicle dynamics control, repair-shop concepts, as well as technology and services for the automotive aftermarket and fleets. Bosch is synonymous with important automotive innovations, such as electronic engine management, the ESP anti-skid system, and common-rail diesel technology.

The Bosch Group is a leading global supplier of technology and services. It employs roughly 418,000 associates worldwide (as of December 31, 2024). The company generated sales of 90.3 billion euros in 2024. Its operations are divided into four business sectors: Mobility, Industrial Technology, Consumer Goods, and Energy and Building Technology. With its business activities, the company aims to use technology to help shape universal trends such as automation, electrification, digitalization, connectivity, and an orientation to sustainability. In this context, Bosch’s broad diversification across regions and industries strengthens its innovativeness and robustness. Bosch uses its proven expertise in sensor technology, software, and services to offer customers cross-domain solutions from a single source. It also applies its expertise in connectivity and artificial intelligence in order to develop and manufacture user-friendly, sustainable products. With technology that is “Invented for life,” Bosch wants to help improve quality of life and conserve natural resources. The Bosch Group comprises Robert Bosch GmbH and its roughly 490 subsidiary and regional companies in over 60 countries. Including sales and service partners, Bosch’s global manufacturing, engineering, and sales network covers nearly every country in the world. Bosch’s innovative strength is key to the company’s further development. At 136 locations across the globe, Bosch employs some 87,000 associates in research and development.

Additional information is available online at www.bosch.com, www.bosch-press.com.

Media Contact:

Andreas Haupt
Phone: +49 711 811 13104
E-mail: andreas.haupt@de.bosch.com

SOURCE Bosch