Mercedes-Benz is introducing PLM.AI, an artificial intelligence-based Product Lifecycle Management system designed to connect vehicle development, procurement, production, sales and after-sales operations. The company expects the new digital platform to reduce development time by up to 30%, with the overall development cycle for new vehicles being shortened by around 17 months.
The system will establish a common digital framework for product data and processes across the vehicle lifecycle, helping engineering teams access information, assess technical decisions and identify potential issues earlier. Mercedes-Benz expects efficiency improvements of up to 50% in selected engineering processes.
The company is investing around €500 million in the transformation programme. The aim is to improve coordination between teams, accelerate the development of new technologies and bring vehicles to series production sooner, while maintaining existing standards for quality and safety.
“ With PLM.AI, we are creating the digital backbone for the future of product development at Mercedes-Benz and bringing new technologies to series maturity up to 30 percent faster,” said Jörg Burzer, Member of the Board of Management of Mercedes-Benz Group AG and Chief Technology Officer for Development and Procurement. He added that the platform would connect vehicle development, production and customer experience while maintaining the company’s quality and safety standards.
Artificial intelligence is already used at Mercedes-Benz for tasks such as material cost optimisation, certification and homologation, fault detection and software development. PLM.AI will extend these applications by connecting data and AI tools across different development stages through standardised data models.
The platform will help engineers assess the impact of design changes across areas including cost, crash performance, hardware and software functions, and manufacturing. AI-based simulations could also reduce the need for physical testing by up to half over time, allowing teams to validate decisions earlier and use resources more efficiently. Responsibility for product decisions will remain with employees.
Mercedes-Benz is working with CONTACT Software and Siemens to develop and implement the system. CONTACT Software is providing the open core platform through its CONT CT Elements system, enabling the integration of product data, processes and applications. Siemens is contributing expertise in AI-enabled automotive design, simulation and digital validation, including digital twin technology. Mercedes-Benz will lead the transformation, define the system architecture and data standards, and oversee global implementation. The company will retain ownership and control of its data and the AI models developed and used on that basis.
PLM.AI is intended to become the foundation of a connected engineering environment across the company vehicle programmes, supporting faster development and more consistent use of product information throughout the vehicle lifecycle. CONTACT Software is a provider of open-standard software and a pioneer in open-source technology for product engineering and digital transformation. Its solutions help organisations manage projects, streamline processes and collaborate globally using virtual product models and digital twins. The CONTACT Elements platform offers open technology and integrated AI support to connect IT systems and the Internet of Things, enabling end-to-end business processes.
The company is part of Mercedes-Benz Group AG, which employs around 164,000 people worldwide. The company is responsible for the global Mercedes-Benz Cars and Mercedes-Benz Vans businesses. Ola Källenius is Chairman of the Board of Management of the company.
The company develops, manufactures and sells passenger cars and vans, along with related services. The company is also focused on electric mobility and vehicle software. Its passenger car portfolio includes Mercedes-Benz, Mercedes-AMG, Mercedes-Maybach and the G-Class.One of the world’s largest manufacturers of premium passenger cars, Mercedes-Benz AG sold more than 2.1 million passenger cars and vans in 2025. Its global production network comprises around 30 facilities across four continents.
Sustainability is central to the company’s strategy, with a focus on creating long-term value for customers, employees, investors, business partners and society. Mercedes-Benz considers the economic, environmental and social impact of its activities across the entire value chain. As an international company, Mercedes-Benz supports equal opportunities, diversity, openness and respect. These principles guide its approach to working, decision-making and communication.
