Investment of $1 Billion in Toyota’s Artificial Intelligence

On Friday, November 6, 2015, Toyota Motor Corp’s President AkioToyoda delivered a speech during a press conference regarding the automaker’s developments inartificial intelligence. Toyota will be investing $1 billion into a research company that it is establishing in Silicon Valley. The investment is geared towards the development of robotics and artificial intelligence. It is a symbol of Toyota’s ambition to be the leaders in developing futuristic cars which will autonomously drive themselves. It also underlines their determination to develop applications of the technology to a variety of other areas of daily life.

President Akio Toyoda stated on Friday that the automaker will commence operations as of January2016. 200 Toyota employees will be employed and working near Stanford University at a Silicon Valley facility. Another facility will also be set up in Cambridge, near Massachusetts Institute of Technology (MIT).

The billion dollar investment will be spread over a period of five years. The investment follows the automaker’s earlier announcement of a $50 million investment in artificial intelligence research at MIT and Stanford.

Toyota stated that it is committed to development in artificial intelligence which extends beyond autonomous driving. Although autonomous driving currently is being offered by some automakers, it is being promised by almost all of them. According to Toyota, the technology’s development is indicating a new industry for everyday use. This, in turn, will aid in delivering a better, safer lifestyle overall.

The automaker has exhibited a robot (much like R2-D2) which has been designed to assist the ill and the elderly, as well as wheelchair-bound individuals. These robots help by picking up and carrying objects. Toyota has also exhibited entertainment robots that are human-shaped, which have conversational capabilities as well as the ability to play instruments. Toyota already makes use of highly sophisticated computers and robotic arms in its in auto production. Uses include screwing in parts as well as doing paint jobs. This is one of the many factors which make the automaker the world’s top-most auto manufacturer.

Recently, at a Tokyo hotel, Toyoda appeared with Gill Pratt (who is a high-profile robotics expert) who will be overseeing Toyota Research Institute Inc. This was done to drive home one major point: that Toyota’s long term vision has to do with many more than just cars. Prior to this position, Pratt was employed at the US military’s Defense Advanced Research Projects Agency as a program manager. When Toyota set up its Artificial Intelligence research facilities at MIT and Stanford, Pratt joined as a technical adviser.

Pratt reaffirmed the company’s position on AI by stating that the automaker’s focus is on the improvement of the quality of life of the elderly in their homes by using robotics, using AI to make cars free of accidents, and finally, using this technology to enable anyone to drive a car, regardless of ability. Pratt’s personal experiences have motivated him to commit himself to the development of the field of robotics and related technology. As a child, he witnessed a child on a bike killed by a car collision. He also had the unfortunate task of telling his elderly father that he could no longer drive at the age of 83 and, a year later, he had to send his father to a nursing home. These incidents drive him.

Pratt grew up inspired by Japanese robot animation. He dreamt of building such robots one day, and he states Toyota’s commitment to social good as the reason for choosing a job with the automaker over other jobs. Pratt is of the opinion that it will take some time to create a car that is as smart as a human being, but the competition had already begun. As yet, no one was significantly ahead.

According to Toyota, wooing talent is crucial, because the competition to develop autonomous driving is no longer limited to car manufacturers but also includes tech experts such as Google, Uber, and Apple. Therefore, the new company will be hiring engineers and researchers.

Although Toyota has gone through tough times in its recent past, including massive recalls as well as the 2011 tsunami that occurred in northeastern Japan, today it has the cash to invest in its future ventures. Toyota’s profit forecast for the fiscal year up to March 2016 has been kept unchanged at 2.25 trillion yen amid a rise in profit due to cost cuts and a weak yen. This year, the manufacturers of the Camry sedan and the Prius hybrid are on their way to selling an approximate 10 million vehicles worldwide.

Toyoda states that he and Pratt share a vision, and this is why he is looking forward to working with Pratt.