What We’re Reading
Britain says makers, not car owners liable for self-driving crashes (Reuters, November 7, 2023)
On Tuesday, King Charles announced that the British government would be moving forward with an Automated Vehicles Bill in which carmakers will be legally responsible for any autonomous vehicle crashes while the vehicle and technology is in testing and development. This move is welcomed by insurers as it provides clarity in liability for claims involving self-driving vehicles. The British government has stated, “While the vehicle is driving itself, a company rather than an individual will be responsible for the way it drives.”
The bill will establish an investigative process, improve the safety framework, and will also define the classifications for self-driving vehicles. Founder of Oxford-based AV software firm Oxa, Paul Newman, has said that the proposed framework would likely avoid a repeat of “Cruise’s situation” (see below) in California last month “because it clearly delineates responsibilities.”
GM’s latest problem may spell doom for major automotive trend (The Street, November 6, 2023)
As widely reported, the California Department of Motor Vehicles recently revoked Cruise’s license to operate robotaxis on California roadways due to ongoing safety concerns. Shortly thereafter, Cruise unilaterally halted all of its driverless operations nationwide.
In the aftermath of the shutdown, a New York Times report highlighted the impact of Cruise’s decision to halt operations on its surprisingly large staff, which is comprised of approximately 1.5 workers for every robotaxi in its fleet. According to sources familiar with the matter, these human operators actually intervene remotely to assist driverless operations once every 2.5 to five miles.
Professor Gary Marcus, an artificial intelligence expert, noted that the revelation of these numbers cast serious doubt on the viability of truly autonomous technology on roadways anytime in the near future. “If Cruise’s vehicles really need an intervention every few miles, and 1.5 external operators for every vehicle, they don’t seem to even be remotely close to what they have been alleging to the public,” Marcus wrote. “The whole self-driving cars industry is likely to be viewed in a few years as an epic fail, crushed by outliers and AI that could not reason adequately,” Marcus added.
In response to these critical allegations, Cruise’s CEO Kyle Vogt countered that its robotaxis are actually only remotely assisted 2% to 4% of the time, in “complex urban environments.” He added that many of these sessions are simply “quick confirmation requests that are resolved in seconds.”
Autonomous Vehicle Funding Stuck In Neutral (Crunchbase News, November 3, 2023)
Funding of autonomous vehicles has hit its lowest point since 2017, with autonomous driving startups having raised less than $4.5 billion so far in 2023. The last 12 months have been hard for autonomous vehicle development, with the startup Argo AI closing its doors last year, VW announcing its plans to cut 2,000 jobs from its Cariad automotive software development unit, and most recently with the announcements that both GM and Ford are suspending autonomous vehicle development.
The decline in funds raised stems from a sharp decline in the number of deals completed in the sector, seeing its lowest number since 2017. Funding reached its highest peak in 2021, with the industry receiving over $12 billion with 264 deals, led by Cruise alone raising $2.75 billion.
However, despite investors overall pulling back on funding and development of autonomous vehicles, Pittsburgh-based commercial trucking startup Stack AV has hired over 150 people and has reportedly raised over $1 billion in September.
After the closing of Argo AI last year, it seems that most big automakers are trying to develop its autonomous vehicle technology in-house, rather than investing in startups.