Mercedes-Benz digitalises global product development with PLM.AI and accelerates processes by up to 30%,

Processes are accelerated, development time is shortened

PLM.AI digitalises the entire global product development.

October 16, 2026 – Paradigm shift in product development: With PLM.AI (Product Lifecycle Management), Mercedes-Benz is creating an AI-native digital backbone. It establishes an end-to-end, intelligent knowledge base that connects development, procurement, production, sales and after-sales.

As a result, new products and technologies can be brought to series maturity faster, more efficiently and more sustainably in the future. This can reduce development time by up to 30 percent, with efficiency gains of up to 50 percent expected in individual engineering processes.

Reduced development time does not come from making compromises. It comes from helping teams make better decisions earlier by connecting the right people with the right information at the right time. This reduces complexity, accelerates innovation and enables new technologies to reach customers sooner. At the same time, the standards that define every Mercedes-Benz remain unchanged. The commitment to quality and safety is as high as ever. A Mercedes Benz developed with PLM.AI will still be unmistakably a Mercedes-Benz – defined by the same craftsmanship, engineering excellence and desirability, simply brought to customers faster.

Jörg Burzer.

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. This will make us faster, more connected and more capable of learning. At the same time, we are creating a foundation that connects vehicle development, production and customer experience in a new dimension. Our high standards for quality and safety remain unchanged.

Jörg Burzer
Member of the Board of Management of Mercedes-Benz Group AG. Chief Technology Officer, Development & Procurement
Jörg Burzer.

100-percent AI-ready: PLM data is made usable for AI applications

Artificial intelligence is already firmly embedded in product development at Mercedes-Benz. AI agents support a wide range of tasks, from optimising material costs or certification and homologation processes to detecting and resolving faults or supporting software development. While these AI agents are currently used primarily within individual process steps, PLM.AI takes AI to the next level: Mercedes-Benz is connecting different applications across development processes, enabled by standardised data models and the end-to-end integration of development data. This creates a seamless digital thread built on consistent data and clear standards. Information becomes available in real time, coordination is simplified and innovations can be implemented faster. With an investment of around half a billion euros, Mercedes-Benz is paving the way for a new generation of product development that is more connected, data-driven and intelligent than ever before. This allows a more holistic assessment of complex interdependencies and faster translation of new technologies into customer benefits.

PLM.AI helps employees analyse complex relationships across functions, intelligently connect relevant information and identify trade-offs at an early stage. AI-powered simulations and development processes enable more targeted use of physical testing, which could be reduced by half over time. This allows more efficient use of resources and earlier validation of development decisions. Meanwhile, the focus remains on people, and the responsibility for product decisions remains with the teams.

One example is weight optimisation. Changes to individual components affect aspects such as costs, crash behaviour, hardware and software functions as well as production processes. Specialised AI agents will be able to analyse these interdependencies simultaneously. Development teams thus receive an overall picture faster, enabling them to evaluate solutions that account for safety, quality and commercial considerations. New potential is also emerging in after-sales through the linking of product, service and operating data.

Two strong technology partners for PLM.AI

Mercedes-Benz is collaborating with two strategic technology partners for PLM.AI, namely CONTACT Software and Siemens. Together, they are contributing significantly to modernising product development and implementing the PLM.AI architecture.

CONTACT Software Close

CONTACT Software provides the open PLM core layer with CONTACT Elements. This gives Mercedes Benz the modular and scalable foundation needed to integrate product data, processes and applications along the product development process and to flexibly incorporate future AI technologies.

Siemens Close

Siemens supports Mercedes-Benz with comprehensive solutions and know-how in the areas of AI-enabled automotive design, simulation and digital validation for the digital twin. This enables key engineering domains to be interconnected and accelerated through the shared data and process foundation of PLM.AI.

Mercedes-Benz leads the end-to-end transformation and defines the target vision, target architecture, data models and governance of PLM.AI. The company also manages global implementation within an agile transformation programme and continuously develops the new digital backbone. PLM.AI will form the cornerstone of Mercedes-Benz’s engineering ecosystem – as the basis for fully integrated, data-driven and AI-supported development across all vehicle programmes. At the same time, Mercedes-Benz retains full ownership and control of its data as well as the AI models developed and used on its basis.

AI visual.

Artificial intelligence at Mercedes-Benz.

At Mercedes-Benz, we see artificial intelligence as a key technology and a driver of innovation. We apply AI across the entire value chain.