The automotive industry stands at a defining crossroads. Global trade dynamics, labor constraints, and supply chain disruptions continue to test resilience, while rapid technological advances in vehicle-to-everything (V2X) connectivity and autonomous driving are reshaping the competitive landscape. For manufacturers and leaders alike, this moment calls for both strategic foresight and the courage to embrace transformation. 

Against this backdrop, we sat down with two distinguished leaders to explore how the sector can chart its course through disruption and opportunity. Pranay Agrawal, CEO of Fractal, and Jan Carlson, Chairman of the Board at Ericsson and Autoliv and Board Member at Volvo, share their perspectives on navigating uncertainty, leveraging the AI revolution, and reimagining the future of mobility. Their insights illuminate the pathways forward for an industry on the brink of reinvention. 

With Autoliv and Volvo, what do you see as the three most exciting opportunities and the three most pressing challenges in the automotive sector today? 

Jan:
I’ve been in the automotive industry for almost 30 years. Today, some markets face stagnation while others, particularly China, are experiencing major expansion, especially around electrification and new technology. 

At Autoliv, our focus is to save lives. A key opportunity is global light vehicle production, which remains critical for the industry. We are also working to improve safety for people outside the car, such as cyclists and pedestrians. 

The challenges are equally clear: global uncertainty, tariffs, and geopolitical pressures, along with the rapid expansion of China’s automotive sector, which continues to put pressure on the global supply base.

Pranay:
When I look at the future of mobility, some of the most exciting opportunities lie outside the traditional strongholds of the US and Western Europe. In these rapidly growing regions, we will see a natural shift toward smaller, more efficient vehicles, and electrification will no longer be optional; it will become central to how these markets evolve.  

Another area that inspires me deeply is safety. Every year, 1.2 million people lose their lives in automotive accidents worldwide. Beyond the profound human tragedy, this translates into an economic loss of 2 to 6 percent of GDP in many countries. In the US alone, that means 40,000 lives lost and more than $340 billion in costs annually. With the advances in autonomous driving and AI-powered safety systems, we now have the technology to address this crisis directly. This is not just an opportunity for business growth—it is a moral imperative. 

I also see enormous potential in productivity. Today, the average American spends nearly an hour commuting every day. If autonomous driving can reduce that burden, we give people back something priceless: time. Time to work, to rest, to connect with loved ones, time that has tangible value for individuals, businesses, and society at large. 

And then there is energy. Road transportation is one of the world’s largest consumers of energy. With AI, we can improve fuel efficiency by 10 to 15 percent, a shift that is both economically smart and environmentally essential. 

Of course, realizing these opportunities will not be simple. Tariffs, labor shortages, and the complexities of global supply chains are persistent headwinds. What these demands of us, as leaders, are resilience, strategic clarity, and the courage to invest boldly in technologies that will shape the next era of mobility. 

How are emerging technologies such as AI transforming the safety landscape? 

Jan:
AI will influence our lives going forward, and we need to get used to it. At Autoliv, our mission is to save lives, and AI is influencing that work in several ways. 

On the product side, AI helps us mitigate the effects of kinetic energy in crashes, monitor cabin conditions, and utilize simulations and virtual testing more effectively. 

In product development, generative AI accelerates design, turns product data into insights, and automates design iterations. 

In R&D, AI improves accuracy and reduces the number of iterations. 

In manufacturing, AI drives predictive maintenance, reduces downtime, and improves quality. Smart manufacturing and digital twins all create opportunities to make production more efficient. 

Pranay:
If we want to capture the next wave of opportunities in automotive, innovation must be at the core of our strategy. Nowhere is this more evident than in China, where new vehicles are moving from concept to market in just 18 months, far faster than the traditional five-year cycle in many established companies. With AI, we have the chance to compress this timeline dramatically, bringing agility and responsiveness to an industry that has long operated on extended development horizons. 

From a safety perspective, AI is equally transformative. Advanced simulations powered by AI enable us to test and refine scenarios at a scale previously unimaginable. Coupled with autonomous and semi-autonomous technologies, these capabilities can help prevent accidents before they happen, saving lives while also reducing the enormous economic burden of collisions worldwide. 

The potential extends deeply into manufacturing as well. In other industries, AI has already delivered productivity improvements of 7 to 10 percent. Translating those gains into the automotive sector could be nothing short of revolutionary, particularly in emerging markets where efficiency is critical to competitiveness. 

Ultimately, AI is not just another tool in the toolkit; it is a force multiplier. It enables faster product releases, stronger safety outcomes, and more efficient supply chains. Its impact touches every dimension of the business. For leaders across the automotive value chain, the imperative is clear: embracing AI is no longer optional—it is the pathway to resilience and long-term growth. 

Ericsson has been a pioneer in AI. As the company doubles down on AI-driven and intent-based networks, what do you see as the most transformative applications? 

Jan:
We’ve been working with AI for many years, and at Ericsson we now have tens of thousands of people engaged in it. Generative AI plays a major role as we develop intent-driven autonomous networks. These networks translate business intent directly into actions and instructions. 

We’ve already applied AI in diagnostics and troubleshooting. With billions of connected devices, it’s simply not possible for humans to manage performance manually. AI is essential to maintaining efficiency and reliability at scale. 

Pranay:
Many automotive advancements will be driven by improvements in telecommunications connectivity. Telecom will play a critical role as cars become more autonomous and as edge computing enables vehicles to connect and share data for road safety.  

Subscriber growth in affluent markets is saturated. The real opportunity is usage, applications ranging from streaming to connected cars, remote surgeries, and holographic communication. 

The challenge for telecom is to support this demand by optimizing capacity. It’s not enough to just add more; AI must optimize networks so consumption can scale cost-effectively. 

Jan:
Exactly. Many use cases, like self-driving cars, depend on reliable, low-latency connectivity. Fiber won’t always be practical, so mobile connectivity with the lowest latency is essential. 

For Ericsson, that means bringing computation closer to the edge. With AI embedded, edge computing becomes even more important, and this is where we’re focusing. 

Pranay:
Are you already seeing AI in areas like virtual networking or network slicing? 

Jan:
Yes, we are seeing this happening, and we’re working on how to expand it. Low latency remains one of the most important factors in designing the networks of the future. 

You’ve both led companies through transformative periods. How do you foster a culture that embraces change while implementing new technologies? 

Jan:
There are no shortcuts when it comes to culture. It takes time, and you have to embrace it. 

As a leader, you must be at the forefront of change, stand firm in your values, and create an environment where people feel free to speak up. Change is not always comfortable, but you need to stand behind it. 

You also have to understand the organization’s perspective, whether it’s in an upturn or downturn, which affects how change is received. 

Throughout my career, I've experienced this: change is always happening, and it is happening faster. 

Pranay:
At the heart of transformation lies purpose. Business leaders already know their objectives and value drivers; the challenge is connecting emerging technologies to those outcomes. When we frame AI and design in the language of business impact, whether it’s growth, efficiency, safety, or customer experience, the relevance becomes immediately apparent. 

Too often, today’s conversation is dominated by technology for its own sake. My approach has always been to start with strategy and value. We must first ask: What do we want to create? What problems are we solving for our customers, our employees, and society at large? Once that purpose is defined, we can then work backward to see how AI and design can accelerate the journey.  

Equally important is leadership from the top. Actual speed and scale come when adoption is not left to isolated teams or pilots, but when it is championed by leadership and embedded directly into business strategy. That is how organizations move from experimentation to impact—how they translate innovation into resilience, and vision into measurable value. 

What advice would you offer leaders starting their AI journey? 

Pranay:
Everything must connect back to business strategy. AI is not just about growth; it’s also about survival. Leaders need to determine their priorities and how they will utilize technology to create value. 

From there, cascade the vision across the organization, from product development to customer engagement and decision-making. All of these technologies are tools to drive broader objectives. 

Training and education are also critical, especially at the leadership level. Leaders need a deeper understanding of what the technology does. Fluency removes fear of the unknown. 

Jan:
I agree with what Pranay said. My advice is simple: act now. You cannot be fast enough. You may not know the whole journey, but you need clarity on today and the flexibility to adjust.

With AI, especially agentic AI, this is not just automation, ; it is orchestration. 

Governance must start at the top but be embraced across the organization. Trust is critical. Leaders must ensure values are not lost during transformation. 

Finally, upskill and empower your people. Technology is the enabler, but governance, trust, and people are what make change succeed.  

Conclusion 

Our conversation with Pranay Agrawal and Jan Carlson underscored a powerful truth: the future of automotive innovation will not be defined by technology alone, but by the vision and responsibility with which it is applied. Their insights point to a sector where AI, digital twins, and smart connectivity transform manufacturing, safety, and efficiency, yet are always anchored in cultures of trust, ethics, and accountability. 

For business leaders, the message is clear. The path forward lies in pairing bold technological ambition with strategic stewardship, ensuring that progress serves both industry and society. In this balance of innovation and values-based leadership, the automotive sector has the opportunity not only to reinvent mobility but to redefine its role in shaping a safer, more sustainable future.