AVL & Mircosoft: How AI is reshaping the future of software-defined vehicles

Graz, March 25, 2025 - AVL and Microsoft have been working together  for almost two years on the transformation of vehicle development. The partners are relying on cloud-based software solutions and the integration of AI-based agents. The results support the efforts to get vehicles ready for series production without hardware prototypes within just 24 months. End-to-end tool chains for the synchronization of system- and software-oriented development processes play a key role here.  

Engineering knowledge is codified and used to generate complete vehicle designs - a paradigm shift that accelerates and optimizes the entire development process. Instead of looking at vehicles in isolated development phases, the entire system is parameterized and mapped virtually. This leads to more efficient processes, shorter development times and higher quality for customers.

As part of the collaboration between AVL and Microsoft, the first SaaS solutions are available on the Azure Marketplace. A significant milestone is the AVL DevOps Pilot™, which sets new standards in virtual vehicle development. The automation of system test pipelines with Microsoft Azure Cloud and artificial intelligence (Azure OpenAI) significantly accelerates software development for software-defined vehicles. At the same time, an advanced data analytics solution in the Azure Cloud enables efficient data management and seamless traceability - from the virtual test bench to real road use.

"The combination of AVL's in-depth engineering expertise and Microsoft's leading cloud and AI technology enables completely new approaches in vehicle development. Scalable, simulation-driven methods not only optimize resource consumption, but also accelerate the market launch of innovative mobility solutions," explains Jens Poggenburg - Executive Vice President of AVL.

 "Together with Microsoft, we are setting new standards for sustainable, safe and future-oriented vehicle development. We look forward to deepening our collaboration in the coming years and realizing new successes," says Verena Kreuzer, Partnership Manager at AVL.

AVL and Microsoft want to work together to drive innovation and sustainability in vehicle development. While AVL contributes its many years of expertise in engineering, methodology, verification and validation, Microsoft complements the partnership with its leading cloud and AI technology. Together, they are driving the digital transformation of mobility to enable safer, greener and more efficient vehicles.

"AVL stands for efficient and sustainable mobility and is fundamentally changing how vehicles are developed and used with its innovative strength. We are proud to support the company with our AI technology in order to jointly drive positive change in the automotive industry," says Hermann Erlach, General Manager Microsoft Austria.

AVL was chosen as the ideal partner for Microsoft due to its extensive know-how, global network and ability to integrate complex development processes. The successful collaboration sets new standards in the industry and is helping to shape the mobility of the future.