Verified
Mercedes-Benz Group
Piloting- Automaker
- 164,120 employees
- Copilot, Direct Chat and n8n
- ~50% use AI weekly (Mar 2026)
- No AI return reported
Mercedes-Benz deploys AI mostly through bought platforms run by its central IT: Microsoft 365 Copilot for administrative and production staff worldwide and the in-house Direct Chat app on OpenAI and Google Gemini models. Employees build AI workflows on n8n, and engineers use Cognition's Devin and Windsurf. About half of Mercedes-Benz employees used AI each week in Mar 2026, and IT reports to board member Britta Seeger. Mercedes-Benz has credited no business return to AI: PLM.AI's up to 30% shorter development time is a target.
group.mercedes-benz.comTheir approach to AI
- The platform
- Mercedes-Benz combines tools it built, such as the Direct Chat app (late 2023) and the MO360 production chatbots, with bought platforms: Microsoft 365 Copilot group-wide from Mar 2026 and n8n for AI workflows from May 2026.
- The models
- Mercedes-Benz's Direct Chat runs OpenAI models through Microsoft's Azure OpenAI Service in European data centers and added Google Gemini in Aug 2025; engineers use Cognition's Devin and Windsurf (Apr 2026).
- The reach
- Mercedes-Benz said about 50% of employees used AI each week in Mar 2026, more than double a year earlier, and more than 10,000 used Direct Chat daily as power users (Oct 2025).
- The catch
- Mercedes-Benz has published no business return it credits to AI. PLM.AI's up to 30% shorter development time is a target, and Mercedes-Benz does not credit AI with the more than €3.5 billion that Next Level Performance contributed in 2025.
Snapshot
- Employees
- 164,120
- Dec 31, 2025, down from 175,264 a year earlier (2025 Annual Report)
- Technology budget
- Not disclosed
- Group R&D expenditure €9.7B in 2025; PLM.AI investment about €0.5B (Oct 2026)
- AI/ML headcount
- Not disclosedest.
- Cognition's tools scaled across 10,000 engineers, per a Jul 2026 RAISE Summit session listing
- Who owns AI
- Britta Seeger, board member
- People & Enterprise Tech took IT from the CEO by Jun 2026; CIO Jonas von Malottki since Oct 1, 2026
- Platform
- Copilot, Direct Chat, n8n
- Direct Chat built in late 2023; Copilot group-wide from Mar 2026; n8n from May 2026
- Models
- OpenAI, Google Gemini
- OpenAI through Azure OpenAI Service; Cognition's Devin and Windsurf for engineers
- Reach
- ~50% weekly AI users
- Mar 2026, more than double a year earlier
Key findings
Mercedes-Benz said on Mar 3, 2026 that about 50% of its employees used AI each week, more than double a year earlier, as it rolled out Microsoft 365 Copilot to all administrative and production-related staff worldwide. Then-CIO Katrin Lehmann put weekly use among office staff at about 60% in May 2026, with a target of 70% by the end of 2026.
Mercedes-Benz has credited no business return to AI. The more than €3.5 billion that Next Level Performance contributed to Mercedes-Benz Cars' earnings before interest and taxes in 2025 came from savings on material, production, and selling, general and administrative costs, which Mercedes-Benz does not attribute to AI. Mercedes-Benz's AI figures are targets or speedups, such as up to 30% shorter development time from PLM.AI (Oct 2026).
Mercedes-Benz moved IT out of CEO Ola Källenius's remit into Britta Seeger's People & Enterprise Tech division by Jun 2026. CIO Katrin Lehmann, who led the Copilot, n8n and Direct Chat rollouts, left at the end of Aug 2026, and Jonas von Malottki, previously CIO of Mitsubishi Fuso, took over on Oct 1, 2026.
Mercedes-Benz is investing around half a billion euros in PLM.AI, an AI-native product lifecycle system built with CONTACT Software and Siemens (Oct 16, 2026). Mercedes-Benz says PLM.AI can cut development time by up to 30% and halve physical testing over time.
Mercedes-Benz's production AI runs inside MO360, its digital production system. In-house chatbots answer staff questions from production databases, AI agents analyze quality deviations, and Celonis process intelligence watches order-to-delivery and quality (Mar 2025 to Nov 2025). Apptronik's Apollo humanoid robots remain in pilots.
Where Mercedes-Benz sits
- Stage
- Piloting
Mercedes-Benz Group has reported no business return it credits to AI in the 18 months since May 2025. PLM.AI's up to 30% shorter development time (Oct 2026) is a target. Cognition's tools are credited with development cycles up to 25% faster (Apr 2026), a speedup with no cost or headcount figure. The more than €3.5 billion contributed in 2025 by the Next Level Performance program (Feb 2026) is not credited to AI. Mercedes-Benz meets the Piloting rung through a company-wide rollout with a user figure. Mercedes-Benz's Mar 3, 2026 release on the group-wide Microsoft 365 Copilot rollout said about 50% of employees used AI each week, more than double a year earlier. Then-CIO Katrin Lehmann put weekly use among office staff at about 60% in May 2026. Board member Britta Seeger owns IT and AI as head of People & Enterprise Tech, and Jonas von Malottki has been CIO since Oct 1, 2026. Mercedes-Benz stays off Scaling until it credits returns to AI in several functions or reports a firm-level AI figure.
How the stages are defined - Ownership
- Board member Britta Seeger (People & Enterprise Tech); CIO Jonas von Malottki since Oct 2026
- Platform
- Hybrid: Direct Chat and MO360 AI tools built; Copilot, n8n and Devin bought
- Models
- OpenAI via Azure, Google Gemini, Microsoft 365 Copilot, Cognition
- Hosting
- Microsoft Azure in European data centers and Microsoft 365, Google Cloud, n8n self-hosted on Mercedes-Benz infrastructure, Devin as a cloud agent
- Reach
- About 50% of employees use AI weekly (Mar 2026)
How they deploy
AI First across the value chain
Mercedes-Benz calls its approach an AI First strategy: building AI into products, processes and decisions from the start and rethinking processes around it, from development and production to sales and service. Mercedes-Benz describes an AI Pyramid of employee roles on a foundation of platforms, governance and security. The roles are Takers who use AI tools, Builders who build applications with measurable business value, Shapers who find new uses and Leaders who set priorities. Mercedes-Benz says it invests where AI delivers measurable value. n8n's May 2026 account of the same model names the layers Takers, Makers and Builders.
One workplace platform, plus specialist tools
Mercedes-Benz said in Mar 2026 that standardizing on Microsoft 365 Copilot across the group reduces complexity and operating costs and gives employees one learning platform. Mercedes-Benz said Copilot also creates a central place to deploy custom-built AI agents for administrative and specialist processes. Mercedes-Benz adds specialist tools on top: its own Direct Chat app, n8n for workflows built by employees, Cognition's Devin and Windsurf for software engineers, and Celonis process intelligence in production and logistics.
Control over data and models
Mercedes-Benz chose n8n partly because n8n can be self-hosted and is cloud-agnostic. Mercedes-Benz says that choice strengthens its control over data and workflows and supports Europe's AI industry (May 2026). Mercedes-Benz runs Direct Chat in European data centers through Microsoft's Azure OpenAI Service and says it keeps full ownership and control of the data and AI models built on PLM.AI (Oct 2026).
AI in the car is a separate program
Mercedes-Benz's vehicle AI runs on MB.OS, its in-house car operating system. Mercedes-Benz built assisted driving with NVIDIA and, in China, Momenta. The MBUX Virtual Assistant runs on Google Cloud's Automotive AI Agent with Gemini, and cars in China use ByteDance's Doubao. An over-the-air update added ChatGPT technology to voice control in more than 900,000 vehicles. Mercedes-Benz said on Oct 28, 2026 that it will expand its NVIDIA partnership to develop the next generation of driver-assistance and automated-driving systems. The in-car systems share partners with Mercedes-Benz's internal AI but are separate from how Mercedes-Benz runs its operations.
AI inside a cost program
Mercedes-Benz frames AI as one lever in a cost and productivity drive. CFO Harald Wilhelm listed extensive use of AI among the fixed-cost measures in Feb 2026, and Mercedes-Benz named AI among the levers for cutting production cost per unit by 10% from 2027 against 2024. Wilhelm said on Oct 28, 2026 that Mercedes-Benz is driving efficiencies through the broad use of agentic AI. Then-CIO Katrin Lehmann said in May 2026 that job cuts should be viewed separately from AI.
- Deployment model
- Mercedes-Benz runs AI as central platforms with delivery in the divisions. The group IT organization sits in Britta Seeger's People & Enterprise Tech division under CIO Jonas von Malottki. Group IT provides Copilot, Direct Chat and n8n through a company-wide AI Competence Centre, which supplies platforms, frameworks and tools and advises and trains business areas. A Global Cyber Security, Data and AI unit created in 2025 bundles cybersecurity, the chief data officer role and the technical management of the AI organization. The divisions build their own applications: production runs the MO360 AI Factory from the Mercedes-Benz Digital Factory Campus in Berlin-Marienfelde, development owns PLM.AI, and sales runs AI in pricing and customer service. More than 1,500 employees built AI and automation ideas at a company-wide hackathon in 2026, and the strongest are being put into production on n8n.
- Model providers
- Mercedes-Benz's Direct Chat was built in late 2023 on OpenAI's ChatGPT technology through Microsoft's Azure OpenAI Service. Direct Chat added Google Gemini models in Aug 2025 so employees can pick a model, and offers DALL-E image generation. Mercedes-Benz uses Microsoft 365 Copilot as its workplace assistant, in selected areas since 2024 and group-wide from Mar 2026. Software engineers use Cognition's Devin, a cloud-based autonomous coding agent, Windsurf as an AI coding environment and Devin for Terminal (Apr 2026). Customer-facing tools use Google Cloud's Vertex AI and Gemini models (Apr 2024). Mercedes-Benz has not said which models run behind its MO360 chatbots or PLM.AI agents.
- Data and infrastructure
- Mercedes-Benz connected its roughly 30 passenger car plants to Microsoft Azure through the MO360 Data Platform in Oct 2022, using Azure Data Lake, Azure Databricks and Power BI to give production staff real-time data. Mercedes-Benz hosts Direct Chat in European data centers on Azure and says employee inputs are processed anonymously and not used to train models. Customer data sits in Google Cloud's BigQuery, and Google Cloud is the backbone of Mercedes-Benz's internal development and test platform for driver assistance (Apr 2024). n8n runs on Mercedes-Benz's own infrastructure. Then-CIO Katrin Lehmann said in May 2026 that invoicing alone existed 38 times across the company, and Mercedes-Benz is removing such legacy systems as it standardizes.
Platforms and internal tools
Mercedes-Benz Direct ChatLate 2023
Mercedes-Benz Direct Chat is an internal web app for writing, summarizing and answering questions, in English and German, with Mercedes-specific knowledge agents that draw on internal systems. Mercedes-Benz added Google Gemini and DALL-E image tools in Aug 2025 and calls Direct Chat the central information platform for internal content.
- Users
- More than 10,000 daily power users (Oct 2025)
- Models
- OpenAI through Azure OpenAI Service; Google Gemini
Microsoft 365 CopilotSelected areas from 2024; group-wide from Mar 2026
Mercedes-Benz is giving Microsoft 365 Copilot to all employees in administrative and production-related areas worldwide and uses Copilot as the platform for custom AI agents. Mercedes-Benz calls the rollout one of the largest AI deployments in European industry. AI copilots already support procurement, development, workshops and the production network, according to the Mar 2026 release.
- Users
- About 50% of employees use AI weekly (Mar 2026); 90,000 office workstations, per Stuttgarter Zeitung (Jun 2026)
- Models
- Microsoft 365 Copilot
n8n workflow platformMay 2026
Mercedes-Benz is rolling out n8n, a German low-code automation platform, so employees can build AI-powered workflows and agents into operational processes. The rollout covers development, production, sales, financial services, HR and IT. n8n says workflows already run in customer support, sales and IT operations. Mercedes-Benz chose n8n partly for its self-hosted, cloud-agnostic deployment.
MO360 AI FactoryMar 2025
The MO360 AI Factory brings AI into MO360, Mercedes-Benz's digital production system. The MO360 AI Factory includes the in-house Digital Factory Chatbot Ecosystem, which answers staff questions on machine maintenance and manufacturing methods from production databases in several languages. The AI Factory also includes the MO360LLM Suite and a virtual multi-agent system that analyzes data to find the causes of quality deviations.
MO360 Data PlatformOct 2022
The MO360 Data Platform connects Mercedes-Benz's roughly 30 passenger car plants to Microsoft Azure so teams can spot supply-chain bottlenecks, shift production resources and run AI and analytics across the network.
PLM.AIAnnounced Oct 2026
PLM.AI is a new AI-native product lifecycle management system that connects development, procurement, production, sales and after-sales on standard data models. Specialized AI agents can then weigh trade-offs such as weight, cost, crash behavior and production at once. Mercedes-Benz is investing around half a billion euros with CONTACT Software and Siemens and expects up to 30% shorter development time and up to 50% efficiency gains in individual engineering processes.
Devin and WindsurfApr 2026
Mercedes-Benz deploys Cognition's Devin, Windsurf and Devin for Terminal to engineering teams in the United States, Europe and Asia, in R&D and IT, for legacy modernization, cloud-native development and logistics software. Mercedes-Benz says the tools accelerate development cycles by up to 25%.
- Users
- Scaled across 10,000 engineers, per a Jul 2026 RAISE Summit session listing
- Models
- Cognition Devin and Windsurf
Celonis process intelligenceExpanded Nov 2025
Mercedes-Benz uses the Celonis platform alongside MO360 to unify production and logistics data. Celonis supplies AI copilots that forecast delivery timelines and sequencing, process intelligence on service parts logistics, and anomaly detection that flags quality deviations before they reach production.
- Users
- Hundreds of active users (Nov 2025)
Vendors and partners
MicrosoftOct 2022 for MO360 on Azure
Microsoft 365 Copilot, Azure OpenAI Service behind Direct Chat, Azure cloud for the MO360 Data Platform · Mercedes-Benz calls the Mar 2026 Copilot rollout part of its strategic partnership with Microsoft.
OpenAILate 2023
Models behind Direct Chat, through Microsoft's Azure OpenAI Service
Google CloudFeb 2023
Gemini models in Direct Chat; Vertex AI for sales, marketing and call centers; backbone of the driver-assistance development platform · Google Cloud said in Apr 2024 that its Dialogflow agents had handled more than 1 million calls in Mercedes-Benz's US call centers in about 6 months.
n8nMay 2026
Low-code AI workflow platform, self-hosted
CognitionApr 2026
Devin and Windsurf AI coding tools for engineers · Cognition says Devin cut a pilot modernization of more than 200,000 lines of COBOL from an estimated 8 months to 8 days.
CelonisExpanded Nov 2025
Process intelligence and AI copilots in production, logistics and after-sales
CONTACT Software and SiemensOct 2026
PLM.AI: CONTACT Elements as the product lifecycle management core; Siemens for AI-enabled design, simulation and digital validation
NVIDIA2023 for Omniverse in production
Omniverse for factory digital twins; driver-assistance computing and AI · Mercedes-Benz first used Omniverse digital twins at Rastatt, Kecskemét and Beijing (Sep 2023).
ApptronikMar 2025 investment
Apollo humanoid robots in production pilots; Mercedes-Benz is an investor · Mercedes-Benz made a low double-digit-million-euro investment in Apptronik in Mar 2025.
Innovation Park Artificial Intelligence (IPAI)
Heilbronn AI park for exchange with start-ups and researchers
Leadership
AI, data and platform leaders
Executives
Board
AI org map
Central IT and AI platforms under the HR and tech board member; delivery in each division
Mercedes-Benz places AI platforms in its group IT organization, which moved from CEO Ola Källenius into Britta Seeger's People & Enterprise Tech division by Jun 2026, combining HR and IT on the Board of Management. CIO Jonas von Malottki took over global IT from Katrin Lehmann on Oct 1, 2026 and reports to Seeger. Lehmann created the Global Cyber Security, Data and AI unit in 2025; Mercedes-Benz has not published where that unit or the company-wide AI Competence Centre reports since Oct 2026. The divisions for development, production and sales, each led by a board member, build their own AI applications on these platforms.
Mercedes-Benz has not published how many people work on AI. Mercedes-Benz's AI work sits in the group IT organization under CIO Jonas von Malottki, which includes a company-wide AI Competence Centre and a Global Cyber Security, Data and AI unit. Mercedes-Benz's divisions also do AI work, including the Mercedes-Benz Digital Factory Campus in Berlin-Marienfelde for production and the development organization behind PLM.AI. A Jul 2026 RAISE Summit session said Mercedes-Benz had scaled agentic AI across 10,000 engineers. Ola Källenius said in Sep 2026 that the Bangalore engineering center, the largest outside Germany, employs about 8,500 people.
Reporting lines
Chairman of the Board of Management
People & Enterprise Tech
Britta Seeger
HR and global IT combined; IT moved from the CEO by Jun 2026
Group IT
Jonas von Malottki, CIO
IT across all divisions, brands and markets; Copilot, Direct Chat and n8n
AI Competence Centre
Company-wide platforms, frameworks and tools, plus AI advice and training; leader not published
Global Cyber Security, Data and AI
Created May 2025 under CIO Katrin Lehmann; reporting line after Oct 2026 not published
Production, Quality & Supply Chain Management
Michael Schiebe
MO360, the MO360 AI Factory and the Digital Factory Campus in Berlin-Marienfelde
Finance & Controlling
Harald Wilhelm, CFO
Mercedes-Benz's Board of Management page, checked Nov 9, 2026, lists 8 members and no chief AI officer; Britta Seeger's title reads People & Enterprise Tech and Labour Director. Stuttgarter Zeitung reported on Jun 9, 2026 that IT had moved to Seeger, and CIO Magazin dated the move to Jun 2026. The line from CIO to Seeger is reported by Stuttgarter Zeitung and CIO Magazin, not published by Mercedes-Benz. Mercedes-Benz names a Mercedes-Benz AI, Data & Cyber Security unit on its Group Risk Management Committee (2025 Annual Report).
Where the AI workforce sits
Group IT, AI Competence Centre and Cyber Security, Data and AI
Mercedes-Benz has not published IT or AI headcount.
Not disclosedDevelopment, software and engineering
A Jul 2026 RAISE Summit listing put engineers on agentic AI tools at 10,000; the Bangalore center employs about 8,500 people (Sep 2026).
Not disclosedProduction digitalization
The Digital Factory Campus in Berlin-Marienfelde develops and tests MO360 software and AI before plants adopt it.
Not disclosed
Named people
Use cases
Mercedes-Benz Group runs AI across production, development, software engineering, procurement, sales, after-sales and corporate work. Ola Källenius counted dozens, if not hundreds, of AI-driven projects in Feb 2026. Mercedes-Benz has published no business return it credits to AI for any use case. Mercedes-Benz's figures are targets (PLM.AI's up to 30% shorter development time), speedups (development cycles up to 25% faster with Cognition) or an older pilot result (20% less energy in a Rastatt paint shop pilot, Sep 2023). At firm level, Mercedes-Benz reports savings from Next Level Performance and its productivity drive but does not say how much comes from AI.
| Use case | Area | Status | ROI |
|---|---|---|---|
| Digital Factory Chatbot Ecosystem Mercedes-Benz's in-house production chatbots in the MO360 AI Factory let plant staff ask questions about machine maintenance and manufacturing best practice and get answers from production databases in several languages. | Production | In production | |
| AI agents for quality deviations A virtual multi-agent system in MO360 analyzes production data in real time to find patterns, anomalies and likely causes when quality suddenly deviates, in place of manual root-cause analysis. | Production | In production | |
| Process intelligence with Celonis Mercedes-Benz uses Celonis AI copilots alongside MO360 to forecast delivery timelines and sequencing, find bottlenecks in service parts logistics and flag quality anomalies early. Mercedes-Benz cited better on-time delivery without a figure (Nov 2025). | Production | In production | |
| AI control in the Rastatt paint shop An AI-powered paint shop at the Rastatt plant optimizes the painting process in real time. In pilot testing reported in Sep 2023, AI monitoring of sub-processes saved 20% of energy. | Production | In production | |
| Factory digital twins Mercedes-Benz plans, builds and tests assembly areas virtually in digital twins of its plants, first with NVIDIA Omniverse at Rastatt, Kecskemét and Beijing (Sep 2023). | Production | In production | |
| Humanoid robots in intralogistics Mercedes-Benz is testing Apptronik's Apollo humanoid robots to carry parts to the line and run first quality checks at the Digital Factory Campus in Berlin. Ola Källenius called the robots advanced pilots in Feb 2026. | Production | Pilot | |
| PLM.AI PLM.AI connects development data across the product lifecycle so AI agents can weigh cost, weight, crash and production trade-offs together. Mercedes-Benz expects up to 30% shorter development time and says physical testing could be cut by half over time. | Development | Announced | |
| AI agents in engineering processes AI agents already support individual steps of Mercedes-Benz product development, such as material cost optimization, certification and homologation, and finding and fixing faults. | Development | In production | |
| AI crash simulations Mercedes-Benz uses AI-powered crash simulations to make virtual vehicle tests more accurate from early development. | Development | In production | |
| Agentic coding with Devin and Windsurf Mercedes-Benz engineers in R&D and IT use Cognition's Devin and Windsurf for legacy modernization, cloud-native development and logistics software, which Mercedes-Benz says speeds development cycles by up to 25%. | Software and IT | In production | |
| Supplier quotes and supplier risk Mercedes-Benz uses AI to evaluate supplier quotations, and its procurement teams screen Tier 1 suppliers for human rights and environmental risk with AI (2025 Annual Report). | Procurement | In production | |
| AI-supported pricing Mercedes-Benz steers prices and volumes with AI-supported, data-driven elasticity analysis, according to its Feb 2026 sales and customer update. | Sales | In production | |
| Customer support and pre-sales agents n8n workflows at Mercedes-Benz handle recurring customer support issues on their own, route complex cases to staff and orchestrate AI agents across pre-sales and advisory systems, according to n8n (May 2026). Google Cloud said in Apr 2024 that automated agents in Mercedes-Benz's US call centers had handled more than 1 million calls. | Sales | In production | |
| Online sales assistant and marketing Mercedes-Benz planned a Gemini-based sales assistant for its websites and more personalized marketing on Google Cloud's Vertex AI, announced in Apr 2024. | Sales | Announced | |
| XENTRY Vehicle Detector The XENTRY Vehicle Detector scans cars arriving at Mercedes-Benz workshops and uses AI to find damage faster. | After-sales | In production | |
| Microsoft 365 Copilot Microsoft 365 Copilot drafts reports, summarizes information and prepares decision papers for Mercedes-Benz's administrative and production-related staff worldwide. | Firmwide | In production | |
| Direct Chat Direct Chat lets Mercedes-Benz employees write emails and reports, summarize documents and query internal knowledge through Mercedes-specific agents. | Firmwide | In production | |
| Employee-built AI workflows on n8n Mercedes-Benz employees build AI workflows on n8n. Then-CIO Katrin Lehmann said in May 2026 that employees could use n8n to search maintenance cases across plants worldwide for similar faults and to value returned lease cars in after-sales. n8n says IT operations workflows already analyze logs and pre-qualify incidents. | Firmwide | In production |
Adoption
Mercedes-Benz spread AI in layers. Production data moved onto the MO360 Data Platform from Oct 2022, and the Direct Chat app arrived in late 2023. Microsoft 365 Copilot reached selected areas from 2024 and the whole group from Mar 2026. n8n workflows and Cognition's coding agents followed in 2026. Mercedes-Benz's Mar 3, 2026 release put the weekly AI usage rate among all employees at about 50%, more than double over the previous year. Then-CIO Katrin Lehmann gave a narrower measure in May 2026, reported by Stuttgarter Zeitung: about 60% of employees with office workstations used an AI tool at least once a week, against 20% at the start of 2026, with a target of 70% by year-end. Mercedes-Benz has not explained how the two measures relate. Just Auto reported in Jun 2026, paraphrasing Britta Seeger, that about 60% of employees used AI every day, up from 30% 18 months earlier. Mercedes-Benz has not confirmed that daily measure, which differs from its weekly figures. Mercedes-Benz runs a weekly Friday learning hour for more than 10,000 staff, and tens of thousands had completed its AI Learning Journey by Oct 2025.
By the numbers
Rollout, first pilot to today
2019
Mercedes-Benz set out its AI principles, among the first carmakers to do so.
Oct 2022
Mercedes-Benz launched the MO360 Data Platform with Microsoft, connecting its roughly 30 passenger car plants to Azure for analytics and AI.
Late 2023
Mercedes-Benz launched Direct Chat, an internal ChatGPT-based app on Azure OpenAI Service.
Sep 2023
Mercedes-Benz reported that AI monitoring cut energy use by 20% in a Rastatt paint shop pilot and that it used NVIDIA Omniverse digital twins at Rastatt, Kecskemét and Beijing.
Apr 2024
Google Cloud and Mercedes-Benz expanded their partnership to Vertex AI for sales, marketing and call centers, where automated agents had handled more than 1 million U.S. calls.
Mar 2025
Mercedes-Benz added the Digital Factory Chatbot Ecosystem and MO360LLM Suite to MO360 and invested in Apptronik to test humanoid robots in production.
May 2025
Daniel Eitler became Mercedes-Benz's first Chief Data & AI Officer, leading a new Global Cyber Security, Data and AI unit.
Aug 2025
Mercedes-Benz added Google Gemini models to Direct Chat, which had more than 10,000 daily power users by Oct 2025.
Nov 2025
Mercedes-Benz presented its expanded use of Celonis AI copilots in order-to-delivery, after-sales logistics and quality management.
Mar 2026
Mercedes-Benz began rolling out Microsoft 365 Copilot to all administrative and production-related staff worldwide and said about 50% of employees used AI each week.
Apr 2026
Mercedes-Benz deployed Cognition's Devin and Windsurf to engineering teams in the United States, Europe and Asia.
May 2026
Mercedes-Benz began rolling out n8n for AI workflows worldwide after a hackathon with more than 1,500 employees, and CIO Katrin Lehmann put weekly AI use among office staff at about 60%.
Oct 2026
Mercedes-Benz announced PLM.AI, an investment of around half a billion euros in AI-native product development.
Economics & controls
Spend and ROI
Technology budget
Mercedes-Benz does not publish an IT or AI budget. Mercedes-Benz Group spent €9.7 billion on research and development in 2025, level with 2024, of which €8.6 billion was at Mercedes-Benz Cars. Mercedes-Benz Group invested €5.5 billion in property, plant and equipment in 2025 (2025 Annual Report). Mercedes-Benz Cars cut its combined spending on property, plant and equipment and on R&D by 11% in the first 9 months of 2026 after its 2025 investment peak.
What AI itself costs
The AI investments Mercedes-Benz has disclosed are around half a billion euros for PLM.AI (Oct 2026) and a low double-digit-million-euro stake in Apptronik (Mar 2025). Mercedes-Benz has not disclosed what it pays for Microsoft 365 Copilot, Azure OpenAI Service, Google Gemini, n8n or Cognition. Mercedes-Benz said in Mar 2026 that one group-wide Copilot system reduces complexity and operating costs, without giving a figure.
Reported ROI
Mercedes-Benz has reported no business return it credits to AI. Next Level Performance, its efficiency program, contributed more than €3.5 billion to Mercedes-Benz Cars' earnings before interest and taxes in 2025 through savings on material, production, and selling, general and administrative costs. Mercedes-Benz says fixed costs have fallen about 25% since 2019, but does not attribute either figure to AI. Mercedes-Benz named AI among the levers, with energy, utilization, automation and logistics, for cutting production cost per unit by 10% from 2027 against 2024, a target with no AI share. CFO Harald Wilhelm said on Oct 28, 2026 that Mercedes-Benz is driving efficiencies through the broad use of agentic AI, without a number.
Productivity markers
Mercedes-Benz's AI figures measure speed, not cost. PLM.AI is expected to shorten development time by up to 30% and lift efficiency in individual engineering processes by up to 50% (Oct 2026). Cognition's tools are credited with development cycles up to 25% faster (Apr 2026), and Cognition says Devin cut a pilot COBOL modernization from an estimated 8 months to 8 days. A Rastatt paint shop pilot saved 20% of energy with AI monitoring (Sep 2023). Mercedes-Benz has not put a cost, capacity or headcount figure on any of them.
Headcount
Mercedes-Benz had 164,120 employees at Dec 31, 2025, down from 175,264 a year earlier. Mercedes-Benz launched a productivity offensive for its German sites in Jun 2026. Mercedes-Benz will reopen its voluntary severance program for indirect functions in Germany from Dec 2026, after paying out about €1.1 billion in cash for restructuring in the first 9 months of 2026. Ola Källenius tied the drive to AI on Oct 28, 2026, saying AI is changing the way Mercedes-Benz works. Katrin Lehmann, then CIO, said in May 2026 that job cuts should be seen separately from AI, and Britta Seeger said in Jun 2026 that AI is a productivity tool, not only a lever for cutting headcount.
Governance and risk
AI principles
Mercedes-Benz adopted AI principles in 2019, among the first carmakers to do so: responsible use, explainability, protection of privacy, and safety and reliability. Mercedes-Benz's 2025 Annual Report also addresses the responsible use of AI in relation to potential negative effects of bias.
Risk-based framework
Mercedes-Benz says it relies on a mandatory, risk-based AI governance framework and runs AI in a controlled environment for data security and compliance (Mar 2026). The Mercedes-Benz AI, Data & Cyber Security unit sits on the Group Risk Management Committee with finance, legal, compliance and corporate security (2025 Annual Report).
Data boundary
Mercedes-Benz processes Direct Chat inputs anonymously, stores no personal or sensitive data and does not use inputs to train AI models. Mercedes-Benz runs Direct Chat in European data centers through Azure OpenAI Service and tells employees not to enter personal or internal data and to review AI output before use. Mercedes-Benz chose n8n partly because it runs self-hosted, keeping workflow data on its own infrastructure (May 2026).
Humans decide
Katrin Lehmann, then CIO, said in May 2026 that AI at Mercedes-Benz is only a decision aid and never decides on its own. Lehmann said Mercedes-Benz keeps a four-to-six-eyes review principle. Mercedes-Benz says responsibility for product decisions in PLM.AI and for code written with Cognition's tools stays with its teams.
Board oversight
Mercedes-Benz's shareholders elected Rashmi Misra to the Supervisory Board on Apr 16, 2026, which the company said deepens the board's expertise in artificial intelligence. Mercedes-Benz used an AI application to transcribe shareholder speeches at the 2026 annual meeting, with staff checking the results.
Recent signals
Oct 29, 2026
Mercedes-Benz said it will reopen its voluntary severance program for indirect functions in Germany from Dec 2026 and is redesigning workflows with AI in administration and sales.
Oct 28, 2026
Ola Källenius said on the Q3 2026 call that AI will speed up product development at Mercedes-Benz by up to 30%. CFO Harald Wilhelm said Mercedes-Benz is driving efficiencies through the broad use of agentic AI, and Mercedes-Benz said it will expand its NVIDIA partnership on driver assistance.
Oct 16, 2026
Mercedes-Benz announced PLM.AI with CONTACT Software and Siemens, investing around half a billion euros to shorten development time by up to 30%.
Oct 1, 2026
Jonas von Malottki took over as CIO of Mercedes-Benz's global IT organization, succeeding Katrin Lehmann.
Sep 3, 2026
Ola Källenius told the Society of Indian Automobile Manufacturers that the shift to AI and automated driving is a bigger transformation for carmakers than electrification.
Jul 13, 2026
CIO Magazin reported that CIO Katrin Lehmann, who led Mercedes-Benz's Copilot, n8n and Direct Chat rollouts, would leave the company at her own request.
Jul 8, 2026
CIO Katrin Lehmann and Cognition's chief executive were billed at the RAISE Summit in Paris to discuss how Mercedes-Benz scaled agentic AI across 10,000 engineers.
Jun 22, 2026
Just Auto reported that Britta Seeger called AI a productivity tool rather than only a way to cut headcount, with Mercedes-Benz aiming for 70% AI adoption by the end of 2026.
Jun 9, 2026
Stuttgarter Zeitung reported that Mercedes-Benz moved IT from CEO Ola Källenius to Britta Seeger, combining HR and IT as People & Enterprise Tech, and that 90,000 office workstations had Copilot.
May 12, 2026
Mercedes-Benz announced a global rollout of n8n for AI workflows after a hackathon with more than 1,500 employees.
Apr 28, 2026
Mercedes-Benz said it is deploying Cognition's Devin and Windsurf to its engineers, accelerating development cycles by up to 25%.
Apr 16, 2026
Mercedes-Benz shareholders elected AI executive Rashmi Misra to the Supervisory Board.
Mar 3, 2026
Mercedes-Benz began rolling out Microsoft 365 Copilot to all administrative and production-related staff worldwide and said about 50% of employees used AI each week.
Feb 12, 2026
Ola Källenius told investors Mercedes-Benz has dozens, if not hundreds, of AI-driven projects, and Mercedes-Benz named AI among the levers for a 10% cut in production cost per unit from 2027.
Dec 1, 2025
Jörg Burzer became Mercedes-Benz's CTO, and Michael Schiebe took over production, quality and supply chain.
Quick answers
- How does Mercedes-Benz Group deploy AI?
- Mercedes-Benz deploys AI mostly through bought platforms run by its central IT: Microsoft 365 Copilot for administrative and production staff worldwide and the in-house Direct Chat app on OpenAI and Google Gemini models. Employees build AI workflows on n8n, and engineers use Cognition's Devin and Windsurf. About half of Mercedes-Benz employees used AI each week in Mar 2026, and IT reports to board member Britta Seeger. Mercedes-Benz has credited no business return to AI: PLM.AI's up to 30% shorter development time is a target.
- What does Mercedes-Benz Group use AI for?
- Mercedes-Benz Group runs AI across production, development, software engineering, procurement, sales, after-sales and corporate work. Ola Källenius counted dozens, if not hundreds, of AI-driven projects in Feb 2026. Mercedes-Benz has published no business return it credits to AI for any use case. Mercedes-Benz's figures are targets (PLM.AI's up to 30% shorter development time), speedups (development cycles up to 25% faster with Cognition) or an older pilot result (20% less energy in a Rastatt paint shop pilot, Sep 2023). At firm level, Mercedes-Benz reports savings from Next Level Performance and its productivity drive but does not say how much comes from AI.
- Who leads AI at Mercedes-Benz Group?
- AI at Mercedes-Benz Group is led by Britta Seeger (Member of the Board of Management, People & Enterprise Tech and Labour Director); Jonas von Malottki (Chief Information Officer); Daniel Eitler (Chief Data & AI Officer and Global CISO). Ownership of AI on the org chart: Board member Britta Seeger (People & Enterprise Tech); CIO Jonas von Malottki since Oct 2026.
- What AI platform does Mercedes-Benz Group use?
- Mercedes-Benz combines tools it built, such as the Direct Chat app (late 2023) and the MO360 production chatbots, with bought platforms: Microsoft 365 Copilot group-wide from Mar 2026 and n8n for AI workflows from May 2026.
- Which AI models does Mercedes-Benz Group use?
- Mercedes-Benz's Direct Chat runs OpenAI models through Microsoft's Azure OpenAI Service in European data centers and added Google Gemini in Aug 2025; engineers use Cognition's Devin and Windsurf (Apr 2026).
- How many Mercedes-Benz employees use AI?
- Mercedes-Benz said about 50% of employees used AI each week in Mar 2026, more than double a year earlier, and more than 10,000 used Direct Chat daily as power users (Oct 2025).
- What return has Mercedes-Benz Group reported from AI?
- Mercedes-Benz Group has reported no business return it credits to AI in the 18 months since May 2025. PLM.AI's up to 30% shorter development time (Oct 2026) is a target. Cognition's tools are credited with development cycles up to 25% faster (Apr 2026), a speedup with no cost or headcount figure. The more than €3.5 billion contributed in 2025 by the Next Level Performance program (Feb 2026) is not credited to AI. Mercedes-Benz meets the Piloting rung through a company-wide rollout with a user figure. Mercedes-Benz's Mar 3, 2026 release on the group-wide Microsoft 365 Copilot rollout said about 50% of employees used AI each week, more than double a year earlier. Then-CIO Katrin Lehmann put weekly use among office staff at about 60% in May 2026. Board member Britta Seeger owns IT and AI as head of People & Enterprise Tech, and Jonas von Malottki has been CIO since Oct 1, 2026. Mercedes-Benz stays off Scaling until it credits returns to AI in several functions or reports a firm-level AI figure.
Open questions
- What return does Mercedes-Benz get from any deployed AI tool, such as Microsoft 365 Copilot, Direct Chat, the MO360 chatbots, Celonis, Cognition's coding agents or AI-supported pricing, in cost, headcount or revenue?
- How much of the more than €3.5 billion that Next Level Performance contributed in 2025, and of the 10% production cost cut targeted from 2027, does Mercedes-Benz credit to AI?
- How many Microsoft 365 Copilot seats has Mercedes-Benz bought, given that it said all administrative and production-related staff will get access and Stuttgarter Zeitung reported 90,000 office workstations?
- Does Mercedes-Benz measure AI use daily or weekly, and over which employees? Mercedes-Benz said about 50% weekly (Mar 2026), Katrin Lehmann said about 60% of office staff weekly (May 2026) and Just Auto reported about 60% daily (Jun 2026).
- Does Daniel Eitler still lead data and AI, and how is the Global Cyber Security, Data and AI unit placed under CIO Jonas von Malottki?
- Which models run behind the MO360 chatbots, the MO360LLM Suite and the PLM.AI agents, and where is Google Gemini hosted for Direct Chat?
- Will Apptronik's Apollo robots move from pilots to regular production work, and in which plants?
- Will the up to 30% shorter development time promised for PLM.AI show up in Mercedes-Benz's development costs, and when?
Sources
Mercedes-Benz
- Artificial intelligence at Mercedes-Benz
- AI strategy and the AI Pyramid
- Artificial intelligence in the value chain
- Mercedes-Benz Direct Chat (Oct 2025)
- AI at every digital workplace: Microsoft 365 Copilot rollout (Mar 3, 2026)
- Microsoft 365 Copilot as the standard of the digital workplace (Mar 2026)
- Integrating n8n into core business (May 12, 2026)
- Agentic AI in software development with Cognition (Apr 28, 2026)
- PLM.AI digitalises global product development (Oct 16, 2026)
- Handling of AI and the AI principles
- Board of Management
- Changes to the Board of Management, effective Dec 1, 2025
- Ola Källenius, biography
- Britta Seeger, biography
- Jörg Burzer, biography
- Michael Schiebe, biography
- Mathias Geisen, biography
- Rashmi Misra, Supervisory Board biography
- Mercedes-Benz Digital Factory Campus: AI and humanoid robots in production (Mar 18, 2025)
Filings, reports and investor materials
- Annual Report 2025 (Feb 2026)
- Full Year Results 2025 (Feb 12, 2026)
- Strategy update presentation (Feb 2026)
- Sales and customer update presentation (Feb 2026)
- Q4 2025 results and strategy update call transcript, StockAnalysis (Feb 12, 2026)
- Annual General Meeting 2026 transcript, StockAnalysis (Apr 16, 2026)
- 3rd Quarter Results 2026 (Oct 28, 2026)
- Interim Report Q3 2026 (Oct 28, 2026)
- Q3 2026 earnings call transcript, StockAnalysis (Oct 28, 2026)
Partners
- Microsoft: MO360 Data Platform on Microsoft Cloud (Oct 12, 2022)
- Google Cloud: partnership expanded to customer experiences with AI (Apr 9, 2024)
- Cognition: Mercedes-Benz partners with Cognition (Apr 2026)
- n8n: How n8n is powering AI automation at Mercedes-Benz (May 11, 2026)
- RAISE Summit: Mercedes-Benz scaled agentic AI across 10,000 engineers (Jul 8, 2026)
News
- Automotive World: Mercedes-Benz rolls out Microsoft Copilot globally (Mar 3, 2026)
- Stuttgarter Zeitung: Mercedes-Benz rolls out n8n and targets 70% AI use (May 12, 2026)
- Stuttgarter Zeitung: Mercedes combines HR and IT under Britta Seeger (Jun 9, 2026)
- Stuttgarter Zeitung: Mercedes names Jonas von Malottki as IT chief (Aug 6, 2026)
- CIO Magazin: Jonas von Malottki becomes CIO of Mercedes-Benz Group (Aug 6, 2026)
- CIO Magazin: Mercedes-Benz CIO Katrin Lehmann to leave (Jul 13, 2026)
- Just Auto: Mercedes prepares cost talks with labour representatives (Jun 22, 2026)
- aeemobility: Mercedes-Benz names a new head of data and AI (Mar 31, 2025)
- PEX Network: Mercedes-Benz accelerates AI-driven transformation with Celonis (Nov 2025)
- eeNews Europe: Mercedes-Benz prepares digital production system with generative AI (Sep 22, 2023)
- Autocar Professional: Källenius says AI shift outweighs EV transition (Sep 3, 2026)
- Evertiq: Mercedes-Benz reopens voluntary severance programme in Germany (Oct 29, 2026)
- R&D World: Mercedes shifts from voice commands to agentic copilots
Data confidence
- Confirmed
- Stated in a primary or reputable public source.
- Estimated
- Derived or approximated from public reporting.
- Unconfirmed
- Reported, but not yet corroborated.
Mercedes-Benz Group profile · Enterprise AI diffusion report by Imagine · facts checked against their sources on Nov 9, 2026