Across the world, summer often signals a surge in travel – especially by car. Whether it’s a weekend getaway, vacation or simply commuting to work, our roads are visibly more congested. It’s just not in markets such as the USA. Globally, reports show that driving volumes have not only returned to pre-pandemic levels but are surpassing them. According to the OECD, vehicle miles travelled are returning to or exceeding 2019 levels across much of North America, Europe and the Asia-Pacific.
At the same time, both the experience of driving and what happens after an accident have changed dramatically. Technology is not only reshaping how people get from point A to point B but also changing how people are supported when things go wrong.
The rise of smarter, more complex vehicles
Today’s vehicles are far more advanced than they once were. They function as complex digital platforms with embedded safety systems, real-time connectivity and advanced automation. Features like Automatic Emergency Braking (AEB) and Advanced Driver Assistance Systems (ADAS) are now standard in many new vehicles. AEB is, in fact, mandated in the EU and required in all new light-duty vehicles in the USA as of 2029.
These technologies are designed to help drivers avoid accidents or reduce their severity, particularly in congested urban settings and lower-speed environments.
Global traffic accident rates, however, remain high. According to theWHO, road traffic crashes kill 1.3 million people each year and injure 20-50 million more.
Part of the paradox here lies in the human element of how today’s drivers interact with technology. Many drivers are still adjusting to semi-autonomous features, while a growing number may overestimate the capabilities of their vehicles. For example, they might believe ADAS can replace their need to be attentive on the road. Others may disable these systems entirely due to discomfort or lack of trust.
When safer tech drives higher repair complexity
Even when accidents are less severe, the cost and complexity of repairing vehicles with advanced technology have grown significantly. Modern cars can contain over 1,400 semiconductor chips and tens of thousands of parts. In terms of vehicle pricing, electronic components now account for roughly 40% of a vehicle’s cost, driven by innovations in infotainment, sensors, connectivity and automation.
Repairing these vehicles often requires specialized recalibration of sensors and replacement of costly modules. It’s no surprise, then, that repair costs are high and are likely to increase. For example, in the USA, the average cost to repair an internal combustion engine (ICE) vehicle is nearly 40% more than it was in 2020. Research also shows that electric vehicle repairs require nearly four additional labour hours than traditional ICE vehicles, resulting in labour costs averaging 30% higher.
A network that responds
The connection between vehicle platforms with accident response and the claims and repair management teams is also becoming much stronger. From the moment a crash occurs, for example, a series of systems and technologies may trigger:
- Telematics-based crash alerts that notify emergency responders
- Real-time dispatch of roadside assistance or towing.
- Automated claims intake, powered by AI, directly from a mobile device.
- Simultaneous scheduling of repair appointments at a network of digitally connected repair shops.
- AI and digitally powered claims and repair workflows that surface insights, inform decisions and speed best actions to improve the claims and repair experience.
- Instant digital payment processing and automated parts ordering.
This interconnected ecosystem relies on cloud-based integrations between automakers, insurers, collision repairers, tow providers and more. When these connections come together, intelligent experiences (IX) become possible for everyone involved. These experiences are designed to reduce friction and deliver faster recovery. They also improve transparency for consumers navigating post-accident services and for employees working to bring a resolution. The goal is to return drivers to the road quickly and restore their health after accident-related injuries, ensuring recovery is handled with speed, care and efficiency.
AI and automation are reshaping the claims process
In the USA, there is a clear shift toward tech-enabled, AI-powered claims and repair management. Today, nearly 30% of auto insurance claims are initiated using digital photo capture. This enables insurers and collision repairers to apply AI across the post-accident response. Such tools allow for more efficient processes, with AI assessing vehicle damage to generate estimates ready for review within seconds.
As vehicles continue to grow in complexity, the scale and speed of AI-driven claims and subsequent repair coordination are expected to grow along with them. Whether a driver is navigating city streets or major roadways, the driver’s expectation will be the same – if something goes wrong, the recovery will be smooth and fast.
A cross-sector challenge: Affordability and access
As the industry grows more complex, the focus must shift to tackling key challenges: controlling rising costs, meeting demand for skilled labour, and keeping new technologies accessible and efficient. Success depends not just on adoption but on responsible application.
The road ahead
The insurance and collision repair industry is embracing AI. We continue to see companies investing generously in R&D to streamline the historically fragmented post-accident process, optimize customer engagements and bolster workforce proficiency. Investment is expected to accelerate in the coming years. Financial services firms invested $35 billion in AI in 2023 and that number is projected to grow to $97 billion by 2027, with anticipated investments across insurance, banking and payments.
As investments in this space grow and organizations across the industry collaborate and focus on AI governance, we can expect to see a rapid shift from early adoption to enterprise value. By strengthening governance and upholding standards like bias mitigation and privacy protection, the industry can accelerate innovation while building the trust and confidence needed to deploy new technologies at scale.
There is no doubt that the modern road trip has evolved into a new digital experience. As drivers move toward more connected cars, post-accident processes will increasingly mirror the same innovation and technology built into the vehicles. This will ensure drivers benefit from advanced tools both in daily travel and when unexpected incidents occur.
This article is republished from The World Economic Forum under a Creative Commons license. Read the original article.