Mercedes-Benz aims to reduce vehicle development time by up to 30% using artificial intelligence and simulation tools, Chairman of the Board of Management Ola Källenius told CNBC-TV18, with AI playing a role across the vehicle development cycle from engineering and virtual simulations to factory planning and production. Källenius said the company is looking at cutting product creation time by up to 30% with new development AI-based tools, allowing engineers to spend more time testing products in a virtual environment before moving to physical prototypes and pre-production vehicles. Mercedes-Benz is also using simulation to build and test factories virtually, including assembling cars in a simulated environment before physical construction, and plans to move from conventional automation towards AI-enabled robotics, with robots expected to take on increasingly complex assembly tasks. The company has started pilot projects in logistics, though Källenius said robotics in vehicle assembly would be more complex and take time to scale, and he sees this really taking off in the next two to four years. Källenius said he had reviewed use cases developed by Mercedes-Benz's engineering team in India, including projects involving startups in quantum computing and physical AI, and the company would use its existing talent base, recruit more people in AI and work with technology partners and startups in Bengaluru and across India.