Magnus Östberg’s Lisbon Stopover: Exclusive Insights from Our Chief Software Officer

Ahead of his appearance at Web Summit for two highly anticipated sessions, Magnus Östberg stopped by the Mercedes-Benz.io office in Lisbon. There, the Chief Software Officer at Mercedes-Benz hosted an exclusive hybrid session for our MB.ioneers. The event began with a keynote that offered a glimpse into the future of automotive technology, highlighting cutting-edge software developments and AI-driven innovations. A lively Q&A session followed, where no topic was off-limits, leaving everyone energised and inspired.

From the evolution of over-the-air updates to harnessing AI in the most intuitive ways, here are the key moments you won’t want to miss. Buckle up, because the future of automotive is closer than you think!

From Luxury Cars to Intelligent Ecosystems

Our vehicles have always been synonymous with luxury, but as Magnus explained, they’re now evolving into hyper-intelligent systems. The shift isn’t just about sleek exteriors anymore — it's about the cutting-edge tech underneath.

“We’re ensuring that Mercedes-Benz offers more than just the luxury you see on the outside. Inside the vehicle, the experience will also be seamlessly enhanced with digital, cloud-connected features,” Magnus said.

He described this evolution as moving beyond static vehicles to a “dynamic” object that can grow and adapt. This transformation is powered by the Mercedes-Benz Operating System (MB.OS), a unified platform enabling seamless updates and cloud connectivity across every model. The E-Class is leading the way, with over-the-air updates and an operating system that adapts in real time.

And the best part? These updates aren’t just for show. They bring continuous enhancements to everything from infotainment to safety, making our vehicles feel brand new, even years after you drive them.

Millions of Cars Connected

Millions of vehicles are now connected to intelligent cloud systems, generating massive amounts of data daily. This data holds immense value, offering deep insights that can be used to improve vehicle performance, optimize user experience, and drive innovation in the automotive industry.

The traditional approach of using surveys to understand customer preferences is becoming obsolete. Today, we have access to real-time data that reveals what works, what doesn’t, and where improvements are needed. We can track app performance across various markets and regions, identifying areas where our navigation services have high penetration rates. If a service isn’t performing well in a specific market, we can pinpoint where customers are encountering obstacles in their journey and decide whether to address the issue or phase out the service to improve the overall online experience

This data-driven approach empowers Mercedes-Benz to stay agile and responsive to customer needs, setting a new standard for innovation and customer experience in the luxury automotive market.

Revolutionising the Drive, One Download at a Time

Updating vehicles used to be a logistical challenge, but those days are long gone. With end-to-end software architecture, updates are rolled out like it’s second nature. Over-the-air (OTA) updates keep our cars at the cutting edge, even after they leave the showroom.

A global team of developers can push software updates to our development fleet vehicles right from their own locations, setting in motion a continuous cycle of enhancement. This agile approach doesn’t stop there. Updates move through a rigorous process, from initial testing in prototype vehicles to integration in production vehicles and finally deployment in post-production phases at holding points. The transformed factories now handle hardware and software separately, streamlining updates in terminal stations and eliminating the old process of physically shipping software to suppliers.

This data-driven shift not only accelerates the update process but also marks a significant transformation in the logistical and IT infrastructure. What once required complex coordination is now a smooth, secure experience for our drivers. It’s more than just tech wizardry — it’s the next frontier in customer experience, supported by a modernized factory and distribution system. Soon, updates will reach every stage, from production floors to the customer’s dashboard.

Open Source: The Key to Tech Agility

Free and open-source software (FOSS) is transforming the way we operate. The risks of not adopting FOSS are significant, particularly in terms of financial risk. Developing everything in-house is time-consuming and expensive, and it could lock us into outdated technologies

FOSS provides us with a neutral platform, especially crucial as regulations become increasingly restrictive. By leveraging FOSS, we gain more flexibility in our software infrastructure and reduce dependence on specific partners, making it easier to adapt to regional requirements. We're also committed to contributing back, helping shape global software standards while ensuring full compliance with FOSS licensing in and outside of our vehicles. In doing so, we’re not only benefiting from open-source advancements but also actively contributing to a more robust and flexible tech ecosystem.

Curious about our contributions to the FOSS community? Check out the Mercedes-Benz GitHub to see the projects we support and our latest contributions.

Your Car, Now Your Best Listener

The most exciting revelation? Mercedes-Benz vehicles are about to make a significant leap in understanding and interacting with their drivers. Thanks to generative AI, future models will feature conversational abilities that feel natural, context-aware, and intuitive, transforming the driving experience.

“Once we have small models inside the vehicles, we’re going to basically see a completely new user interface,” Magnus teased, hinting at upcoming improvements in the MBUX system. Drivers will soon be able to speak with their car as seamlessly as they would with a friend, without memorizing commands or specific dialogue patterns.

This breakthrough is enabled by the brand's collaboration with Microsoft and Google, integrating generative AI capabilities with the Mercedes voice assistant to deliver an intelligent and contextually aware interaction. Starting with beta programs this year, these conversational features will soon be in production vehicles, enabling the assistant to recall previous exchanges, understand points of interest, and provide personalized guidance on nearby events or AMG experiences.

Magnus also emphasised the synergy between Mercedes-Benz.io and the broader Mercedes-Benz organization, especially around cross-selling opportunities. With the vehicle as a dedicated space, free from the distractions of the web, the AI assistant can respond to real-time contexts, offering relevant recommendations based on the driver’s location and interests.

What’s Next?

This unified vision led to a dynamic Q&A with our Tribe, highlighting our commitment to reshaping customer engagement through cutting-edge digital solutions. During this interactive segment, Magnus offered detailed insights into a wide range of topics, including open-source strategy, digital security, connected vehicles, and developer access. So, keep an eye on the road ahead, MB.ioneers. Mercedes-Benz is pushing boundaries, redefining luxury, and setting the pace for the future of driving.