Autonomous vehicles are on the horizon. Business leaders in all industries have to take a proactive approach to this transportation disruptor. They must make informed decisions and execute those decisions quickly to respond to the impending change. Here are 5 industries that will feel the impact almost immediately.
Insurance: Approximately 90 percent of car accidents are caused by human error. Manufacturers of autonomous vehicles promise a major reduction in the number of accidents, which will significantly change the insurance revenue model. Reducing the risk of motor vehicle accidents will reduce the demand for insurance, which should reduce premiums.
Law Enforcement: Speeding tickets are a major source of revenue for police departments. Autonomous vehicles should adhere to speed limits, which will significantly reduce the number of speeding tickets. We should see a major decrease in the number of drunk driving incidents and other traffic violations. This decrease should allow law enforcement to shift operational focus from traffic violations to other areas (possibly identity theft and cyber-crimes).
Legal Professionals: Personal injury attorneys should expect a significant decrease in the demand for their services. If autonomous vehicle manufactures are successful, vehicle collisions will be all but eliminated. This should cause some much needed relief to our judicial system that has been clogged by vehicle collision lawsuits. Personal injury attorneys will have to rebrand themselves.
Auto Repair: Autonomous vehicles will largely eliminate car crashes, decreasing the need for collision repair shops. This will decrease the demand for new auto parts, which will impact the after-market parts industry. If electronic vehicles become the dominant mode of transportation, the need for car maintenance and repair (such as fluid and hose changes, battery replacement, and transmission issues) will become almost nonexistent.
Hotels: If your vehicle is driving itself, the need for lodging will decrease as people sleep in their cars during overnight road trips. Using your car as mobile lodging is much cheaper and convenient than paying for a hotel/motel.
There are several other industries that will feel the impact such as parking, real estate, food and beverage. As these industries are negatively impacted, new industries will emerge. Autonomous vehicles will rely on sensors, big data, and the internet of things, which are all vulnerable to cyber attacks. Schools are already offering new programs to meet the increased demand for professionals in the cyber industries.