Qualcomm Inc (QCOM  ) is leveraging the power of generative artificial intelligence (AI) to expand its automotive chip business and offer innovative scenarios to automakers.

The company, renowned for its chips and modems found in Android phones, has been actively selling its Snapdragon Digital Chassis, a combination of hardware chips, sensors, and software, to automakers including General Motors Co (GM  ), Hyundai Motor Co, Ltd (HYMTF  ), and Volvo Car AB (VLVOF  ), CNBC reports.

The chipmaker is capitalizing on the potential of AI to entice automakers to adopt more of their chips, enabling the creation of scenarios such as smart assistants for drivers that can handle tasks like navigation, reservations, and other everyday computing activities.

Qualcomm's revenue from automotive sales is relatively small, amounting to $1.32 billion in fiscal 2022 (about 3% of its overall sales).

However, it projects substantial growth. It anticipates that its chips will be integrated into upcoming vehicles over the next few years, with an estimated sales target of over $9 billion by 2031.

Each vehicle utilizing Qualcomm's chips and software generates revenue ranging from $200 - $3,000.

Additionally, the company earns $5 for every car connected to 5G through licensing fees.

Qualcomm's CEO, Cristiano Amon, envisions vehicles evolving into "new computing platforms," as mentioned in a blog post.

The company is also working on creating a smart user guide through a language model fine-tuned on dense car manuals.

Additionally, it could leverage AI for driver monitoring detecting distractions or fatigue.

Introducing AI into Qualcomm's platform could also lead to features that offer over-the-air software upgrades for self-driving capabilities, allowing customers to unlock new features or services remotely.

Price Action: QCOM shares traded higher by 1.53% at $116.00 on the last check Thursday.