This article first appeared on GuruFocus.
China approved the first foreign automaker generative-AI services this week, clearing Tesla (NASDAQ:TSLA) and Mercedes-Benz (MBGAF) to offer in-car AI assistants to Chinese drivers.
Regulators in Shanghai registered Tesla’s xBot customer-service model, while Beijing’s cyberspace authority listed Mercedes-Benz’s virtual assistant.
The approvals let both firms deploy voice assistants that handle customer queries, navigation and media controls after meeting local cybersecurity, data-localization and content-safety requirements. Volvo’s cockpit assistant also secured registration in Shanghai, showing regulators will accept foreign models that localize operations.
For Tesla, the move formalizes earlier partnerships with local AI providers such as ByteDance and DeepSeek to power Chinese-language features and faster voice recognition in its Shanghai cars. Mercedes plans to integrate Douyin’s Skylark AI into the new CLA to support voice interaction and cabin controls.
The decisions mark a milestone in China’s AI rollout: regulators now let non-Chinese automakers run compliant generative-AI assistants, provided they tie into local review and safety processes.
