This whitepaper discusses the transition from software-defined vehicles to AI-defined vehicles, emphasizing the automotive industry's need to adopt AI technologies for enhanced vehicle experiences and new revenue opportunities. It outlines the essential role of AI in key applications such as autonomous driving and in-cabin experiences, highlighting how AI can transform vehicle design and manufacturing processes. The document details the importance of developing robust AI-capable hardware platforms that meet evolving consumer expectations while maintaining high safety standards. It also addresses the significance of digital twin environments and the adoption of open-source solutions to facilitate innovation. The paper presents various case studies, including partnerships between AMD and Siemens, to illustrate successful implementations of AI technologies in the automotive sector. Additionally, it examines the implications of AI for business models and the automotive lifecycle, ultimately advocating for a strategic approach to integrating AI into vehicle development.