Cerence AI Powers Next-Gen Mercedes-Benz MBUX with Advanced GenAI, Conversational Capabilities

Cerence Inc. (NASDAQ:CRNC) is one of the best small cap AI stocks to buy according to analysts. On June 26, Cerence Inc. announced that its core technologies are powering the new agentic and GenAI capabilities within the 4th generation of Mercedes-Benz User Experience/MBUX.

The advanced system will debut in the all-new and all-electric Mercedes-Benz CLA, marking the first launch of Mercedes-Benz’s MB.OS operating system. Cerence AI’s solutions are fundamental to the MBUX Virtual Assistant and support conversational capabilities across 25 languages.

Cerence AI also allows MBUX to deliver more natural and empathetic interactions by analyzing a user’s voice and responding with varying emotional speaking styles through Cerence’s neural Text-to-Speec/TTS technology. The 2026 Mercedes-Benz CLA electric sedan, which will feature this new MBUX system, is expected to be released in the fall of 2025, with a hybrid version following early in 2026.

Cerence Inc. (NASDAQ:CRNC) provides AI-powered virtual assistants for the mobility/transportation market in the US, the rest of the Americas, Germany, the rest of Europe, the Middle East, Africa, Japan, and the rest of Asia-Pacific.

While we acknowledge the potential of CRNC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.