Mercedes adds Liquid AI on-device voice models to E-Class and CLE

Local first, cloud as a fallback

The company says on-device processing makes the assistant faster and improves privacy, in addition to letting it function offline. When the local model cannot handle a request, the system hands it over to a larger cloud-based model. A restaurant recommendation is one example of a query that would go to the cloud.

This split reflects a wider approach in the car industry: simple, frequent commands stay on the vehicle's own hardware, while open-ended questions that need broader knowledge are sent to bigger models online.

About Liquid AI

Liquid AI was founded in 2023 by researchers from the AI lab at the Massachusetts Institute of Technology. In late 2024 the startup raised $250 million at a valuation of $2.3 billion. It develops so-called liquid foundation models, which are distinguished by their small size, a trait that suits in-car hardware.

For buyers, the practical benefits are a voice assistant that responds without waiting on a network connection and that keeps more of their requests inside the car. Mercedes has not linked the feature to a paid plan, which removes one common barrier to using it. The wider S-Class, GLC Electric and GLE rollout is scheduled for the second quarter of 2027, and the company has so far named North America as the only market.