The European Green Deal defines 4 key elements for a sustainable mobility and automotive industry, namely: climate neutrality, zero pollution Europe, sustainable transport, and the transition to a circular economy. Digital technologies are a significant enabler for attaining the sustainability goals in mobility and transportation. The EC is taking initiatives to ensure that digital technologies such as AI, 5G, IoT and cloud/edge computing can accelerate the transition of the automotive industry to electrical, autonomous, connected, and shared vehicles. The current COVID-19 situation accelerates this trend. The AI4CSM project will develop advanced electronic components and systems (ECS) and architectures for future mass-market ECAS vehicles. This fuels the digital transformation in the automotive sector to support the mobility trends and accelerate the transition towards a sustainable green and digital economy. Having assembled some of Europe’s best partners from industry, research and academia, AI4CSM will deliver key innovations in technical areas including: sensor fusion and perception platforms; efficient propulsion and energy modules; advanced connectivity for cooperative mobility applications; vehicle/edge/cloud computing integration concepts; new digital platforms for efficient and federated computing; and intelligent components based on trustworthy AI techniques and methods. ECAS vehicles enabled by embedded intelligence and functional integration for future mobility, becomes the pivotal factor for the automotive sector to address the Green Deal principles. AI4CSM consists of 8 collaborative R&D clusters, gathering 41 partners from 10 countries. AI4CSM will reinforce user acceptance and affordability by convenience and services for the major transition to a diverse mobility. AI4CSM addresses the increasing demand of mobility, supporting future traffic concepts and strengthen the European automotive manufacturing base as a global industry leader.