A new study from technology research firm Gartner has raised serious doubts about whether the current “exuberance” in artificial intelligence (AI) investments in the automotive sector will yield lasting benefits. The study, published on Monday, indicates that only a limited number of automakers will be able to sustain ambitious AI investments in the coming years.
AI in Automotive Could Be Challenged
Gartner’s 2026 Industry Forecast report predicts that the percentage of automakers maintaining strong AI investment growth, currently over ninety-five percent, will decline to just five percent by 2029.
The study expects that in this fiercely competitive environment, only automakers with strong software infrastructures, technology-focused leadership, and a coherent long-term vision for AI will stand out. This is likely to deepen the competitive AI divide in the industry.
Established manufacturers like Volkswagen have long been known for their engineering prowess rather than their software. However, these established companies are now struggling to catch up with new technology-focused competitors like Tesla and BYD.
Gartner analyst Pedro Pacheco told Reuters that many traditional automakers are making efforts, but organizational barriers and outdated mindsets are slowing them down.
Pacheco stated that to succeed, companies must embrace digital first, eliminate internal barriers, and prioritize technology at the highest level, including having software leaders report directly to CEOs. “A company that isn’t good at software… will inevitably struggle,” he added.
