The proportion of automakers maintaining strong growth in AI investments is expected to drop to 5 percent by 2029, a sharp decline from 95 percent today, research firm Gartner said.
The company’s Monday report cast doubt on whether the current industry “euphoria” around AI will delivery value for many car manufacturers.
Some automakers are investing heavily in AI without strong foundations in the technology, said Gartner analyst Pedro Pacheco.
AI ‘euphoria’
“The automotive sector is currently experiencing a period of AI euphoria, where many companies want to achieve disruptive value even before building strong AI foundations,” he said.
“This euphoria will eventually turn into disappointment as these organisations are not able to achieve the ambitious goals they set for AI.”
In spite of initial enthusiasm, many carmakers face organisational resistance including the presence of legacy manufacturing systems, regulatory considerations and long development cycles, Gartner said.
The companies that maintain ambitious AI growth are expected to be those with strong internal software teams, robust data infrastructure, and leadership willing to prioritise digital capabilities over conventional automotive metrics, the firm said.
“Software and data are the cornerstones of AI,” Pacheco said. “Companies with advanced maturity in these areas have a natural head start. In addition, automotive companies led by execs with strong tech know-how are more likely to make AI their top priority instead of sticking to the traditional priorities of an automotive company.”
Tech focus
Firms with a strong tech focus are likely to pull ahead in digital development, potentially deepening a competitive divide on AI technology.
In an effort to compete with tech-focused car companies such as Tesla and China’s BYD, Volkswagen last year launched a joint venture with US electric carmaker Rivian to build electric vehicles on the start-up’s technology.
