5% of automakers will keep investing heavily in AI by 2029: Gartner

By 2029, only 5% of automakers will maintain strong  AI investment growth, a decline from over 95% today, predicts Gartner, Inc., a business and technology insights company.

“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,” said Pedro Pacheco, VP Analyst at Gartner. “This euphoria will eventually turn into disappointment as these organisations are not able to achieve the ambitious goals they set for AI.”

Gartner predicts that only a handful of automotive companies will maintain ambitious AI initiatives after the next five years. Organisations with strong software foundations, tech-savvy leadership, and a consistent very long-term focus on AI will pull ahead from the rest, creating a competitive AI divide.

“Software and data are the cornerstones of AI,” said Pacheco. “Companies with advanced maturity in these areas have a natural head start. In addition ...