Automakers' AI dreams may run out of road over the next five years

Only five percent of carmakers will sustain heavy AI investments by the end of the decade as most fail to meet amibitous goals.

Research biz Gartner forecasts that most automotive companies will abandon AI initiatives within five years due to unrealistic expectations about quick returns - without recognizing the extensive training and development required for all but basic applications.

"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 Gartner VP Analyst Pedro Pacheco.

"This euphoria will eventually turn into disappointment as these organizations are not able to achieve the ambitious goals they set for AI," he added.

This pattern won't surprise Reg readers, as we have previously reported that just 5 percent of organizations have successfully integrated AI tools into production processes at scale, with 95 percent of enterprises seeing zero return from ...