Gartner tempers AI euphoria among carmakers

The auto industry’s current AI gold rush is set to fade fast. According to Gartner, only 5 percent of carmakers will continue ramping up AI investment by 2029, a steep drop from over 95 percent today. The consultancy warns that many companies chasing disruptive AI gains are skipping over foundational work in software and data, setting themselves up for disappointment.

“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,” says Pedro Pacheco, VP analyst at Gartner. Only organizations 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, Pacheco posits.

Gartner also forecasts that by 2030, at least one automaker will achieve fully automated vehicle assembly using advanced robotics. Already, 12 of the top 25 car manufacturers are piloting such systems to cut labor costs, improve quality and speed up production. However, Gartner’s report suggests that achieving these milestones will depend less on AI hype and more on focused, long-term technological discipline.