BERLIN, Dec 8 (Reuters) – Only a handful of automakers are likely to pursue ambitious investments in artificial intelligence in the coming years, a study showed on Monday, raising doubts about whether the industry’s current “euphoria” will produce lasting profits.
By 2029, only 5% of automakers will maintain strong growth in AI investments, compared with more than 95% today, technology research firm Gartner said in its report on industry forecasts for 2026.
The study found that only automakers with strong software foundations, tech-savvy leadership and a “very long-term, consistent focus on AI” are expected to get ahead, potentially widening the AI competitive gap.
Volkswagen (VOW3.DE, VWAGY) and other legacy automakers, long known for their engineering rather than software skills, are racing to catch up with newer technology-focused rivals such as Tesla (TSLA) and BYD (1211.HK, BYDDY).
Many legacy automakers are trying, but internal obstacles and outdated mindsets are holding them back, Gartner analyst Pedro Pacheco told Reuters.
To succeed, companies must become “digital-first” organizations, removing internal barriers and prioritizing technology at the highest levels, including direct reporting lines from software managers to CEOs, Pacheco said.
“A company that’s not good at software…is inevitably going to struggle,” he added.
(Reporting by Rachel More, editing by Kirsti Knolle)
