Berlin: A new report from technology research firm Gartner says that only a small number of global automakers will continue strong investment in artificial intelligence in the coming years, despite many currently publicly supporting AI adoption. The study predicts that by 2029, only about five percent of automakers will maintain significant long term investment and organizational focus on AI compared to more than 95 percent today.
The report says that companies with a strong software culture and leadership that prioritizes digital transformation are more likely to succeed. Automakers that are structured around traditional engineering processes or rely heavily on legacy manufacturing methods may find it harder to keep pace with rapid AI-driven changes.
According to Gartner analysts, the companies that will lead the future of the automotive industry are those treating AI as essential to their operations, not as an optional feature. They warn that the industry could face a growing divide, where a small group of advanced automakers move ahead while many others fall behind.
Recent industry developments also reflect this trend. General Motors has begun reshaping its strategy around autonomous driving and software-based innovation. The company recently hired former executives from Tesla and Cruise to strengthen its efforts in AI and self driving technology. Analysts say this may signal a renewed push by GM to stay competitive in a changing industry.
However, market pressures may challenge sustained investment. In China, car sales dropped sharply in November, raising concerns that slowing demand could force companies to cut budgets for long term AI development.
Experts say that while autonomous driving remains a major focus, AI is increasingly being used across vehicle software, manufacturing automation, predictive maintenance and in car digital assistants. Companies that expand AI into these areas may benefit even if full self-driving takes longer to achieve.
Industry observers say the next few years will be critical as automakers decide whether to invest further or pause development. They warn that hesitation could leave some companies permanently behind in the shift toward software driven transportation.