BERLIN, Dec 8 : Only a handful of automotive corporations are more likely to maintain formidable synthetic intelligence funding within the coming years, a research launched on Monday confirmed, elevating doubts over whether or not present trade “euphoria” will ship lasting advantages.
By 2029, simply 5 per cent of automakers will preserve robust AI funding development, down from over 95 per cent at present, expertise analysis agency Gartner stated in its report on 2026 predictions for the sector.
The research discovered that solely carmakers with robust software program foundations, tech-savvy management and “a consistent very long-term focus on AI” are anticipated to drag forward, probably deepening a aggressive AI divide.
Volkswagen and different legacy producers, lengthy identified for engineering moderately than software program abilities, are battling to meet up with new tech-driven rivals similar to Tesla and BYD.
Many legacy automakers try, however inside obstacles and outdated mindsets maintain them again, Gartner analyst Pedro Pacheco advised Reuters.
Success requires corporations to grow to be “digital-first” organisations, eliminating inside obstacles and prioritising expertise on the highest ranges, together with direct reporting strains of software program leaders to CEOs, Pacheco stated.
“A company that is not great at software … is going inevitably to struggle,” he added.

