Automakers, by and large, have signaled a major pullback in artificial intelligence (AI) investment in the next few years, moving away from the current surge in spending as they struggle to meet their goals, according to a new report from research and advisory firm Gartner.
In its Predicts 2026: Automotive report, released on Dec. 8, Gartner said that by 2029, only 5 percent of automakers will maintain strong AI-investment growth, far lower than the more than 95 percent currently engaged. The expected pullback stems from high costs, integration challenges, and internal resistance among more traditional automakers.
Gartner analyst Pedro Pacheco said the automotive industry is experiencing “a period of AI euphoria,” with many companies attempting to achieve “disruptive value” without first building strong AI foundations….