Gartner: Few Car Manufacturers Can Maintain AI Investment Until 2029

Gartner warned that few car manufacturers will be able to maintain AI investment in the next few years. The report was released on Monday 8 December and broke the industrial euphoria related to accelerating technology.

Gartner, a technology research and consulting firm based in the United States, estimates that only 5 percent of automakers will maintain AI investment growth in 2029. That figure is down from more than 95 percent of companies investing strongly at this time.

Gartner said only companies with strong software foundations were able to survive AI competition. The company is considered to have a leadership that is technology literate and long-term vision.

AI's ability gap will make the company excel further away from competitors. Old automotive companies like Volkswagen are struggling to catch up with Tesla and BYD.

The old company faces many internal barriers that hinder the adoption of new software. The obstacle includes an old work culture and a misaligned mindset.

Gartner analyst Pedro Pacheco assesses that changes should start from a leadership structure. He emphasized that the company must be a digital organization that provides space for software at the highest level.

Pacheco said software leaders must have a direct reporting path to the CEO. He assessed that such a structure accelerates the making of important decisions related to technology.

Pacheco added that companies that are weak in software will face major difficulties. He assessed that software capabilities are the main key to successful digital transformation.

Gartner assesses that AI investment requires a clear direction and a long commitment. Companies that are not ready will be left behind in the future technological race