AI In Automotive Doubtful, Study Predicts Only 5 Percent Of Manufacturers Can Last A Long Time

JAKARTA The adoption of artificial intelligence (AI) is becoming the "euphoria" in the global automotive industry. Based on the latest developments in the automotive industry towards the end of 2025, Tesla is the most dominant car manufacturer in the integration and use of AI in its vehicles. This dominance is mainly seen in the AI-based Full Self-Driving (FSD) system, which utilizes real-time data from millions of Tesla vehicles for autonomous machine learning, as well as humanoid optimized robotics that support the AI ecosystem more widely.

While in China, XPeng is arguably the most dominant Chinese car manufacturer in AI integration in its vehicles. This dominance is driven by the XPILOT 5.0 system, which is an AI-based end-to-end autonomous driving technology with voice-controlled AI capabilities, advanced autonomous navigation (Level 3+), and integration of data centers with Alibaba for machine learning from real-time driver data.

But a new study from technology research firm Gartner raises great doubts. The report predicts that the current surge in AI investment will not provide sustainable benefits for the majority of manufacturers.

Reuters reported, quoted Tuesday, December 9, a study released earlier this week showed that in 2029, only 5 percent of automakers will be able to maintain strong AI investment growth. This figure plummeted drastically from more than 95 percent of manufacturers investing heavily today.

According to Gartner, this phenomenon will deepen the gap of competition in the realm of AI. Only manufacturers that have three main pillars are expected to excel from the strong software (software) foundation, technology literate leadership (tech-savvy), and a consistent long-term focus on AI.

Legendary automakers such as Volkswagen (VW) are now struggling to catch up with pure technology-based rivals such as Tesla and manufacturer from China, BYD. These old manufacturers have been better known to excel in mechanical engineering, but are weak in software development.

Gartner analyst Pedro Pacheco explained to Reuters that many efforts made by legacy manufacturers were hampered by internal constraints and outdated mindsets.

"Companies that are not great in software ... will definitely be difficult," said Pacheco.

To succeed in the AI era, Pacheco said that the company must transform into an "digital-first" organization.

This means that it is not just adopting new technology, but also removing internal barriers and prioritizing technology at the highest level of management.

One of the important steps highlighted is to ensure that the leader of the software leadership has a direct reporting line to the company's CEO. Without fundamental structural change and mentality, ambitious AI investments are currently at risk of becoming in vain.