Archive · 8 Dec 2025
Few Automakers Likely to Sustain AI Push
A new study says that most car companies won't keep investing in AI technology in the future.
Right now, almost all car companies are trying to use AI, but by 2029, only a few will keep putting a lot of money into it.
Companies like Tesla and BYD are leading in AI because they are good at software and technology.
Older car companies like Volkswagen are having a hard time catching up because they are not as good at software and have some internal problems.
To succeed, car companies need to focus more on technology and have leaders who understand tech.
Only 5% of automakers are expected to maintain strong AI investment growth by 2029, down from over 95% today.
Carmakers with strong software foundations, tech-savvy leadership, and long-term AI focus are likely to succeed.
Legacy automakers like Volkswagen are struggling to catch up with tech-driven rivals like Tesla and BYD.
Internal obstacles and outdated mindsets are holding back many legacy automakers.
Companies need to become 'digital-first' organizations to prioritize technology and succeed in AI.
- Who
- Automakers, including legacy manufacturers like Volkswagen and tech-driven rivals like Tesla and BYD
- What
- A study by Gartner predicting a significant drop in AI investment among automakers by 2029
- When
- The study was released on Monday
- Where
- The study focuses on the global automotive industry
- Why
- Legacy automakers are struggling with software skills and internal obstacles, while tech-driven rivals are leading in AI technology
- Current AI Investment
- Over 95% of automakers
- Projected AI Investment by 2029
- 5% of automakers
- Key Requirements for Success
- Strong software foundations, tech-savvy leadership, long-term AI focus
- Legacy Automakers Struggling
- Volkswagen and others
- Tech-Driven Rivals
- Tesla and BYD