The dramatic decline signals not a lack of ambition, but a recalibration. Many automakers are discovering that the promise of AI requires far more than enthusiasm—it demands foundational software maturity, stable data systems, and leadership truly equipped to steer technological transformation.
Pedro Pacheco, VP Analyst at Gartner, explains the shift:
“The industry is currently in a phase of AI euphoria—where many companies are chasing breakthrough value without first building the fundamentals required for AI success. But this euphoria will give way to disappointment as organizations fail to meet the ambitious expectations they set.”
Gartner’s forecast highlights an emerging divide. Only a select group of automakers will continue large-scale AI initiatives through 2029—those who have already mastered the fundamentals of software development, data management, and long-term digital strategy.
“Software and data lie at the heart of AI,” Pacheco notes. “Automotive companies that already excel in these areas have a significant advantage. Similarly, automakers led by tech-forward executives are more likely to prioritize AI over traditional industry concerns.”
This “AI readiness gap” suggests an industry split between digital leaders and those struggling to adapt, with competitiveness increasingly tied to software capabilities rather than legacy manufacturing expertise.
While investment strategies shift, operational transformation continues to accelerate. Gartner predicts that by 2030, at least one major automaker will fully automate the vehicle assembly process—unlocking a milestone moment in the history of automotive production.
Marco Sandrone, VP Analyst at Gartner, emphasizes the magnitude of this shift:
“The race toward complete automation is intensifying. Nearly half of the world’s top automakers—12 out of 25—are already testing advanced robotics in their production facilities. Automated assembly lines can lower labor costs, enhance quality, and significantly shrink production cycle times.”
For consumers, this could mean quicker vehicle delivery, more consistent quality, and potentially lower prices as production processes become more efficient.
Although fully automated assembly lines may reduce direct labor needs on the factory floor, they are expected to create new opportunities across AI supervision, robotics maintenance, digital systems management, and industrial software engineering.
The challenge, Gartner warns, lies in whether automakers invest sufficiently in reskilling programs to prepare their workforce for a more automated and data-driven manufacturing world.
The coming years will test which automakers are prepared for the software-first future of mobility. As AI becomes more complex—and more deeply integrated into vehicles, production lines, and supply chains—only companies with strong digital foundations and visionary leadership will be able to keep pace.
The slowdown in AI investment is not a retreat. It is a reset—one that will separate early adopters with true capability from those following hype without strategy.
The evolving role of AI in automotive manufacturing, automation, and mobility will be a central focus at the 5th Edition of the Electric Vehicle Innovation Summit (EVIS Abu Dhabi 2026) and EcoMobility Global (EMG 2026), on 13–14 October 2026 at ADNEC Centre Abu Dhabi.
As the automotive sector confronts its biggest digital turning point in decades, EMG and EVIS Abu Dhabi offer a strategic global stage for companies to share insights, showcase breakthroughs, and shape the future of sustainable, intelligent mobility.
Source: https://www.sustainabilitymenews.com/transport/gartner-forecast-only-5-of-automakers-will-sustain-high-ai-investment-by-2029
