Gartner said on Monday that while the automotive sector is currently experiencing “AI euphoria”, only a small percentage of companies will sustain this over the next five years.
- Firms that are already prioritizing software, tech-savvy leadership, and a long-term approach to AI investment will outdo peers, Gartner said.
- The firm also added that by 2030, at least one company will have implemented fully automated vehicle assembly.
- Companies that have advanced maturity in technical and AI areas have a natural head start, it said.
Only a small number of automotive companies will continue to sustain significant investments in artificial intelligence over the next five years, Gartner stated in a report on Monday.
By 2029, just 5% of automakers will sustain strong and ambitious AI investments, compared to over 95% today, the firm stated in the note. Gartner added that companies already prioritizing software foundations, leadership with solid tech know-how, and a long-term commitment towards AI will outdo their competition.
“The automotive sector is currently experiencing a period of AI euphoria, where many companies want to achieve disruptive value even before building strong AI foundations,” Pedro Pacheco, VP Analyst at Gartner, said in the note. “This euphoria will eventually turn into disappointment as these organizations are not able to achieve the ambitious goals they set for AI.”
Fully-Automated Vehicles
Gartner also predicted that advanced robotics on assembly lines will change the industry, and by 2030, at least one company will have successfully implemented a fully automated vehicle assembly line.
Marco Sandrone, VP Analyst at Gartner, noted that 12 out of 25 of the world’s top automakers are already testing advanced robotics in their factories. “Automated vehicle assembly helps automakers reduce labor costs, improve quality, and shorten production cycle times. For consumers, this means better vehicles at potentially lower prices,” he said.
AI Race
In the race to the top with AI, new tech firms like Tesla and China’s BYD lead with advanced technology, while legacy manufacturers play catch-up. Tesla’s full self-driving fleet and, most recently, its push into custom AI chips that can analyze a million video pixels in about a millisecond are a testament to the company’s commitment to AI. BYD has invested in an advanced research and development center to focus on AI and large-scale models.
Meanwhile, legacy manufacturers are also joining the game. In October this year, GM announced a new driver-assistant system to launch in 2028 that will support hands-free driving.
“Companies with advanced maturity in these areas have a natural head start. In addition, automotive companies led by execs with strong tech know-how are more likely to make AI their top priority instead of sticking to the traditional priorities of an automotive company,” said Pacheco in the note.
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