Press Release, 9 December 2025
The research firm Gartner has issued a sobering prediction for the future of AI in the auto industry: by 2029, only about 5% of automakers will continue to make heavy investments in artificial intelligence a sharp drop from the more than 95% currently chasing aggressive AI-driven strategies.
According to Gartner, the current wave of enthusiasm often labeled “AI euphoria” may fade as many manufacturers struggle to transform hype into reality without the right technical foundations. The firms likely to survive this shakeout will be those that have built strong in-house software capabilities, embrace long-term AI strategies, and are led by leadership that understands and prioritizes digital transformation.
The implications are profound: automakers without a strong software-first mindset may find themselves unable to keep pace with rivals who do. As the industry faces a growing divide, the winners will likely be those doubling down on AI fundamentals data infrastructure, software teams, and long-term vision — while others risk being left behind.
Compiled using AI
