
"Gartner forecasts that most automotive companies will abandon AI initiatives within five years due to unrealistic expectations about quick returns - without recognizing the extensive training and development required for all but basic applications. "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," said Gartner VP Analyst Pedro Pacheco. "This euphoria will eventually turn into disappointment as these organizations are not able to achieve the ambitious goals they set for AI," he added."
"This pattern won't surprise Reg readers, as we have previously reported that just 5 percent of organizations have successfully integrated AI tools into production processes at scale, with 95 percent of enterprises seeing zero return from their AI investment. Gartner's assessment covers all AI applications - not just autonomous driving - including in-car systems that learn individual driver preferences and adapt vehicle behavior and settings accordingly."
Gartner forecasts most automotive companies will abandon AI initiatives within five years because of unrealistic expectations about quick returns and a failure to recognize the extensive training and development required for anything beyond basic applications. Only five percent of carmakers are expected to sustain heavy AI investments by the decade's end. AI applications considered include autonomous driving and in-car systems that learn driver preferences and adapt vehicle behavior. Companies with robust software foundations, tech-savvy leadership, and long-term AI focus will create a competitive divide, though buyer appetite for in-car AI remains uncertain amid varied market dynamics and new competitors.
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