KPMG report reveals 86% of car executives are investing in AI, but only 20% are prepared for the transition as firms pivot to ‘friendshoring’ strategies.
The global automotive industry is at a critical “pivot point,” with a new report warning that while investment in artificial intelligence (AI) is surging, the vast majority of firms are fundamentally unprepared for the transition.
According to a study by KPMG, 86% of automotive executives are currently pouring capital into AI, yet only 20% admit their organisations are truly ready to implement it.
This “readiness gap” comes at a time of unprecedented pressure from soaring costs, geopolitical volatility, and a cooling electric vehicle (EV) market.
The ‘Five T’s’ of Survival
The report identifies a small elite—just 15% of organisations—that is successfully navigating current global uncertainties. These leaders are utilising a strategy termed the “Five T’s”: Transformation, Technology, Trust, Tensions (management), and Thriving Together.
Dr Andreas Ries, Global Head of Automotive at KPMG International, noted that the industry is being “completely reimagined” rather than merely evolving.
“Organisations that wish to remain competitive must undertake a major strategic overhaul to meet changing consumer expectations and geopolitical conflicts,” Dr Ries said.