Automotive technology leaders must turn AI ambition into disciplined execution

The automotive industry is entering the Intelligence Age with confidence, but not yet with the maturity needed to match its ambitions.

According to KPMG’s Global Tech Report 2026: Automotive, senior leaders across original equipment manufacturers, commercial vehicle manufacturers, Tier-1 suppliers, new technology component providers and mobility solution providers see artificial intelligence, data and digital technologies as central to the sector’s next phase of growth. Yet the report also suggests that turning technological promise into measurable performance will require sharper execution, stronger governance and a more realistic view of organisational readiness.

The headline finding is that automotive executives are upbeat despite disruption. KPMG reports that 88% of respondents are confident about revenue growth over the next 24 months, while 74% agree that advanced technology will be the primary driver of competitive advantage. This optimism reflects a market in which software-defined vehicles, AI-enabled operations and data-led customer experiences are becoming essential rather than optional.

However, confidence is tempered by volatility. A striking 86% of respondents agree that technology plans quickly become outdated, underlining how difficult it has become to plan in a sector shaped by fast-moving innovation, geopolitical uncertainty and fragile supply chains. The challenge for automotive businesses is therefore not simply to adopt more technology, but to build organisations that can keep adapting as conditions change.

The report points to a clear shift away from isolated pilots towards platform-scale execution. Automotive companies are being urged to standardise technology architectures, strengthen data governance and industrialise the processes that allow AI to move from experimentation into everyday operations. This includes greater use of MLOps, stronger real-time data flows and repeatable digital capabilities that can be deployed across the enterprise.

Governance is another major theme. Rather than treating controls as a brake on innovation, the report argues that effective governance can accelerate performance. That means enabling decentralised digital innovation where it is safe to do so, while reinforcing cyber security, responsible AI principles and robust controls for software updates. In an industry where connected vehicles and digital services are expanding rapidly, trust and resilience are increasingly commercial assets.

Andreas Ries, Global Head of Automotive at KPMG International, says companies are sequencing their technology moves with more discipline, strengthening data resilience, sovereignty and local capability before pursuing targeted growth under tighter governance and financial control. That message captures the report’s central lesson: the winners will not necessarily be those that chase every new tool fastest, but those that connect technology investment to scalable value. [kpmg.com]

For automotive leaders, the task now is to turn disruption into momentum. AI and digital technologies may define future competitiveness, but only if supported by disciplined architecture, skilled people, resilient data foundations and governance that keeps pace with innovation. The Intelligence Age is arriving quickly. The industry’s opportunity is to enter it with ambition, but also with operational realism.