BERLIN, Dec 8 (Reuters) – Only a handful of automotive companies are likely to sustain ​ambitious artificial intelligence investment in the coming ‌years, a study released on Monday showed, raising doubts ‌over whether current industry “euphoria” will deliver lasting benefits.

By 2029, just 5% of automakers will maintain strong AI investment growth, down from over 95% today, ⁠technology research firm ‌Gartner said in its report on 2026 predictions for the sector.

The study found ‍that only carmakers with strong software foundations, tech-savvy leadership and “a consistent very long-term focus on AI” are expected to pull ​ahead, potentially deepening a competitive AI divide.

Volkswagen and ‌other legacy manufacturers, long known for engineering rather than software skills, are battling to catch up with new tech-driven rivals such as Tesla and BYD.

Many legacy automakers are trying, but internal obstacles ⁠and outdated mindsets hold ​them back, Gartner analyst Pedro ​Pacheco told Reuters.

Success requires companies to become “digital-first” organisations, eliminating internal obstacles and prioritising ‍technology at the ⁠highest levels, including direct reporting lines of software leaders to CEOs, Pacheco said.

“A company ⁠that is not great at software … is going inevitably ‌to struggle,” he added.

(Reporting by Rachel More, ‌editing by Kirsti Knolle)