Future-Proof Your Business

Automotive companies are projected to see a significant rise in the use of artificial intelligence and other advanced technologies over the next four years, according to a new report by PwC.  

The firm’s inaugural Global Automotive Outlook predicts that the 47% of companies that use AI today will increase to 72% by 2030. And 51% of companies reported seeing it as one of the most important technologies for achieving strategic goals.  

The study found that 80% of automotive companies had a “high tolerance for strategic risk-taking,” which it called “future-fit” companies. The most frequently cited strategic move was “ecosystem participation” focused on technology because, PwC said, automotive firms “expect technology companies to displace industrial manufacturers as their most important collaborators over the next five years.” 

It also found “future-fit” companies more likely to report highly developed software engineering and AI capabilities, to expand into new customer segments, have a high tolerance for strategic risk-taking, and expand into offerings beyond automotive.  

When it comes to balancing investments, 73% of companies said their manufacturing and operations are primarily aimed at productivity and efficiency, and only 12% said they were primarily aimed at growth and increasing market share.  

Unsurprisingly, electric vehicles are an important driver of growth, EV production expected to rise from 18% to 30% within five years. Inversely, internal combustion engines are predicted to fall from 60% to 41%.  

To “future-proof” their business, PwC recommended auto companies reframe their strategies from sector to domain, become active participants in ecosystems, shift investments to be more forward-looking, and look beyond their core products to the wider mobility experience.