Conclusion

As per the Deloitte Automotive 2024 study, the automotive industry is set to experience dynamic shifts with the entrance of consumer electronics brands. These new players bring expertise in connectivity and infotainment systems—areas of high interest to consumers—challenging traditional automakers to innovate similarly. Price sensitivity and the desire for greener models are significant drivers for consumers considering brand switches, underscoring the need for established companies to adapt to changing preferences. Brand loyalty varies with more pronounced loyalty in developed markets, prompting traditional manufacturers to leverage their reputations while also focusing on affordability and sustainability to stay competitive. Trust in managing connected data remains predominantly with car manufacturers, but skepticism from some consumers presents monetization challenges for both new entrants and veteran companies.

Generative AI is set to affect all departments within automotive companies and it’s important to start adopting the technology promptly to harness its benefits while effectively managing its challenges. Leaders involved in piloting or implementing generative AI are optimistic but also recognize significant challenges. A vast majority, 79%, expect generative AI to drive substantial transformation within their organizations and industries over the next three years. Leaders acknowledge that the trajectory of their current decisions could significantly affect future outcomes as they balance the prospect of speed and value against managing potential risks and societal impacts.

Interestingly, leaders who self-assess their organization’s expertise in generative AI as very high also tend to report higher levels of trust and lower levels of uncertainty. These leaders also view widespread adoption as both an opportunity and a threat, placing them under greater pressure to adopt and scale generative AI initiatives.

In conclusion, while leaders, consultancies, and independent researchers are cognizant of the transformative power of generative AI, the early adopters are already actively making efforts to recruit technical talent, educate their workforce, and reskill workers affected by generative AI. There’s a general acknowledgment that more substantial measures are needed to fully leverage the capabilities of generative AI.