The automotive sector is no longer debating whether artificial intelligence and digital tools matter. It is now confronting a harder question: how to turn technology investment into durable business value.
KPMG’s Global Tech Report 2026: Automotive, portrays an industry that is optimistic about growth, but increasingly aware that ambition alone will not be enough in a market being reshaped by software, data and automation.
That confidence is notable. The report says 88% of automotive executives are confident about revenue growth over the next two years, while 74% believe advanced technology will be the main driver of competitive advantage. This points to a sector that recognises technology as a commercial force, not merely an operational support function. Connected vehicles, intelligent manufacturing, digital customer platforms and data-led services are becoming central to how automotive businesses compete.
Yet the report also highlights a significant tension. While companies are investing in new tools, 86% of respondents agree that technology plans rapidly become outdated. For automotive leaders, this creates a moving target. They must make decisions on platforms, data, cyber security and AI while customer expectations, regulations, supply chains and geopolitical risks continue to shift. The result is a planning environment in which agility is as important as scale.
A key message from the report is that the industry must move beyond fragmented experimentation. Many organisations have tested AI and other digital technologies through pilots, but the next phase requires repeatable deployment across the business. That means modern technology architecture, reliable data foundations, clear operating models and the ability to scale successful use cases quickly. Without these basics, innovation risks remaining trapped in isolated projects that do not materially change performance.
Data is especially important. As vehicles become more connected and software-defined, automotive companies need stronger control over the information flowing through their products, factories and customer channels. Better data governance can support safer AI adoption, more responsive services and improved operational decisions. It can also help companies manage growing concerns around sovereignty, resilience and trust.
The report also reframes governance as an enabler rather than an obstacle. In a sector where software updates, cyber risks and AI decisions can affect safety, reputation and compliance, strong oversight is essential. The challenge is to design governance that protects the business while still allowing innovation to move at pace
For Andreas Ries, Global Head of Automotive at KPMG International, the emerging pattern is one of more disciplined sequencing: strengthening data, local capability and resilience before pursuing targeted growth under tighter financial and governance controls. His point captures the broader lesson for the sector. Technology leadership will not be defined by the biggest investment budgets, but by the ability to connect digital ambition with practical execution.
The winners in the automotive industry’s next chapter are likely to be those that treat AI and digital transformation as enterprise disciplines, not side projects. The opportunity is substantial, but so is the need for focus, resilience and measurable returns.
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