80% Of New Cars To Be Software Defined, AI Powered By 2035 - Study

The IBM Institute for Business Value has released its newest 'Automotive 2035' report, which reveals the sector struggling with an irregular transition away from current products and business models.
Based on 1,230 interviews with top executives from automotive OEMs, suppliers, and related businesses in nine countries, this report reveals a data-driven examination of trends in the automotive and mobility industries over the next 10 years.
Over the next 10 years, 80% of new cars will feature some sort of electrified powertrain, according to the respondents. Additionally, 74% of executives said they think cars will be AI-powered and software-defined by 2035.

The industry's readiness to provide user experiences made possible by digital capabilities is another noteworthy aspect. By 2035, software and digital advancements are predicted to account for 58% of spending, up from the present 21%.
77% of senior executives complain about the lack of software development tools and techniques, making the technical difficulty of separating the software and hardware layers the top obstacle. Furthermore, a strong mechanical-driven culture is impeding the shift to software-driven product development, according to 74% of respondents.

AI is already being utilised in the automotive sector to create automated production lines and driverless cars.  Elon Musk recently unveiled a robotaxi with two gull-wing doors and no steering wheel or pedals. He also added a robovan to the lineup as Tesla transitions from being a mass-market, low-cost carmaker to a robotics company.
He said that the cars' reliance on artificial intelligence and cameras eliminates the need for additional gear, unlike robotaxi competitors, a strategy that experts and investors have criticised as difficult from a technical and regulatory standpoint.