68% of Carmakers Adopt Agentic AI in Vehicle Development, Capgemini Report Finds

68% of Carmakers Adopt Agentic AI in Vehicle Development, Capgemini Report Finds

Technology
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Oct 25, 2026 02:28 PM
Article Summary

A Capgemini Research Institute report found that 68% of automotive companies are using or testing agentic AI in product development, with 33% in active use and 35% in pilot phases. AI use in non-core engineering activities is projected to rise from 26% to 68% within two to three years. The most successful companies achieved 17% faster development cycles, 19% higher engineering productivity, and a 19% reduction in time-to-market.

The number speaks for itself. A new Capgemini Research Institute report reveals that 68% of automotive companies are using or testing agentic AI in product development — 33% in active use and 35% still in pilot phases. The shift is real.

Agentic AI in automotive engineering: adoption by the numbers

The headline stat is just the beginning. The report, titled 'Rewriting Automotive Product Development: Leading the AI Race Among Competitors,' projects that AI use in non-core engineering activities will jump from 26% today to 68% within the next two to three years. That is a massive acceleration by any measure.

Governance remains the weak link. Only 5% of organizations have a fully advanced AI governance model in place, while 83% of executives say the technology helps engineers focus on core engineering tasks rather than administrative and coordination burdens. The gap between adoption and oversight is widening.

Productivity gains: 17% faster development cycles

The winners are pulling ahead. Companies with the most successful AI deployments achieved 17% faster development cycles, 19% higher engineering productivity. A 19% reduction in time-to-market. Those results stem from more advanced data repositories, clearer commercial use cases. Disciplined governance — not from rapid adoption alone.

Geographically, 53% of US automakers and 46% of European manufacturers are running AI initiatives, with 18% and 16% respectively holding comprehensive strategies. In China, only 7% of companies have reached a comparable level of strategic maturity. The regional gap reflects differing priorities, not just capabilities.

The survey covered 800 senior executives across 12 countries in North America, Europe, and Asia-Pacific. The question now is whether carmakers can turn these ambitions into tangible products — and whether automakers will let adoption speed outpace data quality and trust in the technology. The report bets on yes, with conditions.

Frequently Asked Questions

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68% of automotive companies use or test agentic AI, with 33% in active use and 35% in pilot phases.

They achieved 17% faster development cycles, 19% higher engineering productivity, and a 19% reduction in time-to-market.

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