U.S. automotive CEOs: Revving up innovation investments
U.S. automotive CEOs: Revving up innovation investments
Insight

U.S. automotive CEOs: Revving up innovation investments

With an intense battle for a leadership position in the autonomous vehicle market, our report reveals U.S. automotive CEOs are stepping up investment in innovation, artificial intelligence (AI) and emerging technologies compared to their global peers.

This post is one of a multi-part series that highlights our leaders’ views from KPMG’s 2017 CEO Outlook “Disrupt and Grow.”

With an intense battle for a leadership position in the autonomous vehicle market, our report reveals U.S. automotive CEOs are stepping up investment in innovation, artificial intelligence (AI) and emerging technologies compared to their global peers.

 

59% of U.S. CEOs say their companies intend to invest heavily in AI in the next 12 months, compared to just 39% of global CEOs.

74% of U.S. CEOs say they will be stepping up investment in emerging technologies in the next year, compared to just 51% of global CEOs.

82% of U.S. CEOs say they will increase investment in innovation, compared to just 45% of global CEOs.

Our study found higher levels of optimism and confidence by U.S. auto CEOs moving forward in their willingness to invest in emerging technology and innovation compared to their global counterparts. CEOs recognize that this is a critical juncture, one where they will make choices on whether to remain pure automakers or to become mobility service providers, or both.

Given the rapid pace of innovation and its inherent complexities, it’s really hard to be a CEO knowing that the investment decisions made today or not made will have profound implications on the future of their company. Moreover, breakthroughs in AI, especially in deep learning, are having an unprecedented impact on the advancement of autonomous vehicles and how customers are interacting with cars.

Our study also found U.S. auto CEOs are less concerned about increasing market share than their global peers, 33 percent versus 55 percent.

Technology implementation concerns persist

While CEOs conveyed a clear sense of prioritizing investment in cognitive and artificial technology, concerns over readiness to adopt these technologies persist.

  • In fact, nearly 40 percent of both U.S. and global automotive CEOs agreed with the statement that their organization is not ready to adopt advanced AI technology.
  • Additionally, 56 percent of U.S. automotive CEOs and 48 percent globally expressed concerns that their organizations do not currently have the sensory capabilities and innovative processes to respond to this rapid disruption.

In short, U.S. automotive CEOs are less concerned about increasing market share. In today’s accelerating digital world, concerns exist about readiness to adopt newer technologies.

The 2017 CEO Survey asked 400 U.S. CEOs to share their long-term insights on this moment of unprecedented change, and what they saw in the years ahead. Read 2017 CEO Outlook Disrupt and Grow, filled with powerful insights, including some surprising responses.