AI Gets Practical as Automakers Reset Autonomy Dreams

Ford, GM, and Mercedes pull back from bold autonomy claims, betting instead on usable AI software and driver-assistance drivers can experience now

9 Jan 2026

After years of bold claims about self-driving cars, large carmakers are quietly adjusting their ambitions, placing less emphasis on near-term autonomy and more on artificial intelligence that can be deployed now and improved over time.

The shift reflects a growing recognition that fully autonomous vehicles remain constrained by regulation, cost and the complexity of real-world driving. Instead, manufacturers are prioritising software features that assist drivers, reduce distraction and can be updated throughout a vehicle’s life.

Ford illustrates the change in approach. The group is rolling out an AI-powered voice assistant and positioning itself for a cautious move towards Level 3 automated driving, where the car can take control in limited conditions. The focus is on practical tools such as conversational access to vehicle functions, fewer interactions with touchscreens and software updates that continue after purchase.

Executives have framed the strategy as a move away from costly hardware-led bets towards software that can be scaled across models, keeping vehicles affordable while allowing features to evolve.

General Motors is following a similar path. Its Super Cruise and Ultra Cruise driver assistance systems are expanding, supported by significant investment in in-house software teams. Mercedes-Benz has introduced Level 3 automation in tightly defined settings, while pushing over-the-air updates and digital services as core parts of its offering.

Volkswagen, which has struggled with delays at its Cariad software unit, is also recommitting to the idea of software-defined vehicles. Recent restructuring is intended to improve execution rather than abandon the strategy, according to people familiar with the plans.

Analysts describe the trend as a correction after years of overpromising. Rather than launching isolated features, carmakers are building digital platforms designed to be updated throughout a vehicle’s lifespan. That model is expected to allow faster iteration, closer alignment with regulators and new revenue streams from services.

Challenges remain. Regulations differ widely between markets, consumers may resist paying for software features, and confidence has been damaged by earlier claims that proved premature.

Still, the industry’s focus has shifted. Progress in automotive technology is becoming less about dramatic leaps and more about incremental gains, delivered through AI that drivers encounter every day.