AI and Self-Driving Tech Take Center Stage at CES as Automakers Pull Back on EV Push
GeokHub
LAS VEGAS, Jan 5 — GeokHub Artificial intelligence and autonomous driving technology are set to dominate CES 2026 this week, as automakers and investors shift attention away from electric vehicles and search for the next major growth engine in a sector facing rising costs, safety scrutiny and regulatory pressure.
With many carmakers scaling back electric vehicle ambitions, auto suppliers and technology startups are expected to unveil new self-driving hardware, software and partnerships aimed at reducing — or eliminating — the role of human drivers.
Industry executives say the spotlight has firmly moved to how AI can unlock commercially viable autonomy.
“This year, the focus is clearly on AI and autonomous driving,” said one industry analyst. “How companies deploy AI to make driverless systems safer and scalable will be closely watched.”
CES Without the EV Hype
CES, running from January 6 to 9, has in recent years become a major platform for electric vehicle debuts. That trend is now fading.
A rollback of EV-friendly incentives and policy support in the United States has cooled consumer demand, forcing automakers to cancel or delay new EV launches. As a result, most major manufacturers are not unveiling new electric models at CES this year, a sharp contrast to previous editions.
Instead, the focus is shifting to autonomy, connectivity and AI-driven vehicle intelligence.
Renewed Momentum for Autonomous Vehicles
While commercializing self-driving cars has proven costly and complex — with many firms exiting the space after regulatory hurdles and high-profile accidents — recent developments have reignited investor interest.
Pilot robotaxi services, expanding autonomous ride-hailing operations and rapid improvements in advanced driver-assistance systems have given the sector new momentum. Several automakers now offer hands-free highway driving, while others are working toward “eyes-off” and city-street autonomy.
Industry observers say capital is increasingly flowing toward companies that can demonstrate practical, scalable autonomy rather than experimental prototypes.
Costs, Tariffs and Competition Loom Large
Despite growing excitement around AI, automakers remain under financial pressure. Billions of dollars in EV-related write-downs, higher input costs and U.S. tariffs on vehicles and parts have squeezed margins.
Many manufacturers are absorbing tariff costs rather than passing them on to consumers, further straining profitability. Intensifying competition from Chinese automakers is also weighing on strategic decisions.
Cost control and operational efficiency are expected to be recurring themes throughout CES discussions.
