The spotlight at this year's Consumer Electronics Show (CES) in Las Vegas has decisively shifted from electric vehicles to the transformative power of artificial intelligence and autonomous driving technology. The event, running from January 6 to 9, 2026, is witnessing a major industry pivot as automakers grapple with policy reversals and high costs, forcing a strategic rethink.
AI Drives the Future, Beyond Just Cars
Investors and tech giants are betting big on AI to revitalize the automotive sector, which has faced hurdles like slow progress, safety concerns, and regulatory scrutiny. A host of auto suppliers and startups are showcasing advanced hardware and software aimed at taking over driving responsibilities, with major partnership announcements expected.
C.J. Finn, U.S. automotive industry leader for PwC, highlighted this trend, stating that the focus on AI and its application in solving the safe rollout of driverless cars will be closely monitored. The influence of AI, however, extends far beyond automobiles, permeating into robots, wearable gadgets, home devices, and health technology. Keynotes from leaders like Nvidia CEO Jensen Huang and AMD CEO Lisa Su underscore this broad tech dominance.
EV Ambitions Hit the Brakes
In a stark contrast to recent years, CES 2026 will see a notable absence of new electric vehicle launches from most major automakers. This pullback is a direct consequence of dampened demand, triggered by changes in EV-friendly incentives and policies under the Trump administration. The upheaval has compelled many companies to abandon or significantly delay their EV plans.
This strategic retreat marks a significant shift for CES, which had evolved into a key platform for automakers to debut their latest electric models. The industry is now channeling its resources and capital towards a different technological frontier.
Autonomy Gains Momentum Despite Cost Challenges
The push towards commercializing autonomous vehicles is gaining fresh momentum. Initiatives like Tesla's small robotaxi service in Austin, Texas, and the expansion of Alphabet's Waymo have injected new optimism. Advancements in driver-assist systems, offering features like hands-free highway driving, are bringing the technology closer to consumers. Companies like Rivian are even aiming for "eyes-off" functionality on city streets.
However, significant challenges remain. Felix Stellmaszek, global leader of automotive and mobility at Boston Consulting Group, identifies cost competitiveness as a central theme at CES. Automakers are being cautious with investments after absorbing billions in write-offs from altered EV strategies. Additionally, high tariffs on auto imports imposed by the U.S. government are squeezing profit margins, as many companies choose to absorb the costs rather than pass them to customers. Growing competition from Chinese manufacturers further adds to the pressure, making cost-efficiency a top priority for industry leaders gathered in Las Vegas.
