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Self-Driving Technology and AI Take Center Stage at CES as Automakers Pull Back on EV Plans

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Autonomous driving technology and artificial intelligence are expected to dominate this year’s CES trade show in Las Vegas, as automakers and investors look beyond electric vehicles for growth amid rising costs, safety concerns, and regulatory pressure.

With many carmakers scaling back electric vehicle strategies, suppliers and startups are using CES to showcase advances in self-driving hardware and software. Industry observers expect a wave of partnerships and announcements focused on reducing driver involvement — or eliminating the human driver altogether.

“This year you will see more and more focus on AI and autonomous,” said C.J. Finn, U.S. automotive industry leader at PwC, adding that the industry’s ability to deploy driverless technology safely will be closely scrutinized. He noted that connectivity and AI-driven autonomy will be “front and center” at the event.

AI is also spreading well beyond vehicles, with applications ranging from robotics and wearable devices to smart home systems and healthcare technology. Among the headline speakers at CES are Jensen Huang of Nvidia and Lisa Su of Advanced Micro Devices.

CES 2026 runs from January 6 to 9 and has in recent years become a major platform for automakers to debut new EVs. This year, however, the show will feature far fewer electric vehicle launches. A rollback of EV-friendly incentives under the Trump administration — including the removal of a $7,500 tax credit — has cooled consumer demand and forced automakers to rethink their strategies. As a result, most major manufacturers are not planning new EV unveilings at CES, marking a sharp shift from previous editions.

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Despite years of heavy investment, commercializing autonomous vehicles has proven difficult. Regulatory hurdles, high development costs, and investigations following crashes have pushed several companies out of the market. Still, momentum has returned following Tesla’s limited robotaxi rollout in Austin and the continued expansion of Waymo, owned by Alphabet.

Advanced driver-assistance systems have also improved, with hands-free highway driving and automated lane changes becoming more common. Automakers such as Rivian are aiming to introduce “eyes-off” driving features and autonomous operation on city streets.

At the same time, cost pressures remain a major concern. Automakers are reassessing capital spending after absorbing billions of dollars in EV-related write-downs and grappling with tariffs on imported vehicles and parts. Many have chosen to absorb tariff costs rather than pass them on to consumers, squeezing profit margins.

“The main theme we expect to see emerging at CES is cost and cost competitiveness,” said Felix Stellmaszek, global automotive and mobility leader at Boston Consulting Group, noting that competition from Chinese automakers is also weighing on industry strategies.

Lucid, Nuro and Uber Unveil Robotaxi Ahead of Planned 2026 Launch

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Lucid Group, Nuro and Uber on Monday unveiled a production-intent robotaxi at the Consumer Electronics Show, marking a major step toward commercial deployment later this year.

The trio said on-road testing began in December, led by Nuro using safety-supervised engineering prototypes. A commercial launch is planned for the San Francisco Bay Area, with production expected to start later this year at Lucid’s Arizona factory, pending final validation.

The robotaxi is based on Lucid’s Gravity electric SUV and features a roof-mounted sensor “halo” combining cameras, lidar and radar for 360-degree perception. The vehicle runs Nuro’s Level 4 autonomous driving system and uses Nvidia’s DRIVE AGX Thor computing platform.

For Uber, the project reinforces its strategy of partnering with autonomous tech developers rather than owning self-driving systems. For Lucid, it represents a push to diversify beyond consumer EVs amid slowing demand and rising competition.

The unveiling places the partnership alongside other U.S. robotaxi efforts from Waymo and Tesla as the race to commercialize autonomous ride-hailing accelerates.

AI and Self-Driving Technology Take Center Stage at CES as Automakers Pull Back on EVs

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Autonomous driving and artificial intelligence are set to dominate the agenda at the Consumer Electronics Show in Las Vegas, as automakers scale back electric vehicle plans and look to AI-driven technologies as their next growth engine.

With EV demand cooling amid policy changes under Donald Trump and rising costs, most major automakers are skipping new EV launches at CES this year. Instead, suppliers and startups are expected to showcase advances in self-driving hardware, software and AI-powered driver assistance.

Industry leaders say investor attention is shifting toward autonomy. Recent moves — including limited robotaxi launches by Tesla and rapid expansion by Waymo — have renewed optimism after years of safety incidents, heavy spending and regulatory hurdles.

AI will feature prominently beyond vehicles, powering robots, wearables and smart devices. Keynote speakers include Jensen Huang of Nvidia and Lisa Su of Advanced Micro Devices.

Cost pressures remain a major concern. Automakers are absorbing higher tariffs and facing intensifying competition from Chinese rivals, prompting a sharper focus on efficiency and capital discipline as they bet that AI and autonomy — not EVs — will define the industry’s next phase.