Bosch to invest nearly $3 billion in AI to boost productivity and new vehicle technology.

German auto supplier expands AI development, partnerships, and driver-assist systems amid restructuring pressures.

On the Dash:

• Bosch plans to invest nearly $3 billion in AI by 2027 to improve productivity and power new technologies.
• The company is expanding AI-driven driver-assist systems and partnerships with Microsoft and Kodiak AI.
• Bosch expects strong long-term growth in AI-based software, sensors, and autonomous vehicle technologies.

The leading global technology and services supplier, Bosch, said it will invest more than $2.9 billion in AI by the end of 2027, betting on the technology to improve productivity and support new automotive and industrial products.

The German auto-parts supplier said Monday it plans to invest more than 2.5 billion euros in AI applications and development over the next several years. The move comes as Bosch seeks to improve manufacturing efficiency and supply-chain performance amid strained market conditions and heightened global competition.

Bosch announced the investment at the CES trade show in Las Vegas, where it also unveiled new AI-based driver-assist systems. The technology includes features that allow vehicles to automatically search for parking spaces, along with a new range of sensors designed to support driving functions and help robots better recognize their surroundings and movements.

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The company said it will also expand its collaboration with Microsoft, signing a memorandum of understanding to explore the use of agentic AI to optimize factory production. Bosch said agentic AI can analyze large volumes of data, make largely autonomous decisions, and execute tasks to improve manufacturing, maintenance, and supply-chain operations.

Bosch is also partnering with the self-driving truck company Kodiak AI to develop autonomous truck platforms. Under the collaboration, Bosch will supply hardware components, including sensors and steering systems, while working with Kodiak on integrated software and vehicle architectures for driverless operation.

The investment in AI follows a period of restructuring at Bosch. The company has said it plans to cut about 13,000 jobs by the end of 2030, on top of 9,000 redundancies announced the year before, as it works to adapt to market pressures and to scale new technologies.

Despite the cuts, Bosch expects AI to drive long-term growth. The company said sales of its software, sensor technology, high-performance computers, and network components are projected to more than double by the mid-2030s to well above 10 billion euros. Revenue from software and services, much of it already AI-based, is expected to exceed 6 billion euros by the early 2030s.