Automakers Could Take A Big Hit Because Of An AI-Induced Chip Shortage

There’s a perpetual shortage of something in this era. Consumers are used to limits on everything from computers to eggs to phones to shoes. Chip shortages adversely affected new cars a few years ago and the same thing could be happening again but rather than faulting economic issues, it could be because of increasing demand from what many devices now use: AI.

Chips required for data centers popping up globally are stretching resources for everything connected with AI, from appliances to phones to other voice-operated assistants. Automakers, however, could take the biggest hit as many are using an increasing number of highly-capable chips for not just assistants, but advanced driver assistance systems (ADAS), navigation and audio and, eventually, autonomous vehicles, Bloomberg reported this week.

Analysis from S&P Global this month predicted AI data centers would increase demand, potentially driving prices up between 70% and 100% and cause shortages for at least the next two years. Samsung warned during CES 2026 that a chip shortage would adversely affect prices for all electronics, too, according to PYMNTS. Combined with tariffs and increasing prices of other materials, all companies are less willing to absorb the rising costs themselves before hitting consumers with higher prices.

New cars are increasingly expensive given how “software-defined†they’ve become and how many sensors have been added to them as ADAS systems become more sophisticated and offer improved reliability. Yet they’re also increasingly dependent on various chips from various suppliers with advanced infotainment systems with AI-enabled systems for navigation and radio functions, and even seatbelt systems.

Already, some automakers are exploring creative ways to decontent new cars so consumers don’t face sticker shock. Fiat CEO Olivier François told Autocar last week that he’d be open to limiting the top speed of its small cars sold in Europe to 73 mph to skirt European Union laws mandating ADAS systems as a way to lower vehicle costs because those cars are mostly used at low speeds rather than highways.