Robert Bosch GmbH plans to invest more than $2.9 billion in artificial intelligence (AI) through 2027, according to company statements and media reports published Jan. 6.

It’s betting that the technology will help increase productivity and support new products. The investment reflects its effort to expand its use of software and data-driven technologies across its automotive, industrial, consumer goods and energy businesses, The Wall Street Journal reported, citing Bosch executives. Bosch is one of the world’s largest automotive and industrial suppliers. It employs about 421,000 people worldwide and supplies components and systems to automakers, manufacturers, and consumer markets.

Bosch said the spending will focus on applying AI to manufacturing operations, mobility systems, industrial automation and connected products, as companies across the automotive and industrial sectors accelerate efforts to embed software and intelligence into traditional hardware-driven businesses.

How Bosch is approaching its AI investment

Bosch CEO Stefan Hartung has previously described AI as a core growth driver for the company. In earlier company disclosures, Bosch said it expects AI to improve efficiency in factories, support advanced driver-assistance and automated driving technologies, and enable new digital services tied to physical products.

Reuters reported that Bosch has been expanding its software and digital capabilities as it prepares for long-term shifts in the automotive market, including electrification, automation and connected vehicles. The company has said it expects technology-driven changes to increase demand for software-based systems and services over time.

Bosch has not issued a standalone press release specifically announcing the $2.9 billion figure. However, multiple outlets, including The Wall Street Journal and Yahoo Finance, reported Jan. 6 that the spending plan represents an increase from earlier AI investment targets that Bosch outlined in 2024 and 2025.

Bosch previously disclosed plans to invest several billion U.S. dollars in AI by the end of the decade. That includes funding for research, product development and internal productivity tools. The company operates a global Bosch Center for Artificial Intelligence, which coordinates AI development across business units and research locations.

The investment places Bosch among a growing group of automotive and industrial suppliers increasing AI spending as competition intensifies software-defined vehicles, intelligent manufacturing systems and data-enabled services.

Bosch is privately held and majority owned by a charitable foundation. That allows it to pursue long-term technological investments without the pressure of short-term earnings faced by publicly traded peers.

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