Bosch has announced a major investment of over €2.5 billion (approximately $2.7 billion) into artificial intelligence (AI) by the end of 2027, signaling its ambition to be at the forefront of the AI-driven transformation across mobility, industrial automation, and consumer goods.
The German engineering and technology giant made the announcement as part of its ongoing commitment to embed AI across its product and service ecosystem. The investment aims to bolster Bosch’s AI capabilities in multiple areas—including software development, semiconductor technology, and intelligent products—underlining the company’s belief that AI will be central to future growth and innovation.
Strategic Focus Areas
According to the company, a large portion of the investment will be directed toward developing next-generation chips, advancing edge AI, and training personnel. Bosch plans to double the number of AI-trained associates to 50,000 by 2025, with a focus on practical and scalable use cases.
Dr. Stefan Hartung, Chairman of the Bosch board of management, emphasized the importance of "AI that benefits people." He stated, “We are making targeted investments in AI to improve quality of life and make everyday products and services more intelligent, efficient, and secure.”
AI will be integrated into key verticals such as automotive systems, smart home devices, manufacturing processes, and mobility services. The company is especially focused on agentic AI—where systems can act autonomously in specific contexts to assist or replace human intervention. This has direct applications in autonomous driving, predictive maintenance, and energy efficiency.
Growing Presence in India
India is set to play a pivotal role in Bosch’s global AI roadmap. With over 35,000 employees in India, Bosch considers the country one of its key innovation hubs. The company has already made strategic AI investments in its Bengaluru-based innovation center, which houses a range of projects in automation, natural language processing, and machine vision.
Bosch’s India operations will also see expanded collaboration with local academic institutions and startups as the company looks to deepen its AI R&D capabilities. These initiatives are expected to accelerate AI productization, especially in high-growth sectors like mobility, smart cities, and industrial IoT.
Mobility at the Core
The mobility sector remains central to Bosch’s AI expansion. The company is developing solutions that optimize fuel efficiency, reduce emissions, and improve traffic safety using AI. Bosch’s AI-powered driver assistance and autonomous driving systems are already in development for various global automakers, and this fresh investment will help bring those technologies closer to commercialization.
Bosch also intends to leverage AI for improving logistics and supply chain operations in the transportation ecosystem. Through real-time analytics and intelligent forecasting, the company aims to make connected mobility more sustainable and cost-efficient.
Industry Implications
Bosch’s substantial investment aligns with a broader trend of traditional manufacturing giants adopting AI at scale to maintain competitive advantage. As AI moves from experimental stages into deployment, companies like Bosch are positioning themselves to lead in areas where hardware and software converge.
Analysts note that this commitment is a strong signal to the industry, showing that innovation is no longer limited to startups or Big Tech firms. Legacy engineering companies are now embracing AI as a strategic priority, blending decades of domain expertise with emerging technology.
This also marks a continuation of Bosch’s long-standing innovation ethos. The company has previously invested heavily in IoT, automation, and smart manufacturing, and now sees AI as the next frontier in shaping the industrial landscape.
Shaping Tomorrow’s Intelligent Ecosystems
With this €2.5 billion pledge, Bosch joins a growing list of global corporations that are betting big on AI to future-proof their operations and offerings. By combining AI with its core strengths in engineering, manufacturing, and product design, Bosch aims to create a new generation of smart systems that deliver tangible value across sectors.
As AI adoption accelerates worldwide, Bosch’s move could set a benchmark for other industrial players seeking to evolve in an increasingly intelligent, connected, and autonomous world.