Michigan Auto Industry Faces Growing AI Skills Gap As Employers Warn Workforce Isn’t Ready

Nearly one in three automotive employers surveyed by the Center for Automotive Research (CAR) expect significant or extensive workforce skills gaps within the next one to three years as the industry’s transformation accelerates.

The findings come as automakers and suppliers adopt artificial intelligence, robotics, automation and software-defined vehicle technologies at an unprecedented pace, fundamentally changing the skills employers need from technicians, engineers and production workers.

“Michigan’s automotive leadership depends on the ability to anticipate workforce needs before they become constraints,” said Elizabeth Krear, president and CEO of CAR. “This assessment gives employers, educators, workforce partners and policymakers a clearer view of where skills gaps are emerging and where coordinated action can strengthen Michigan’s competitiveness.”

The report was prepared as part of Michigan’s Automotive Workforce Hub initiative, supported by the Michigan Department of Labor and Economic Opportunity (LEO). Researchers surveyed 67 businesses across 20 Michigan counties representing nearly every segment of the state’s automotive supply chain—from raw materials suppliers and manufacturers to engineering firms, dealerships, repair shops and logistics companies.

Top 10 Skills Michigan Auto Employers Want

1. Artificial intelligence

2. Software development

3. Data analytics

4. Automation & robotics

5. Vehicle diagnostics

6. Testing & calibration

7. CAD & digital engineering

8. Mechanical assembly

9. Problem solving

10. Communication & teamwork

Skills gaps expected to grow quickly

The survey found workforce shortages are expected to worsen over the next three years.

Among employers surveyed:

• 43% expect moderate workforce skills gaps.
• 29% expect significant or extensive skills gaps.
• Downstream automotive businesses—including dealerships, vehicle repair facilities, parts distributors and logistics companies—anticipate the greatest hiring challenges.

Researchers concluded Michigan’s workforce challenge now extends well beyond the shift from gasoline-powered vehicles to electric vehicles.

Instead, employers increasingly need workers who combine traditional manufacturing knowledge with advanced digital skills.

AI and software becoming essential automotive skills

Employers identified a growing need for workers with expertise in:

• Artificial intelligence
• Data management and analytics
• Software development and programming
• Automation and robotics
• Vehicle diagnostics
• Testing and calibration
• Computer-aided design (CAD)
• Mechanical assembly

Technical abilities alone won’t be enough.

Companies also reported increasing demand for communication skills, professionalism, adaptability, teamwork and problem-solving—often called “durable” or “soft” skills—that help employees succeed in rapidly changing workplaces.

The findings reinforce a trend already reshaping Michigan manufacturing.

As vehicles become increasingly software-defined and factories adopt AI-assisted production systems, technicians are expected to analyze digital diagnostics, work alongside collaborative robots and interact with automated inspection systems as often as traditional mechanical equipment.

Michigan colleges are already responding

The report also reinforces changes already underway across Michigan’s colleges and universities.

As MITechNews recently reported, higher education institutions across the state are rapidly expanding programs focused on artificial intelligence, cybersecurity, robotics and advanced software development to meet growing employer demand.

One example is Aquinas College, which recently launched new bachelor’s degree programs in Artificial Intelligence Literacy, Cybersecurity and Esports & Gaming Administration. College officials said the new programs were designed to prepare graduates for careers where AI and digital technologies are becoming core business skills rather than specialized expertise.

Other Michigan universities are making similar investments. Michigan Technological University is launching a dedicated bachelor’s degree in Artificial Intelligence this fall, while institutions including the University of Michigan, Michigan State University, Wayne State University and Lawrence Technological University continue expanding AI, robotics, cybersecurity and advanced engineering programs.

Those initiatives closely mirror CAR’s findings that tomorrow’s automotive workforce will require a blend of mechanical expertise, software development, automation, artificial intelligence and data analytics.

Employers still rely heavily on in-house training

Despite expanding educational opportunities, most employers continue developing talent themselves.

CAR found businesses primarily rely on:

• On-the-job training
• Internal company training
• Four-year colleges and universities
• Community colleges
• Apprenticeship programs
• Outside workforce development providers

Employers also called for stronger collaboration between industry and education, expanded apprenticeship opportunities, additional support for skilled trades programs and more training focused on emerging vehicle technologies.

Why it matters

Michigan’s economy remains deeply tied to the automotive industry, which supports hundreds of thousands of jobs directly and indirectly.

State leaders have spent the past several years competing aggressively for electric vehicle battery plants, semiconductor manufacturing, defense contracts, autonomous vehicle development and artificial intelligence investments.

But attracting those projects is only part of the equation.

CAR’s research suggests Michigan’s long-term competitiveness will increasingly depend on whether it can produce enough workers with the software, AI and advanced manufacturing skills employers need.

The report concludes that the future of Michigan’s automotive leadership will depend not only on innovation in vehicles and factories, but also on innovation in workforce development. As the industry evolves, preparing workers for AI-powered manufacturing may become one of the state’s most important economic priorities.