Ford's AI Bet Didn't Pay Off

But the company is making strides in quality. So, is Ford reliability finally back?

Author

Bernardo Montes de Oca
June 30, 2026

In partnership with

Four Wheel Trends Automotive Newsletter
Issue #203

Today, we discuss how Ford’s AI plan backfired, what caused it and why the company could finally be on the right track, quality-wise.

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In The Know

Ford’s AI Plan Backfired

Everyone is talking about AI and how they want to implement it across every imaginable productive sector. Ford was no exception. Not only that, but it was clear the company wanted to start its AI initiative with quality assurance.

After all, Ford’s quality issues have grown far more than the industry’s average, according to JD Power’s Vehicle Dependability Study (VDS). The brand went from 126 problems per 100 vehicles in 2020 to 228 in 2026. That’s an 80% increase. You can read the study here. 

Meanwhile, the industry average rose 52%. Back in 2020, Ford ranked 10th in dependability; it now ranks 21st in the VDS. Visit the 2020 results here to compare. 

We analyzed all of Ford’s recalls in 2025, as you can read here, and the reality is that the company is grappling with a perfect storm of factors.

As cars become increasingly complex, software becomes more critical. A glitch can upend entire vehicle lineups, and Ford is no stranger to that.

However, we can’t only blame the company’s quality problems on software and industry complexity. As we discussed here, Ford was aware of its quality issues for a long time. However, the company failed to act on time.

Not only that, but as Axios reported, the company had a record number of recalls (by 2023’s standards), yet there was no accountability. 91% of managers still got their bonus.

There lies the answer to why this year’s efforts to curb quality issues failed. In late June 2026, Ford announced that it would hire (and rehire) 350 engineers to help with  quality issues. It turns out the machines couldn’t do what experienced engineers could, as explained here.

The reason why AI failed is actually why implementing AI has yet to pay massive dividends everywhere. To explain, here’s what the VP of vehicle engineering said: “Artificial intelligence is a fantastic tool, but it's only as good as the information you use to train it.”

You can read more about his comments on how they chose to ignore engineers in the past here.

In short, Ford’s AI efforts were flawed because they carried the company’s view on quality for years. You can fit 900 cameras, but if those cameras are trained on years and years of flawed quality procedures, they won’t do much. Not only that, but they also don’t replace trained engineers with years of experience, know-how, and a critical eye for detail.

Hiring engineers isn’t the only surprise move from Ford, but this next one is positive. Ford’s CEO Jim Farley was all smiles in the latest presentation and with good reason.

Ford has jumped to 3rd overall in JD Power’s Initial Quality Study (IQS), after being 15th in 2023, as you can read here.

According to the CEO, these results are a clear reflection of the company’s efforts to prevent issues before they arise. It’s what they have focused on for the past four years.

We hope that his words are true. However, the IQS is an initial pulse. We’ll have to see in 2027 if the momentum continues and it’s reflected on the other one, the VDS.