Artificial intelligence is becoming a regular tool inside dealerships, with more than half of dealership personnel saying they now use AI as part of their job, according to a new report from Reynolds and Reynolds.
The report, The State of AI in Automotive Retail: Q1 2026, is based on interviews with more than 500 dealership employees conducted by phone and email survey between Oct. 28 and Dec. 6, 2025. In total, 57 per cent of respondents reported using AI in some capacity.
Among executives and dealer principals, usage rose to 70 per cent. Fixed operations personnel also showed a 57 per cent usage rate. The most common dealership use cases included customer communications, scheduling, reporting, marketing content creation and handling internet leads, according to the report.
Beyond internal adoption, the report suggests customers may be open to AI in certain parts of the dealership experience. It found 61 per cent of respondents believe customers would rather use AI for some dealership interactions. Dealership employees also reported confidence in learning the technology, with 90 per cent saying they feel somewhat too comfortable integrating new tools such as AI.
Looking ahead, the report points to the next phase of AI development as better access to trusted dealership data, allowing tools to work more independently inside retail operations. It’s also worth noting that AI is already being used for practical tasks like lead handling, follow-up and reporting — areas where speed and consistency can directly affect close rates and customer satisfaction.
