Artificial intelligence adoption is becoming widespread across automotive retail, but dealers are still working out how to turn the technology into measurable business results.
The inaugural Cox Automotive AI in Auto Retail Tracker, a quarterly study of dealers and vehicle shoppers, found 82 per cent of dealers are already using AI. Customer follow-up, content generation and task automation are among the most common applications.
Despite that adoption, nearly half of dealers believe they are behind their peers.
The research also identified a sizable gap between dealers’ expectations and their results. Among dealerships using AI, 69 per cent expected the technology to increase sales and revenue, but only 22 per cent reported achieving those outcomes so far.
Cox Automotive said AI may instead be producing more immediate gains in efficiency and productivity while its longer-term financial impact develops. Consumers, meanwhile, appear ready to make AI a larger part of vehicle shopping. The study found 63 per cent of in-market shoppers said they definitely or probably will use AI during their next vehicle purchase. Rather than using AI to avoid dealerships, shoppers reported turning to the technology to research vehicles, develop questions and prepare for conversations with dealership staff.
The research also found dealerships working with external AI partners were more likely to report stronger outcomes, confidence in AI-generated outputs and optimal use of the technology. Some stores are also using internal AI champions in sales and marketing to encourage adoption.
Cox Automotive draws a parallel with the arrival of the internet: competitive advantage may come not from adopting technology first, but from successfully integrating it into existing operations, customer experiences and decision-making.
