By now you’ve probably heard how AI is all the rage in automotive retail. You’ve heard how it’s revolutionizing the way dealers sell and the way buyers want to buy. In fact, AI has become such a hot topic that it’s now a regular part of industry conversations—highlighting just how important this technology is.
But there’s a reason for the hype—real business impact behind the buzz. According to recent Cox Automotive research, dealers who have fully adopted AI are seeing 50% higher revenue growth, efficiency gains, and profitability, compared to dealers who have only experimented with AI or are just getting started.
The Window for ‘Wait and See’ is Closing Fast
Despite all the buzz, three out of five dealers are just now starting to explore AI, and one out of four is still holding back, waiting for the right moment to engage with the technology, according to Cox Automotive research.
Meanwhile, those dealers that have fully adopted AI continue to run circles around the competition. They’re finding gains in efficiency, revenue, and profitability that indecisive dealerships are leaving behind.
That means the window for “wait and see” is closing fast with AI, and dealerships that fail to adopt won’t just miss out on the benefits of the latest trending technology, they risk losing market share as customers continue to demand change or find the AI-powered buying experiences they want elsewhere.
AI Is Only as Good as the Data It Depends On
Of course, AI isn’t perfect. And it’s not necessarily the end-all-be-all of dealership success and operational efficiency. That’s because AI depends on data. It learns from the inputs that you give it in order to deliver insights and buying experiences based on either quality or compromised information.
“If you have a fragmented data set that’s latent or just plain wrong, you’re really not automating success, you’re kind of automating chaos across the customer base and your sales team,” said Chase Abbott, vice president of sales at Cox Automotive.
In other words, data is critical to dealership outcomes. Up-to-the-minute, relevant data makes all the difference in delivering the right message and the right deal terms at the right time, in the way the customer needs and wants to see it.
AI That Brings More Customers in the Store
Most of the AI tools used in automotive retail today are pointed internally to sales and service reps to help them scan data, analyze reporting, and increase efficiency. And while this is an admirable use of new technology, AI can, and should, do so much more.
For example, AI that’s based on quality data and derived from real shopper experiences delivers insights and buying signals that inform you which shoppers are most likely to buy a vehicle. It then drafts and delivers personalized messages to those shoppers to keep them progressing toward a purchase.
Dealerships that are winning with AI aren’t just buying new tech. They’re using it to change the way they operate their businesses. They’re adopting AI as part of a new strategy that’s based on the insights and the opportunities it provides.
The Time to Adopt AI is Now
You may be tired of hearing about it, but AI is helping actual dealerships gain real market share, right now. The combination of the right data and the right AI technology can help you win customers, simplify workflows, improve processes, and stay competitive in a changing industry.
