On the Dash:
- Focus AI investments on measurable dealership needs, not adoption for its own sake.
- Prepare teams for shoppers who are using AI before they reach the showroom.
- Build AI into existing workflows to improve efficiency, customer service and decision-making.
Cox Automotive’s new quarterly AI in Auto Retail Tracker shows that 82% of dealers already use artificial intelligence, but many are still struggling to turn that adoption into measurable results.
The report, which combines survey data from dealership decision-makers and in-market vehicle shoppers, finds a widening gap between how much dealers expect from AI and what they are actually seeing. While 69% of dealers using AI expected the technology to drive sales and revenue growth, only 22% report seeing those results so far. Dealers cite similar gaps in profitability, lead quality and lead conversion, though many say AI has delivered more immediate gains in efficiency and productivity.
The confidence gap
While nearly half of dealers say they feel behind their peers in AI adoption, even though the technology has become nearly universal in dealerships, only a small percentage consider themselves AI leaders. According to the report, that disconnect shows adoption is no longer the real challenge facing dealers, but confidence is.
Meanwhile, shoppers are advancing faster than dealers can adapt, with 63% of in-market buyers indicating they will likely use AI in their next vehicle purchase. The report also highlights that AI tools are increasingly comparable to automotive shopping websites as sources for vehicle research. Since shoppers mainly rely on AI to gather information, ask questions, and arrive at dealerships well-prepared, only a small number of shoppers use AI to bypass dealer interactions entirely.
Dealers who work with external AI partners report higher rates of optimal AI use, more confidence in AI outputs and stronger business outcomes, the study found. Many dealerships also rely on internal AI champions in sales and marketing to drive adoption across their teams.
The findings emphasize process integration, rather than mere adoption, as the crucial factor for dealers experiencing success with AI. Cox Automotive likens this moment to the rise of the internet 25 years ago, when dealers also questioned whether the technology was a real opportunity, how consumers would respond, and how to measure success. As in the past, technology alone does not determine dealership success.
Today, dealers who generate value from AI focus on enhancing customer service, increasing efficiency, and making better business decisions, instead of using AI for its own sake. Ultimately, the report indicates that this approach presents the true opportunity.
