The ‘AI Moment’: Why Standing Still Isn’t an Option in Automotive

The automotive retail industry is buzzing with talk of AI, but most dealers are still trying to figure out where they stand, and more importantly, where consumers and car shoppers stand when it comes to using AI. But even in just over the few past few years, AI adoption has exponentially increased. And now is your time to get ready for what’s coming quickly down the road.

The latest Cox Automotive study¹ reveals that dealers who use AI intentionally are seeing real improvements in profitability, efficiency, and customer satisfaction—and there are practical ways for others to do the same.

Let’s look at the key findings and highlight the actions you and your team should be taking as you strategize for 2026.

Why AI Matters – What Dealers Stand to Gain

AI isn’t just another tool – it’s a way for dealers to:

Respond to leads faster, so fewer opportunities slip away.
Make smarter pricing and inventory decisions, maximizing every car on the lot.
Connect with shoppers in a personal way, reaching buyers with the right message at the right time.
Streamline daily tasks, freeing up staff to focus on selling and service.
See real growth – dealers using AI are 50% more likely to report stronger sales and profits.

Whether the goal is to fix everyday headaches or find new ways to grow, AI delivers results that matter – today and for the future.

Clearing Up the Concerns

It’s normal to have questions about bringing AI into the dealership. The study highlights a few key points that help clear up the most common concerns:

Getting started is easier than expected. Over 80% of dealers who’ve adopted AI say the transition was smoother than anticipated.
AI supports staff, not replaces them. Automation takes care of repetitive tasks, so people can focus on what they do best – serving customers and closing deals.
No need to be a tech expert. Dealers found that starting small and building on early wins works, no matter the team’s experience level.

AI isn’t here to take over – it’s here to help dealers work smarter and deliver a better experience for customers. The real risk? Sitting on the sidelines while competitors race ahead.

The Data-Driven Advantage

Dealers who go all-in on AI are 50% more likely to report stronger sales, smoother operations, and higher profits than those who just dabble. And if complexity is a concern, remember – 81% say getting started was easier than expected.

Graphic showing two key AI adoption statistics for automotive dealers. Left side: 'Dealers who have fully adopted and optimized AI are 50% more likely to report revenue growth, efficiency gains, and higher profitability than those who are just dabbling.' Right side: '81% say implementation was easier than expected, compared to just 10% of other dealers in the study.' The percentages 50% and 81% are highlighted in large orange text.

Level Up: How Dealers Can Make AI Work

Ready to take action? Here’s a few things to consider as you’re reviewing and building your AI plan with your team for next year:

Pinpoint your bottlenecks. Where is time lost or opportunities missed?
Set clear goals and KPIs. Define what success looks like and track progress.
Build buy-in across your team. Share the plan, appoint champions, and celebrate early wins.
Pilot, learn, and scale. Start small, gather feedback, and refine your approach.
Make AI part of your everyday life. Encourage use in daily workflows and keep training a priority.
Clean your data. AI relies on clean, connected, up-to-date information that is easily ‘crawlable’ – gain visibility by optimizing your data.

Easy Ways to Get Started Now

No need to overcomplicate or fear AI. There are easy ways to get moving now so that you’re not left behind:

Automate lead follow-up and appointment scheduling.
Personalize communications with predictive insights.
Use AI-powered pricing tools to maximize every vehicle’s ROI.
Review performance regularly and adjust your strategy.

For the Road Forward

AI isn’t about replacing people or fearing something that’s coming at us 100mph – it’s about preparing for the exponential growth in use that is inevitable. It’s time to adopt, strategize, and help your team work smarter, not harder.

Whether you’re just starting out or already using AI to optimize your efficiencies, and ultimately, profitability, the key is to take action. The longer dealers wait, the more they risk falling behind competitors who are already seeing results.

With AI-driven search and car buying tools, Autotrader can help you experience more sales. We’re here to partner with you as we all navigate the new world of AI together.

Download the full eBook, “A Dealer’s Guide to Driving Outcomes with AI,” for practical tips, real-world examples, and a step-by-step roadmap to level up your dealership.

Want to hear more about AI in automotive from Cox Automotive experts?

1: How This Study Was Conducted

This report is based on a June 2025 survey of 516 decision makers and influencers at franchise dealerships. Additional insights were gathered through surveys and interviews with dealership leaders actively involved in AI adoption. Unless otherwise cited, all data presented in this eBook is sourced from the 2025 Cox Automotive AI Readiness Study.