Car dealerships are significantly increasing their investment in artificial intelligence (AI), with a notable 81% expecting an expansion of their AI budgets by 2025. This finding emerges from a recent survey titled "The 2025 State of AI Adoption in Car Dealerships," conducted by Fullpath, a customer data platform specialising in the automotive sector, in October.
The survey highlights that currently, 34% of car dealerships are employing AI technologies specifically for marketing and advertising purposes. Furthermore, among those dealerships utilising AI, 55% report a return on investment exceeding 20%. These statistics indicate a growing trend among dealerships to harness AI for improving operational efficiency and customer engagement.
In terms of current AI application, customer relationship management (CRM) emerges as the leading area for usage, followed closely by sales, customer service, fraud detection, and predictive maintenance. The survey further indicates that 34% of respondents anticipate their AI budgets will increase by between 11% to 25%, while 18% expect increases greater than 25%. A mere 7% foresee no changes in their AI funding.
The survey also reveals a notable commitment from general managers, with 25% indicating strong support for budget expansion. Dealer principals show similar enthusiasm, with 22% advocating for increased funding. This vocal endorsement underscores the importance of firsthand experience with AI solutions, as those in leadership positions recognise their potential for delivering significant ROI.
Ilana Shabtay, Vice President of Marketing at Fullpath, remarked, "The automotive industry is poised for a major leap forward with increased AI investment, which can fundamentally change how dealerships operate and interact with customers." Her commentary reflects the broader industry perspective, which sees the anticipated growth in AI budgets as a testament to dealers’ dedication to adopting modern technology that enhances their competitive edge and success in an evolving marketplace.
As car dealerships prepare to embrace these technological advancements, the impact on business practices and customer experiences is poised to be profound. This shift towards AI integration in the automotive industry represents not just a trend, but a fundamental transformation in how dealerships operate in an increasingly digital world.
Source: Noah Wire Services