Artificial intelligence (AI) is transforming the car buying experience in the U.S., with dealers reporting revenue gains and planning increased AI investments for 2025.
According to a recent survey, 80% of car dealers are utilizing AI for customer support, personalized marketing, and digital advertising optimization. This technology analyzes customer data to tailor offers and enhance digital tools, giving shoppers greater control.
David Boice, CEO of Team Velocity, stated, "With AI platforms, dealerships gain a comprehensive view of the buying experience, allowing them to accurately predict who is most likely to buy and when." This predictive capability enables dealerships to prioritize leads, leading to more effective sales strategies.
Companies like CarMax and BMW are also leveraging AI. CarMax offers personalized vehicle recommendations, while BMW employs AI for predictive maintenance, alerting customers about service needs before problems arise.
Tricolor, a consumer development financial institution, uses AI to help Hispanic customers secure car loans by targeting online ads effectively, resulting in 80% of leads generated through digital campaigns.
Despite the rise of AI, traditional sales methods remain important. Boice noted that nearly 30% of consumers prefer a hybrid car-buying experience that combines technology with personal interactions.