Cox Automotive dealer survey: 82% use AI but ‘still early in the journey’
Graphic courtesy of Cox Automotive.
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Brian Wieland, who is senior director of used vehicles at Van Horn Auto Group, might have summarized dealerships’ necessary journey from dot matrix printers in the finance office to tools based on artificial intelligence.
“AI is no longer something we are testing. It has become part of how we operate every day,” Wieland said in news release from Cox Automotive, which highlighted its AI in Auto Retail Tracker. It’s a survey of dealership decision-makers and in-market vehicle shoppers on AI adoption, impact, and attitudes.
The first set of findings released this week combined survey results from the first two quarters of this year.
“Across both sales and service, AI helps us engage customers, answer questions, and make sure opportunities are not missed. We are still early in the journey, but the impact is already significant, and we are excited about what lies ahead,” Wieland said about activities at Van Horn Auto Group, which is celebrating its 60th anniversary. The group has 14 franchised dealerships and two other rooftops in Wisconsin.
Reflecting what’s happening throughout the car business, Cox Automotive highlighted its AI in Auto Retail Tracker established an industry baseline with these primary findings:
- Consumers use AI to prepare for dealership interactions. Shoppers are adopting AI faster than dealers are adjusting to it, and they’re using it to show up better informed for the conversations that still happen in the store.
—24% say AI helps them feel more prepared when working with dealerships.
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—63% say they will definitely or probably use AI on their next vehicle purchase.
- Adoption is high, but measurement is lagging. Many dealers are using AI without a clear way to see what it’s delivering.
—82% of dealers use AI today.
—Top three AI uses: automating routine and/or complex tasks (40%), coordinating customer follow-up (40%), generating content and creative (38%).
—69% of dealers expect AI to drive sales and revenue growth, but about 1 in 3 either aren’t measuring AI’s impact or have no clarity on how they’re measuring—so most can’t yet see what it’s delivering. Only 22% of AI users report seeing that growth so far.
—The most commonly cited benefits of AI were improved customer experience (28%) and employee productivity (26%).
- Dealers working with an external AI partner were more likely to report positive AI-related outcomes. They are:
—More likely to say they are using AI optimally (66% vs. 46% without).
—More likely to express high confidence in AI outputs (30% versus 8% without).
—More likely to report they’ve experienced sales and revenue growth from AI (36% versus 21% without).
Jim Urso is director of pre-owned operations at Bob Loquercio Auto Group, which operates 17 franchised stores in Illinois and Indiana with many near Chicago.
“AI is going to be very beneficial in the future as far as the lead funnel goes. It’s going to take a lot of the guesswork out of determining who’s an actual strong lead, so our people can spend their time and focus on the person who’s most likely to purchase a vehicle,” Urso said in the Cox Automotive news release.
The Cox Automotive AI in Auto Retail Tracker surveyed 504 franchise and independent dealers and 1,505 consumers planning to purchase a vehicle within 12 months in Q1, and 483 dealers and 1,502 consumers in Q2.
“AI is changing where car shopping starts, and it’s bringing dealers a more informed, more decisive buyer,” said Lori Wittman, president of retail solutions at Cox Automotive. “Consumers have already changed how they shop, and dealers are well positioned to meet them where they are.”
For more insights, visit coxautoinc.com/retail/ai-in-auto-retail-tracker.