A growing number of automakers are integrating AI into their vehicles to improve everything, from safety to voice assistant systems—but what are the cons to the wider adoption of the tech to improve in-vehicle experiences?
First things first: Over the past two years, Volkswagen, Mercedes-Benz, and BMW have been at the forefront of discussions centered on in-vehicle AI adoption—with a growing number of other automakers and software-providers steering into the lane.
Volkswagen—the first automaker to adopt ChatGPT in its vehicles—uses the artificial-intelligence-based chatbot to improve its IDA voice assistant via Cerence Chat Pro.
Mercedes-Benz has added ChatGPT-40 features and new conversational capabilities to the MBUX Virtual Assistant powered by Google Cloud’s new Automotive AI Agent— debuting on the fourth-gen CLA.
BMW will begin integrating AI into its vehicle models sold in China later this year to enhance BMW’s Intelligent Personal Assistant in partnership with the Chinese startup, DeepSeek.
The automotive artificial intelligence (AI) chatbot market—driven by increasing industry demand for enhanced in-vehicle experiences and advanced driver-assistance systems (ADAS)—is estimated to grow at a Compound Annual Growth Rate (CAGR) of 25% from 2025 to 2033, reaching approximately $25 billion by 2033.
What they’re saying: “Vehicle experiences are undergoing a fundamental transformation as generative artificial intelligence (GenAI) capabilities create opportunities for more natural, intelligent interactions,” said Sushant Dhamnekar, Asif Khan, and Weibo Gu from AWS.
Between the lines: Artificial intelligence certainly presents some intriguing opportunities when it comes to in-vehicle experiences, many of which align perfectly with consumers’ growing usage and interests in the tech.
52% of American adults now use AI large language models (LLMs) like ChatGPT—with 65% of users indicating they have had back-and-forth conversations with LLMs.
60% of consumers now consider AI features important when choosing their next smartphone, including 21% who say AI features are very important.
63% of America car buyers want agents to help them optimize routes with in-car navigation based on their personal preferences.
Weighing it all: Factors like the growing popularity of ChatGPT and the applications of the tech that interest consumers speak to the appeal of in-vehicle AI applications, especially among younger consumers. However, it also raises some concerns for automakers, dealers, and consumers alike—namely the costs associated with vehicle features and functions that rely on artificial intelligence.
Artificial intelligence can add anywhere from a few hundred dollars to a few thousand dollars to the cost of a vehicle—depending on the degree of the application or complexity of the system.
The average transaction price for a new vehicle—which was $48,799 in May—is already pushing a lot of consumers to delay their car purchase or look for an alternative.
Projections of a 5% increase in the prices of vehicles not subjected to the full 25% tariff, and price increases of between 10% and 15% for cars directly impacted by the 25% levies will make purchasing a new vehicle even tougher for many buyers.
Other challenges include data privacy, driver distraction, software reliability, and the hassles associated with the over-the-air updates typically associated with tech-based vehicle features and functions.
Bottom line: The cons of integrating more AI into vehicles outweigh the appeal and desire for any features tied to artificial intelligence, especially if consumers associate the tech with a higher sticker price.
Finding innovative ways to reduce the costs of AI in-vehicle applications, addressing concerns like data privacy, and being strategic in how the tech is positioned in the market with car buyers could prove pivotal to an automaker’s success with artificial intelligence.
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