Dealers are still failing to fully capitalize on the growing popularity of AI as a go-to resource for buyers shopping for their next vehicle, according to Cox Automotive.
The details: The new Cox Automotive AI in Auto Retail Tracker—a survey of dealership decision-makers and in-market vehicle shoppers on AI adoption, impact and attitudes—reveals a growing gap between retailers and AI-powered car shoppers.
The report found that 63% of shoppers plan to use AI to shop for their next vehicle, but only 29% of dealers have started adapting to AI-powered search.
It also found that while most dealers are using AI, one in three either aren't measuring its impact or lack clarity on how they're measuring it.
Why it matters: As more buyers turn to AI to research and narrow their vehicle choices, dealers that fail to adapt their digital strategies risk losing visibility and potential customers before they ever reach the showroom.
Between the lines: Cox's report also highlights the potential benefits of partnering with companies more experienced with the technology, with dealers using external AI partners reporting stronger outcomes than those going it alone.
Retailers using an external AI partner are more likely to say they are using the technology optimally, 66% vs. 46% among those without a partner.
Those dealers are also more likely to express high confidence in AI outputs, 30% vs. 8% among retailers tackling AI on their own.
Retailers working with an external AI company are more likely to report sales and revenue growth from the technology, 36% vs. 21% among those without a partner.
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What they’re saying: "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," said Jim Urso, director of pre-owned operations at Bob Loquercio Auto Group, per a press statement.
Bottom line: The widening gap between AI-powered shoppers and dealer adoption underscores the need for retailers to move beyond simply using the technology to measuring its impact and optimizing how it supports search visibility, lead generation and sales.
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