Technology

Car dealerships committing big to AI

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December 4, 2024

Car dealerships are ramping up commitment to using AI in operations with 81% expecting their AI budgets to rise in 2025.

That's a prime finding from Fullpath's "The 2025 State of AI Adoption in Car Dealerships," a survey conducted in October. The data also revealed that 34% of dealerships are using AI for marketing and advertising and amongs those using AI 55% are experiencing an increase of over 20% in return on investment.

Fullpath is a customer data platform specifically for the automotive industry.

Additional findings include:

• The survey shows customer relationship management leads the way in current AI usage, followed by sales and customer service, fraud detection and predictive maintenance.
• 34% of respondents expect their AI budget to rise by 11-25%, while 18% predict increases of more than 25%. Only 7% anticipate no changes to their budgets.
• General managers (25%) and dealer principals (22%) are particularly vocal about expanding AI budgets, underscoring the importance of firsthand experience with AI solutions and their return on investment.

"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," Ilana Shabtay, VP marketing at Fullpath, said in the press release. "The anticipated growth in AI budgets underscores dealers' commitment to leveraging technology for enhanced competitiveness and success in the evolving marketplace."