Car dealerships are heavily committed to AI

Car dealerships are increasing their commitment to using AI in operations, with 81% expecting their AI budgets to increase in 2025.

This is a key finding from Fullpath’s “The 2025 State of AI Adoption in Car Dealerships” survey conducted in October. The data also showed that 34% of retailers use AI for marketing and advertising and 55% of those who use AI see an increase in return on investment of over 20%.

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

Further findings include:

• The survey shows that 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 increase by 11-25%, while 18% predict increases of more than 25%. Only 7% believe their budgets will not change.
• CEOs (25%) and dealer bosses (22%) are particularly vocal about expanding AI budgets and emphasize the importance of first-hand experience with AI solutions and their return on investment.

“The automotive industry is poised for a major leap forward with increased AI investments that can fundamentally transform the way dealerships operate and interact with customers,” Ilana Shabtay, VP of marketing at Fullpath, said in the press release. “The expected growth in AI budgets underscores dealers’ commitment to leveraging technology to be more competitive and successful in the evolving market.”