How Automotive Retailers Can Drive Success in 2025 and Beyond with AI
At Impel, we envision a future where automotive retailers leverage AI as a central nervous system that works with their existing tech stack and processes to manage the entire customer lifecycle. This future is closer than many might think. With advancements in AI and growing adoption across the industry, dealerships are already delivering a more unified and personalized customer experience. Some are using AI to leverage the insights from their Customer Data Platforms more effectively.
There’s no better place to delve into the future of AI in automotive than at the National Automobile Dealers Association Conference. Hear what Impel customers and executives had to say about how AI will continue to shape automotive in 2025 and beyond:
The Current Momentum for AI Adoption in Dealerships
AI has a role to play in every department of a dealership. It enables immediate, personalized engagement at a scale and level of consistency that humans alone cannot achieve. At the same time, it frees teams up to focus on more meaningful and impactful tasks. The numbers show that dealerships who have adopted the technology aren’t looking back, and the masses have begun to follow:
Automotive AI adoption at dealerships – by the numbers:
- 75% of dealerships are moderately to extremely familiar with AI68% reported that AI has positively impacted their operations, helping them achieve financial objectives, enhance customer satisfaction and improve internal workflows
- 27% of dealerships plan to adopt AI within the next year
- The global Automotive Al market is projected to grow from $2.3 billion USD in 2022 to $7 billion USD by 2027
Source: CDK 2024 AI in Automotive Insights and Innovations Survey
Why AI is a Must-Have for Auto Dealerships in 2025 and Beyond
Automotive retailers face a pivotal decision: stick to traditional methods of lead management that rely on team availability, or embrace AI to deliver 24/7 availability and instant responsiveness across the customer lifecycle. Here’s why more dealerships are choosing to embrace the future of AI in the automotive industry:
- Meeting Consumer Expectations: Today’s car buyers want tailored, responsive service both online and in-store. AI enables retailers to deliver on these expectations at scale.
- Revenue Growth Opportunities: Automotive AI enables dealerships to deliver hyper-personalized outreach and engagement that increases customer lifetime value.
- Operational Scale: By intelligently automating time-consuming workflows, dealerships can scale faster without additional headcount.
The benefits are clear in theory, but how does Automotive AI deliver in reality? Just look at the difference in performance of AI-enabled dealerships vs. those who have yet to adopt Automotive AI:
- AI-enabled dealerships achieve 27% higher showroom appointment set rates
- Dealerships using Automotive AI drive a 26% lead-to-sale conversion rate compared to the traditional groups not leveraging AI
- Customers of AI-enabled dealerships showed a 24% increase in repurchase rates, highlighting the value of AI in driving long-term loyalty
Source: Comparative Analysis: The Transformative Power of AI in Dealership Sales and Service Operations
Addressing the Big Question: Will AI Replace Jobs in Automotive Dealerships?
The real value of AI isn’t in replacing personnel, but in enabling greater team productivity by delegating routine tasks like question handling, pre-qualification, and appointment-setting. When AI and human staff work together, AI can orchestrate a unified customer journey, and prepare human staff with all the details they need to provide stand-out experiences in the showroom and service drive.
Dealerships are becoming increasingly skilled at building AI-enabled teams, transforming the way they engage with customers. Soon, the gap in customer experience between AI-driven dealerships that meet customers where they are and traditional dealerships will be impossible to ignore. Those able to adapt to customer preferences and leverage AI effectively will reap the rewards.
To address the growing need for standardized education regarding AI, Impel has teamed up with RockED, a leading automotive learning management provider, to introduce the industry’s first-ever Automotive AI certification program. Read more in Auto Remarketing.
The Road Ahead
The adoption of AI is no longer a luxury but a necessity for dealerships aiming to thrive in an increasingly technology-enabled and customer-centric market. To capitalize on its full potential, dealerships must leverage automotive AI to:
AI-powered solutions enable dealerships to turn operational challenges into opportunities for growth. By investing in the technology, dealerships can enhance efficiency, elevate customer experiences, and achieve sustainable profitability.
Is your dealership ready to take the next step? At Impel, we don’t just talk about innovation—we shape it. Schedule a demo today to explore how Impel AI can maximize your dealership’s customer lifetime value and prepare your business for the AI-driven future.
