Survey Reveals Expected Surge in AI Budget Allocations Among Car Dealerships for 2025

A recent survey report titled “The 2025 State of AI Adoption in Car Dealerships” reveals a substantial commitment to integrating artificial intelligence (AI) in dealership operations. With an overwhelming 81% of dealerships expecting their AI budgets to rise in 2025, the automotive industry is on the cusp of a technological transformation aimed at enhancing operational efficiency and customer experience.

The survey, conducted in October 2024, highlighted that 34% of dealerships are currently utilizing AI for marketing and advertising—a trend projected to expand significantly in the coming years. Among those dealers leveraging AI, 55% are already experiencing a remarkable increase of over 20% in their return on investment (ROI). As a direct response to this, these dealers are choosing to further expand their investments in AI, underlining their growing confidence in the ability of AI technologies to drive success, profitability, and overall enhanced customer experiences.

Key findings from the report include:

• Current AI Implementation: 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.
• Budget Increases: A notable 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.
• Leadership Advocacy: 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 report also identifies data visibility and integration as significant challenges as dealerships strive to leverage AI effectively. Acknowledging these hurdles is critical for maximizing the benefits of AI in enhancing customer experiences.

“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,” said Ilana Shabtay, VP Marketing at Fullpath. “The anticipated growth in AI budgets underscores dealers’ commitment to leveraging technology for enhanced competitiveness and success in the evolving marketplace.”

As the automotive landscape evolves, the commitment to AI deployment will be pivotal for dealerships looking to gain a competitive edge in a rapidly changing market.

For further information or to obtain a copy of the full report, please visit here.