Key Takeaways:
- 63% of in-market car shoppers plan to use AI for their next vehicle purchase, yet only 29% of dealerships have adjusted their strategy to account for AI-powered search behavior, according to the Cox Automotive AI in Auto Retail Tracker (Q1–Q2 2026)
- 82% of dealerships use AI for internal operations, but one in three cannot measure its actual impact on sales — creating a growing blind spot as shopper expectations shift
- Dealerships working with external AI partners report 66% optimal AI usage and 36% sales growth, compared to 46% and 21% respectively among those operating without outside support
The car buying process has changed quite a bit over the past few years. Before a customer steps onto a lot or submits an inquiry, there is a real chance they have already compared trims, cross-referenced pricing, and prepared a list of questions, all with the help of an AI tool. The dealership they walk into may have no idea.
That gap between what shoppers are doing and what dealers are ready for is a real issue in auto retail right now. New research from Cox Automotive’s AI in Auto Retail Tracker, drawn from surveys of nearly 1,000 dealership decision-makers and 3,000 in-market vehicle shoppers, puts hard numbers to a dynamic that many in the industry have sensed but struggled to quantify.
How Car Shoppers Are Using AI to Research Vehicles
The consumer side of AI usage has become extremely clear. Sixty-three percent of in-market shoppers say they will definitely or probably use AI on their next vehicle purchase. AI tools now rank at 36% as a vehicle research channel, nearly level with automotive-specific websites at 38%. This means a substantial portion of buyers are starting their search somewhere other than the platforms dealers have spent years optimizing for.
What shoppers are doing with those tools matters just as much. Twenty-six percent use AI to generate questions before talking to a dealer. Twenty-four percent say it helps them feel more prepared in dealership conversations. Notably, only 17% — the lowest-cited benefit in the study — say they use AI to avoid dealership staff. Shoppers are not trying to cut dealers out. They are trying to show up better informed, which creates an opening for dealers who recognize the role AI is now playing in the customer experience.
“AI is changing where car shopping starts, and it’s bringing dealers a more informed, more decisive buyer,” said Lori Wittman, president of Retail Solutions at Cox Automotive Inc. “Consumers have already changed how they shop, and dealers are well positioned to meet them where they are.”
Why Most Dealerships Haven’t Caught Up to AI-Informed Buyers
While there is real opportunity for dealers, that reality has not yet materialized. Around 82% of dealerships report using AI in some capacity, but the work is concentrated internally. Forty percent automate everyday tasks. Forty percent coordinate customer follow-up. Thirty-eight percent generate marketing content. These are operational improvements. They’re useful, but not oriented toward the shopper who arrives already knowing what they want.
Only 29% of dealers have made meaningful adjustments to accommodate AI-powered search behavior. More telling, the share who know they need to act but have not started rose from 26% to 32% between Q1 and Q2. Even if dealers are aware there is a gap, the gap is not closing.
The Measurement Problem Holding Dealers Back
The disconnect between customers and dealers isn’t the only issue dealers have dealt with while onboarding AI. Sixty-nine percent of dealers believe AI will drive sales and revenue growth. Only 22% have actually seen that growth materialize. Meanwhile, one in three dealers either are not measuring AI’s impact or have no clarity on how they are measuring it.
Missing clear tracking, dealers cannot distinguish between approaches that generate results and those that do not — leaving strategy essentially guesswork.
What Separates Dealerships That See Real Results
The data points to one reliable differentiator for dealerships, though: external partnership. Only 13% of dealerships currently work with an outside AI partner, but those that do perform markedly better. Sixty-six percent report using AI optimally, compared to 46% without external support. Confidence in AI outputs jumps from 8% to 30%. Sales and revenue growth from AI rises from 21% to 36%.
The reason is pretty simple. Dealers who surround themselves with people who specialize in this area do not have to figure it out alone. They can focus on running the business while the mechanics of implementation are handled by people who do this every day. While not a surefire track to success, not forcing internal teams to run the dealership and manage the tech stack has its benefits.
The Dealership That Wins Is the One That Meets Buyers Where They Are
The informed buyer is real and is walking onto the showroom right now. The dealers positioned to close them are the ones who have stopped treating AI as a tool to mess around with and started thinking about how it shapes the conversation before a customer ever arrives.
Closing the gap between how shoppers use AI and how dealerships respond to it is a clear opportunity. The research is there. The direction is clear. It’s now up to dealers to figure out what’s next.
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