Dealer use of artificial intelligence is widespread, but clear performance measurement and preparation for AI-assisted vehicle search are lagging. Cox Automotive's new AI in Auto Retail Tracker reports that 82% of franchised and independent dealers use AI in some form, while about one-third of AI-using dealers either are not measuring its impact or do not have a clear view of how it is being measured.

The August 11 release combines a March baseline with a May follow-up. Cox surveyed 504 dealership decision-makers and 1,505 next-12-month vehicle shoppers in the first quarter, then 483 dealers and 1,502 shoppers in the second quarter. Dealer data were weighted by dealership size.

Dealers using AI82%Q2 franchised and independent dealers
Shoppers likely to use AI63%Next vehicle purchase
Adapting to AI search29%Actively adjusting or in process
AI users reporting sales growth22%Versus 69% expecting it

Why it matters

The adoption number does not establish that dealerships are receiving financial value from AI. Cox reports that 69% of dealers expect AI to increase sales or revenue, but only 22% of AI users said they had experienced that result. Improved customer experience and employee productivity were the most commonly reported benefits, at 28% and 26% respectively.

That gap makes measurement an operating priority. A store can use several AI-enabled products and still lack a defensible answer about which outcome changed, whether the change was incremental and what staff time, vendor cost or customer risk accompanied it.

Shopper adoption is moving faster than dealer search preparation

Cox reports that 63% of in-market shoppers definitely or probably plan to use AI during their next vehicle purchase. AI tools were cited by 36% as a vehicle-research channel, close to the 38% citing automotive-specific websites.

Only 29% of dealers said they were actively adapting or in the process of adapting to AI-powered search, down from 32% in the first quarter. The share recognizing a need to adjust but not yet starting increased from 26% to 32%. Those results point to a discoverability problem: vehicle facts, store policies and customer answers must be both accurate and accessible when shoppers ask an AI service instead of beginning on a dealership website.

The customer is using AI to prepare, not simply avoid the store

Among shoppers using AI, 26% said it helps them generate questions for dealers and 24% said it helps them feel more prepared at the dealership. Avoiding dealership staff was the least-cited relationship benefit at 17%.

Sales and BDC teams should expect more customers to arrive with AI-generated comparisons, payment assumptions and feature claims. The useful response is a fast, source-backed explanation that corrects errors without dismissing the shopper's research.

Partner comparisons show association, not causation

Cox found that dealers with an external AI partner were more likely to report optimal use, confidence in AI output and sales or revenue growth. The sales-growth comparison was 36% among partner-supported dealers and 21% among dealers without such a partner. Only 13% of dealers reported having an outside AI partner.

Those comparisons pool the first two survey waves and do not prove that hiring a partner caused the stronger results. Dealers choosing outside support may differ in budget, management discipline, technology maturity or willingness to measure performance. The figures can justify better vendor questions, but not a guaranteed return claim.

What dealerships should do

Management should inventory every AI-enabled product in use and assign one business outcome, one baseline and one accountable owner to each material use. Sales and service tools can be measured through response time, appointments kept, conversion, gross, customer satisfaction and staff time; content tools need accuracy, correction and approval measures as well as engagement.

Marketing and product teams should test the questions shoppers are likely to ask AI services about the store's inventory, pricing approach, service capabilities and policies. Any weak or incorrect answer should be traced back to missing, inconsistent or inaccessible public information rather than treated only as a search-ranking problem.

Vendor reviews should require clear data permissions, source visibility, escalation paths, output monitoring and a way to separate the product's contribution from seasonal or market changes.

AI-assisted reporting disclosure

This article was researched and generated with AI-assisted systems using the sources listed below. Dealership Tech Report applies automated accuracy and risk checks, but errors or later changes remain possible. Verify time-sensitive information with the cited primary sources before acting.

Methodology note

Cox Automotive conducted and published the commercial research. Q1 included 504 franchised and independent dealership decision-makers and 1,505 next-12-month vehicle shoppers; Q2 included 483 dealers and 1,502 shoppers. Dealer data were weighted by dealership size. Q2 figures should not be treated as universal dealership benchmarks, and pooled partner comparisons do not establish causation.

References

Cited references

  1. Cox Automotive AI in Auto Retail Tracker release Company research release; published Aug. 11, 2026
  2. Cox Automotive AI in Auto Retail Tracker methodology and findings Company research page; Q1 fielded Mar. 2026 and Q2 fielded May 2026