How AI Tools Are Accelerating Growth For Auto Dealerships

AI In Auto Industry: AI shaping the future of autonomous mobilityETAuto

AI For Cars: Examples of AI in the Auto Industry

Preventive maintenance, as opposed to scheduled or reactive vehicle maintenance, has always been an industry goal. While the potential benefits of AI in automotive are significant, there are also challenges that need to be addressed. Motional, a Hyundai x Aptiv joint-venture startup, has been testing a robotaxi of its own for the last year. “As you make systems more complicated, it brings in additional avenues to be exploited by the cyber criminals because every complexity that you add into the system, that opens the door for potential exploitation,” Dr Esgin told us. When car makers introduced ‘digital signatures’ in the 2000s to try and allow just the permitted person(s) to authenticate themselves, thieves hacked this too – even going so far as to chop off fingertips to use on fringerprint scanners. ‘DiPilot 300′ adds a forward-facing Light Detection and Ranging (LiDAR) sensor and 300 Tera Operations Per Second (TOPS) of peak computing power, while the top-tier ‘DiPilot 600’ adds two additional LiDAR sensors and 600 TOPS of peak computing power.

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The 2026 Volvo EX90 and 2026 Polestar 3 have received the new Nvidia Drive AGX Orin supercomputer chip with more processing power, with the 2026 Volvo ES90 also set to get it next. Some models from Swedish brands Volvo and Polestar have also recently announced an upgrade to gain more capable AI tech. Outside of Mercedes and Tesla, brands such as BYD are introducing new-generation ADAS in China – including on more affordable models. While Tesla Full Self-Driving (FSD) Beta hardware is installed in all new models locally, you can’t use it yet. As it stands today, Tesla Autopilot and Enhanced Autopilot modes are legal in Australia and available to local Tesla owners, but Full Self-Driving (FSD) Beta is not. Matt Hobbs, CEO of the Motor Trades Association of Australia, said his organisation has just released a consultation on a new code of conduct between repairers and insurers because there are “already issues … where crash repairers and insurance companies don’t always agree”.

AI For Cars: Examples of AI in the Auto Industry

From using AI-powered simulation to shape the aerodynamics, crashworthiness and assembly methods of future cars still on the drawing board to refinements in production to supply chain management, AI is being used to optimize every aspect of vehicle manufacturing. A vehicle needn’t be fully autonomous to be enhanced by the capabilities of AI, which is also making advanced driver assistance technologies safer and more convenient. Features like adaptive cruise control, lane departure warning and automatic emergency braking are combining and becoming increasingly sophisticated, thanks to AI-powered algorithms. The auto retail industry is undergoing a major evolution, driven largely by cutting-edge advancements in AI. As today’s car buyers demand faster service, digital convenience and tailored experiences, AI is positioning itself as an important engine of innovation for dealerships aiming to stay competitive and relevant. Drawing from my experience in the automotive industry, let’s take a closer look at how this technology is changing the sector.

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AI For Cars: Examples of AI in the Auto Industry

Gu Jianmin, CTO of Valeo China, said in addition to electrification, driving assistance, and smart cabins, in-car infotainment systems and personalized visual elements, such as headlights, are becoming more important. As the auto retail industry grows increasingly competitive, many dealerships are turning to AI to not only improve their operations but also boost their bottom line. But while AI is revolutionizing operations, remember the importance of following up effectively. By blending AI tools with strong sales practices, you can give your auto dealership a leading edge.

AI For Cars: Examples of AI in the Auto Industry

As well as voice assistants, apps, and anti-collision technology in our cars all involving AI, there are also ways it is being used to improve traffic flow in our major cities, and even to repair broken roads. Far from being a far-flung Terminator-style future, artificial intelligence – or AI – is with us now and steeped throughout the automotive industry. Intel showcased some of these capabilities at the event, including its support for voice and gesture recognition. It explained that the dGPU will enable car makers to equip their vehicles with an assortment of cameras and 4K resolution displays that serve as combined entertainment and productivity hubs for passengers. Fortunately AI is coming to help improve the process of getting vehicles serviced and repaired.

Put your brand in front of 10,000+ tech and VC leaders across all three days of Disrupt 2025. Currently, most automakers have not fully achieved absolute separation of software and hardware, she added. Al Sefati, CEO at Clarity Digital Agency is an omni-channel digital marketing strategist & AI enthusiast helping brands grow. However, this technological advancement must be intrinsically linked with a robust cybersecurity strategy to protect this vital sector. It’s therefore critical to secure all traffic to make sure that only the right people have access to the right components at the right time. Whereas annual or mileage-based maintenance schedules are an attempt to balance the need for preventing breakdown while also avoiding the costs of unnecessarily frequent maintenance, it is still only an educated gamble.

AI For Cars: Examples of AI in the Auto Industry

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As in many industries, AI is particularly good at predictive maintenance, using sensor and vehicle diagnostic data to predict when vehicle components are likely to fail. It also helps to optimize the supply chain for parts that might need replacement before those parts become unavailable. Drivers (or passengers — Brady said they are not voice-matching to whoever owns the phone running the Android Auto experience) will be able to ask Gemini to send texts, play music, and basically do all the things Google Assistant was already able to do. The difference is users won’t have to be so robotic with their commands thanks to the natural language capabilities of Gemini. In his view, everyone has some connection to AI, as most people already use ChatGPT-type functions.

In 2025, AI is poised to play a significant role in shaping the future of transportation, promising to revolutionize the way we design, manufacture and interact with cars, trucks and SUVs. AI dashboard technology has the potential to minimize distractions and mitigate the consequences of lapses in attention, particularly as driver assistance and autonomous technologies continue to evolve. Ltd., demonstrated an in-car AI assistant that’s based on locally hosted large language models and powered by Intel’s chip. The AI assistant can even engage with bored drivers in more general, leisurely chats about other topics, such as what they can expect to find at their destination. AI is helping to optimize the supply chain to ensure the availability of critical parts at the right time while minimizing unnecessary inventory and handling product quality issues. AI is helping by predicting demand, optimizing inventory, and managing logistics.

  • As more and more car buyers shop online in a significant move away from traditional showroom-first experiences, AI is growing in importance as a tool dealerships can use to adapt to this digital-first environment.
  • Artificial intelligence is set to accelerate change across the automotive industry, as companies face mounting pressure to innovate under stricter regulations, tighter budgets, skills shortages, and rising competition.
  • An example is that headlights are no longer just lighting tools but essential carriers for design and information interaction.
  • In 2025, Waymo expects to expand service to more cities, including Atlanta and Austin in partnership with Uber.

According to a Reuters report at the time, the start-up, named Sensigo, said its platform will eventually be able to predict problems before they occur reducing costs for customers while also improving profits for the business. “The dealerships are so busy with the amount of phone calls that they’re getting, they can’t actually handle it. Chatbots and virtual assistants have been around for several years now, though AI-driven assistants being used in dealerships is an area of growth. The Japanese car maker invested in AI-centric UK tech company Secondmind after entering into an agreement with the firm in late 2020.

“We can book that test drive right there with the customer rather than a sales person having to call you back and find out when you are available,” said O’Halloran. “So it will give you a call and say something like, ‘I noticed you made an inquiry three months’ ago – are you still looking buying a car? Then it will say, ‘How about we send you a brochure, and would you like us to organise a test drive for you?

Intel describes the new Intel Arc for Automotive dGPU as an open, flexible and scalable platform solution for onboard AI. It builds on the company’s Intel SDV System-on-Chip, which is an entry-level processor that powers basic AI features in vehicles. According to Intel, the dGPU provides additional horsepower to support more “premium in-car AI capabilities.” For instance, it can power in-car assistants capable of assisting drivers in navigation and answering general questions, and deliver enhanced entertainment for passengers. As in all industries, automotive manufacturers and dealers are making use of AI-powered chatbots and natural language interaction systems to improve customer support. Customers can interact with smart chatbots to ask questions about vehicle purchases, schedule service appointments, or help with vehicle usage and troubleshooting.

Begin with focused implementations—such as deploying AI chat tools for online leads—before expanding to broader applications. This gradual approach should allow your staff to adapt and give leadership time to refine processes. If an autonomous vehicle does not react appropriately in a traffic situation, it can be retrained, but many tests are still needed to ensure that these vehicles can operate accident-free in everyday use,” said Laszlo Palkovics. We developed and continue to improve the test track in Zalaegerszeg so we can test scenarios that may occur with self-driving cars.