A survey of 500 car dealers in the U.S., commissioned by dealer tech company Phyron, found that half of dealers expect AI to be actively selling vehicles by 2027, while 100% believe it will happen by 2030, AMOnline reports. Respondents said AI’s greatest potential was in after-sales, video production and financing.
The survey also found that 87% believe some dealership roles will be fully replaced by 2035, while 57% predict greater efficiency due to AI and 54% expect lower costs.
Not all dealership jobs are under immediate threat, however. Phyron CEO Mattias Kellquist noted that workers handling complex tasks — such as managing multiple information systems — remain safe for now.
“Current AI tools aren’t built to replace humans entirely,” he said in the report. “AI still struggles with complex tasks needing real-time judgment and coordination between teams. We’re a few years from AI fully handling nuanced, high-pressure jobs common at dealerships. But AI can already deliver certain efficiencies and cost savings beyond human capabilities.”
Kellquist added that while AI could potentially buy and sell cars independently by 2027, current data quality, systems and implementations are not mature enough. For now, “We’ll increasingly work alongside AI at every stage, from vehicle acquisition to sales and aftersales service,” he said.
Dealers are especially excited about AI’s potential in after-sales. 38% highly rated AI’s ability to track vehicle usage and send service reminders. Another 37% emphasized AI’s potential in streamlining financing tasks like credit checks, e-signatures and determining terms. Automated video production followed closely at 35%, with dealers recognizing its importance in the sales process.
Meta studies support this, showing that video ads outperform all other formats, increasing conversion rates by 17% compared to photo-and-text-only ads. Currently, dealers spend about 12 hours producing each inventory video. Phyron estimates that AI automation could save dealers up to $400 per car in production costs.
The survey was conducted between March 21 and March 27, 2025. Phyron, based in Sweden, says it works with more than 4,000 dealers across 35 countries. It maintains that its AI video tools can increase conversion rates by 50% to 100%. Since 2019, it has been developing fully automated AI video software tailored for auto dealers.
