Almost two-thirds of UK dealerships are already using artificial intelligence, with finance and vehicle pricing emerging as its leading applications.
Research from Close Brothers Motor Finance (CBMF) found 65% of dealers currently use AI tools, while another 32% plan to introduce the technology.
This means 97% of dealerships are either using or considering AI, suggesting the technology has moved into the mainstream across motor retail.
Finance and pricing lead AI use
Among dealers using or planning to adopt AI, 40% expect the technology to support customer finance options. Vehicle pricing and valuations followed at 37%, while 31% identified customer service functions such as automated chatbots.
Risk and compliance applications, including fraud detection and finance checks, were selected by 28% of AI adopters.
Dealers are also using or considering the technology for targeted marketing and advertising, cited by 27%, and lead generation and sales analysis at 26%. Stock management and forecasting accounted for 24%, while 23% identified aftersales servicing as an application for AI.
The results suggest dealers are prioritising AI in commercial areas where it can influence deal conversion, pricing decisions and operational efficiency.
Trust holds back small minority
Just 4% of the dealerships surveyed said they had ruled out using AI entirely. Within this small group, 71% identified a lack of trust in the technology as their main concern, while 57% did not believe AI would deliver meaningful commercial benefits.
Other barriers included a preference for manual processes, unfamiliarity with AI tools, concerns about output accuracy, implementation costs and a belief that the technology was not relevant to the business. Each was cited by 29% of non-adopters.
Only 14% of this group identified data privacy or cyber security risks as a principal concern.
John Cassidy, managing director at Close Brothers Motor Finance, said: “It is encouraging to see dealers up and down the country embracing AI to improve efficiency in a way that adds genuine value to the customer journey. As AI continues to evolve, we’re committed to helping dealers understand its potential and build the confidence to adopt it in a way that works for their business.
“Ultimately, any use of AI must always have the customer at its heart. By using these tools to refine processes and create smoother customer journeys, rather than simply as a way to cut corners, dealers can build genuine trust and strengthen lasting customer relationships.”
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