Two thirds of UK motorists now use artificial intelligence (AI) during the car-buying process, signalling a fundamental shift in how customers research and choose vehicles.
New research from Close Brothers Motor Finance, based on the views of 2,000 UK motorists, shows that 66% of motorists already incorporate AI into their buying journey, with 60% expecting it to play a core role in their next vehicle purchase.
Buyers are using AI mainly to handle complex and time-consuming research.
A third use it to compare vehicle specifications, while 31% rely on it to check safety ratings and owner reviews.
Around 28% use AI to estimate total cost of ownership (TCO), including insurance, fuel and maintenance, and 23% use it to benchmark fair market pricing.
AI is also influencing powertrain decisions, with 16% of motorists using the technology to compare the environmental impact of electric vehicles and petrol models.
Local expertise and emotional intelligence cannot be replaced
John Cassidy, sales managing director at Close Brothers Motor Finance, said: “The shift towards heavy AI usage in the car buying process cannot be overlooked.
“However, while AI provides the data, it currently lacks the localised expertise and emotional intelligence to fully understand customer needs and explain the various options available.
“While it handles the ‘what’ and ‘how much’ elements with relative ease, it is less thorough with the ‘why’ factor, and cannot offer the peace of mind that comes with physical components such as speaking to an expert or inspecting a vehicle in person.”
Cassidy said the findings underline the evolving role of dealerships as customers arrive better informed but still in need of guidance.
He said: “This is why dealers still have a crucial role to play, though the value may have shifted.
“Customers now arrive at showrooms with more data than ever before, so dealers should be prepared for this, and be able to interpret this effectively and offer expertise and reassurance that AI simply cannot deliver.”
He said finance remains an area where dealers can add particular value, with only 15% of buyers currently using AI to research finance options.
Cassidy added: “Dealers will need to support this transition through advanced data tools and regulatory guidance, ensuring that while AI might help a customer start their journey, a human expert backed by the right training is there to cross the finish line.”