AI isn’t here to replace people—it’s here to make them more efficient. For car dealerships, that means cutting time spent on repetitive tasks, automating processes, and allowing staff to focus on what really matters: selling cars and building relationships. But let’s be clear—there’s no consumer demand for AI itself. Shoppers aren’t asking for AI over a human; in fact, when they need something specific, they seek human interaction. AI is a tool for efficiency, not a replacement for expertise.
AI Makes Dealerships Faster, Not Colder
Dealerships are betting big on AI – 81% of dealerships are increasing AI budgets in 2025 (source: Fullpath), expecting it to boost efficiency and sales. But here’s the problem: AI chat tools don’t close deals—people do.
Conversion rates for AI-only chats still aren’t performing as high as people-backed chats. CarNow’s people-backed chat sees anywhere between 70-80% conversion rates, a rate AI only backed chat is nowhere near touching.
Why is this happening? Because dealerships are implementing chat without asking or thinking about how and when customers want AI involved. The reality? Consumers really aren’t demanding AI at all. They DO want their questions answered quickly with 24/7 availability, and AI chat does that. When consumers have more complex questions –and we’re talking about more complex than “how many paper cups can I fit in the trunk of a 2024 Honda Accord,” because what consumer is actually asking that? – AI cannot replace the human touch and empathy required for these situations.
The more complex the conversation is, the more a human is needed. AI should speed up responses and handle routine tasks—but when it comes to information that impact the final decision, customers want a person. The winning strategy isn’t AI vs. human—it’s AI + human.
AI + Human Advantages for Dealerships
✅ Automate Repetitive Tasks – AI can handle scheduling, follow-ups, and lead prioritization, freeing up staff for high-value interactions.
✅ Speed Up Decision-Making – AI analyzes customer data to suggest inventory strategies and pricing adjustments.
✅ Support, Not Replace, Human Engagement – AI-powered tools help sales teams respond faster and more effectively, without removing the personal touch.
✅ Save Time with Customer Summaries – AI can instantly surface past conversations and key details, so your team knows exactly where a customer left off in their journey. No more asking the same questions twice.
Dealers who take the AI + human approach will see faster response times, more engaged customers, and better close rates—all without losing the personal connection that makes a sale happen. The future isn’t AI taking over—it’s AI making your team stronger, faster, and more informed than ever.
Consumers Use AI for Efficiency Too
Shoppers aren’t specifically demanding AI—they’re looking for speed and convenience. Take a look at how consumers themselves are using AI in their daily lives, and you’ll have a better idea of how to implement it at your dealership. Today’s consumers use AI for responding to texts and emails, planning travel itineraries, and answering financial questions.
Knowing that consumers are using AI for convenience, project-management help, and to help consolidate and perfect their own copy and ideas, dealerships should see that their AI implementation aligns with this. And this insight is why CarNow’s future enhancements to our AI-powered solutions are focused on empowering the retail journey, NOT replacing BDCs or salespeople.
The Future: Smarter, Not Colder
The best AI in automotive retail won’t be the one that replaces humans—it’ll be the one that supports them. AI should make dealerships more efficient by eliminating tedious tasks, surfacing valuable customer insights, and ensuring no lead falls through the cracks. But at the end of the day, it’s people who build trust, close deals, and create loyal customers. Dealerships that embrace AI as an assistant—not a replacement—will gain the biggest advantage.
The future isn’t AI vs. humans; it’s AI working with humans to drive better results. CarNow’s AI-powered solutions are built with this balance in mind, ensuring dealerships can leverage AI for efficiency while keeping the human connection that makes sales happen. AI should empower—not replace—the teams that make dealerships successful.