Dealers embrace AI as finance and pricing lead adoption – but trust remains a major barrier
UK vehicle dealerships are increasingly turning to artificial intelligence (AI) to drive operational efficiency, with motor finance, vehicle pricing, and customer service leading the wave of digital adoption across forecourts.
New research from Close Brothers Motor Finance (CBMF) reveals that AI has transitioned into a mainstream operational tool for motor traders. Nearly two-thirds (65%) of UK motor dealerships are already actively using AI tools in their business today, with a further third (32%) planning to introduce them in the future.
Among dealerships utilising or planning to adopt AI, commercial and financial functions represent the most popular use cases. Supporting customer finance options leads the way, with 40% of AI-adopting dealers using or planning to use AI in this area. Vehicle pricing and valuation follow closely behind at 37%, while 31% deploy AI for customer service tasks such as automated chatbots. Additionally, a little over a quarter (28%) use the technology for risk and compliance functions including fraud detection and finance checks.
The research shows AI is also gaining steady traction across broader dealership operations. Around one in four adopting dealers report using or planning to use AI for targeted marketing and advertising (27%), lead generation and sales insights (26%), stock management and forecasting (24%), and aftersales servicing (23%).
Despite near-universal openness across the sector, the CBMF research highlights a distinct group of holdouts. Just 4% of surveyed dealerships have ruled out using AI tools altogether. Among this non-adopting minority, 71% state they simply do not trust the technology, making mistrust by far the biggest barrier to total industry integration. Furthermore, over half (57%) believe AI would not provide any meaningful commercial benefits.
Rather than technical limitations, other concerns cited by non-adopting dealers stem from habit, accuracy, and perceived relevance. The same number (29%) of non-adopters say they prefer traditional manual processes, are unfamiliar with AI tools, feel AI is not relevant to their specific business needs, worry about the accuracy of AI outputs, or believe implementation costs outweigh potential benefits. Surprisingly, just 14% cite data privacy or cyber security risks as their main concern.
John Cassidy, managing director at Close Brothers Motor Finance, commented: “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.”