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How AI Impacted the Automotive Industry in 2025

2025 was the year AI went from a buzzword to a business tool, especially in the automotive industry. After years of speculation, AI started delivering measurable results across manufacturing, retail, and customer service. From streamlining inventory to transforming how customers shop, AI isn’t just part of the conversation; it’s shaping how dealerships and automakers operate.

Manufacturing Got Smarter (and Faster)

Automakers didn’t waste time putting AI to work on the factory floor. General Motors tapped into AI early in the year to help dealerships stock faster-selling vehicles and catch software glitches before they caused problems. Ford rolled out its in-house AiTriz system to over 90 manufacturing stations globally, including 35 in North America, to identify defects more accurately and improve quality control.

BMW, Audi, and Mercedes-Benz followed suit with AI-powered systems to boost production efficiency and precision. The result? Cleaner operations, fewer defects, and a smoother path from assembly line to showroom.

Dealership Operations Got an Upgrade

AI didn’t just stay in the factory. Dealerships jumped on the AI train with tools that simplified service scheduling, automated phone calls, and streamlined back-office tasks.

Reynolds and Reynolds introduced Spark AI, a unified data layer that powers smart recommendations and actions without duplication. Its virtual agent, Rey, is now helping teams handle a wide range of processes efficiently.

Companies like CDK Global, Tekion, and Cox Automotive also launched new AI tools in 2025, making it easier for retailers to manage everything from customer service to inventory with fewer bottlenecks and better data. One standout trend? Agentic AI – sophisticated, self-driving systems that automate specific dealership tasks with minimal human input.

Car Buyers Got a Digital Assistant

On the consumer side, AI made the buying process smarter and a little more fun.

CarEdge launched its AI Negotiator in July 2025, giving shoppers a tool that haggles on their behalf for a $40 monthly fee. By September, more than 2,000 users had signed up, showing just how ready people are to let AI handle the tough conversations. Meanwhile, 97 percent of consumers in a Cars.com national survey said AI would impact their purchase decisions. Whether it’s choosing a car, planning financing, or finding the best service center, AI is becoming a trusted co-pilot.

Big Data, Big Opportunity

While AI made huge strides in 2025, experts agree that the best is yet to come. One hurdle? Data gaps between OEMs and dealers. Closing those gaps will unlock even more potential, from predictive maintenance to hyper-personalized marketing.

Still, the foundation is solid. Tools like “vibe coding” (AI that builds software from simple prompts) could eventually give dealerships the power to create their own systems, with no developer required.

Where Strong Automotive Comes In

AI’s evolution in 2025 was impressive and actionable. And that’s where Strong Automotive comes in. We help dealerships harness next-gen digital tools (including AI) to get real results. Whether it’s building smarter campaigns, improving operational efficiency, or optimizing your online-to-showroom experience, our team knows how to turn innovation into ROI.

You don’t need a developer to keep up with AI; you need a strategic partner who knows how to apply it. Strong Automotive is that partner.

John Paul Strong

John Paul Strong combines his two decades of automotive marketing experience with a team of more than 150 professionals as owner and CEO of Strong Automotive.

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