2025: Value creation with AI in automotive

2025: The Year AI Comes of Age

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Artificial intelligence (AI) has been a hot topic for years, but we’re only just scratching the surface of its potential. According to a 2024 BCG research, so far only 26% of companies have advanced beyond the proof-of-concept stage to generate value with AI, and a mere 4% is systematically building cutting-edge AI capabilities and scaling them across the organisation.

In 2025, we’ll see a shift in how businesses use AI, with a focus on generating real value and integrating it into every aspect of operations.

Key AI Trends to Watch in 2025

  • Enhanced multimodal AI models like OpenAI’s GPT-4 successor and Google’s Gemini will revolutionise scientific research and creative applications.
  • Smaller, efficient AI models like Google’s Gemini Nano and Apple Intelligence features will democratise AI by enabling powerful AI tools to run on local devices.
  • Synthetic data will be used to train AI models, addressing challenges related to data scarcity and sensitivity.

AI's Impact on the Automotive Industry

In the automotive industry, AI is already transforming design, engineering, supply chain, and manufacturing. In 2025, we’ll see even more advanced applications of AI, such as:

  • AI-powered design tools that can reduce design iterations and development cycles.
  • AI-optimised supply chains that will improve planning, logistics, and inventory management.
  • AI-driven manufacturing processes that will increase efficiency, quality, and innovation.

AI for Enhanced Customer Experiences and Improved Operational Efficiency

AI will also transform the automotive customer experience. AI agents will improve efficiency and address industry-specific challenges.

At CES 2025, enhanced user experiences were at the centre of the strategic development for most automakers. Particular emphasis was put on in-vehicle voice assistants and futuristic displays, boosting driver convenience and showcasing AI’s integration into the automotive experience. AI-led solutions also took the scene at the recent NADA Show 2025, as key in delivering a truly customer-centric approach in a context of profitability and sustainable growth.

  • Timely and Efficient Lead Conversion: AI agents can respond to leads instantly, answer customer inquiries, and schedule appointments 24/7, improving customer engagement and lead conversion.
  • Increased Sales Efficiency: AI can analyse customer data to recommend optimal sales strategies and streamline processes, leading to better customer targeting and higher conversion rates. This can also be leveraged for targeted after-sales maintenance campaigns.
  • Operational Cost Reduction: AI automates repetitive tasks, allowing staff to focus on relationship-building activities. This not only reduces operational costs but also improves overall dealership efficiency, from stock management to sales enablement.

The Future of AI in Automotive

As AI continues to evolve, we can expect to see even more transformative applications in the automotive industry. While the mainstream deployment of connectivity and autonomous driving largely relies on customer acceptance and trust in the technology, AI-powered vehicles are poised to offer the highest level of personalisation, enhanced safety features, and a superior driving experience.

Conclusion

2025 is poised to be a pivotal year for AI, with businesses finally realising its true value and potential. The automotive industry is at the forefront of this transformation, and we can expect to see AI drive significant innovation and growth in the years to come.

Check out how MotorK is leveraging AI to take dealership operations to the next level and help automotive retailers build value for their customers: click here to discover more about our AI-powered solutions.

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