Car dealers have been slow to learn about and use artificial intelligence and predictive data in their businesses, according to a new survey commissioned by inventory management platform Lotlinx.

The online survey of more than 2,500 dealers across the U.S., conducted last month, shows a gap in the auto retail industry’s ability to effectively use advanced technologies that could enhance operational efficiency and profitability, Lotlinx said in a news release.

The survey found 78% of responding dealerships said they were unsure about how to effectively use predictive data, and a mere 5% said they’re using AI and predictive data for predictive maintenance in service departments or for inventory management and pricing optimization.

In addition, just 21% of dealerships use AI for customer relationship management and lead scoring.

The company said those numbers show “a significant knowledge gap” resulting in missed opportunities for dealerships to enhance their service offerings and improve financial performance.

“These survey results reveal a stark reality, as many dealers are struggling to leverage predictive analytics effectively,” Lotlinx executive chairman Len Short said. “With such a high percentage of dealerships unsure about utilizing predictive data, there is a clear need for education and partnership with experienced providers like Lotlinx to help bridge this gap as we progress through 2025.”

The survey identified significant barriers to adoption, with data quality or accuracy issues (21%), integration with existing systems (19%) and staff training and adoption (18%), cited as the primary challenges preventing dealerships from fully embracing predictive analytics.

It also revealed many dealers are still relying on traditional methods for decision-making. When dealers who are not using predictive analytics were asked how they make decisions, the top responses were making choices based on the dealership’s historical trends and “gut instinct”, both at 29%.

That said, dealers are looking into adding advanced technology to their operations in the near future. Some 80% of the respondents said their dealership has plans to invest in and implement AI in 2025 and 11% of those who are already using AI said they plan to expand it into new applications, while 61% said they are very or somewhat likely to invest in predictive data technology in the next 12 months.

The results of the survey can be downloaded here.