Artificial intelligence is the hottest technology in business right now, and car dealers are ready to buy in.

Literally.

According to a survey commissioned by customer data platform Fullpath, 81% of dealerships expect to increase their budget for AI in 2025.

The survey of 200 dealership senior decision-makers, conducted in August and September by Global Surveyz Research, found more than half of the respondents (52%) anticipate a budget increase of 11% or more, and 18% foresee a jump of more than 25%.

Fullpath’s report, The 2025 State of AI Adoption in Car Dealerships, also showed 95% of dealers see AI technology as an important factor in the future success of their dealerships, with 43% calling it “very important.”

The report said that result “highlights the widely held belief that AI will play a critical role in shaping the future of car dealerships by enhancing operational efficiency, customer service and overall competitiveness.”

Indeed, more than 80% of the dealers surveyed said they either are already using AI technology, are currently in the process of implementing AI or are planning to do so in 2025.

AI was tied for the most cited factor set to influence dealership success in 2025 among dealers surveyed, selected by 16% of the survey respondents to match changes in consumer behavior.

“The automotive industry is poised for a major leap forward with increased AI investment, which can fundamentally change how dealerships operate and interact with customers,” Fullpath vice president of marketing Ilana Shabtay said in a news release. “The anticipated growth in AI budgets underscores dealers’ commitment to leveraging technology for enhanced competitiveness and success in the evolving marketplace.”

The survey found customer relationship management to be the current most popular use of AI in dealerships, with 61% either using it now or installing it. Other top uses include sales and customer service (29% in use, 27% in deployment), fraud detection (29% in use, 27% in deployment) and predictive maintenance (26% in use, 34% in deployment).

All of the dealerships currently using AI technology reported an increase in revenue over the past 12 months, with 37% saying revenue was up 20%-30% and 18% saying revenue rose more than 30%. Fullpath said that outcome is directly responsible for the coming increases in AI budgets.

The report also noted 72% of the survey respondents strongly agreed that the use of AI in dealerships enhances jobs but does not replace them.

The full report can be downloaded here.