78% of Dealerships Unsure How to Leverage Predictive Data; Only 5% Utilize AI for Key Operations
Lotlinx, the auto industry’s leading VIN-specific data company for dealership inventory management, announced results of its latest industry survey, revealing substantial challenges faced by auto retailers in adopting artificial intelligence (AI) and predictive data technologies. The online survey commissioned by Lotlinx in December 2024, was presented to more than 2,500 dealers across the U.S. and underscores a critical gap in the industry’s ability to effectively utilize advanced technologies that could enhance operational efficiency and profitability.
The findings are concerning, in which 78% of dealerships reported being unsure about how to effectively use predictive data, indicating a significant knowledge gap that hinders their ability to modernize operations. Furthermore, only 5% of dealers are leveraging AI and predictive data for predictive maintenance in service departments, and an equally low 5% are using these technologies for inventory management and pricing optimization. This underutilization highlights a missed opportunity for dealerships to enhance their service offerings and improve financial performance.
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Despite the potential benefits of AI and predictive analytics, many dealerships remain entrenched in outdated practices. The survey revealed that while 21.36% of dealerships use AI for customer relationship management (CRM) and lead scoring, the majority are not capitalizing on these tools to improve customer engagement or operational efficiency.
The survey also identified significant barriers to adoption. Integration with existing systems (19%), staff training and adoption (18%), and data quality or accuracy issues (21%) were cited as the primary challenges preventing dealerships from fully embracing predictive analytics.
Looking ahead, although there is some interest in technological investment—with 80% of dealers indicating plans to invest in AI in 2025—the current state of adoption remains alarmingly low. Many dealers still rely on traditional methods for decision-making, with a significant portion making choices based on historical trends or gut instinct rather than data-driven insights.
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“These survey results reveal a stark reality, as many dealers are struggling to leverage predictive analytics effectively,” said Len Short, Executive Chairman of Lotlinx. “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.”
Lotlinx will be discussing these survey results at the upcoming NADA 2025 show in New Orleans from January 23-26 at booth #803. The findings emphasize the urgent need for dealerships to adopt advanced technologies and seek partnerships that can facilitate effective implementation.
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Source – PR Newswire
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