A transformative shift is underway in the automotive industry as a new generation of consumers, equipped with advanced Artificial Intelligence (AI) tools, begins to dominate the market. These AI-savvy buyers are reshaping the ways cars are researched, purchased, and utilised, compelling automakers to rethink their traditional business models.

According to a recent report titled New Minds, New Markets—AI and Customer Experience, this trend is gaining significant momentum. The report highlights that consumers experimenting with AI outside corporate environments represent a "potentially multitrillion-dollar force" with far-reaching implications across industries. Specifically for the automotive sector, preliminary data suggests that by 2030, up to 55 percent of consumer expenditures could originate from AI-empowered customers, potentially encompassing a majority of vehicle purchases. Currently, about 25 percent of consumers identify as AI enthusiasts, with those in the United States alone expected to drive $4.4 trillion in spending by 2030.

The future car buyer will heavily depend on AI throughout every stage of the purchasing journey. Driving this radical change is the rise of "Agentic AI"—intelligent digital agents capable of managing commerce independently on behalf of consumers. Unlike AI that assists, these agents take autonomous action to deliver personalised and efficient shopping experiences.

The concept of the “agentic internet” promises to further transform the automotive marketplace. For instance, a personal AI could assess a customer’s transportation requirements, budget constraints, and vehicle preferences, then negotiate directly with dealership AI platforms to select the best car, schedule test drives, arrange financing, and even manage trade-ins without manual intervention.

Such developments present new challenges for automakers, who must now consider how to appeal to algorithms rather than individual buyers directly. Questions arise regarding how to ensure brands are favoured by AI concierges and how to open digital product data and AI services for seamless interoperability with consumer agents. This might require standardising vehicle information for AI use, engaging in multi-brand AI marketplaces, or introducing proprietary AI assistants as part of the car-buying ecosystem.

For automotive companies aiming to stay competitive, evolving with these AI-driven consumer behaviours is paramount. This evolution entails focusing on building trust, offering consumer control, and enhancing convenience, thereby fostering long-term loyalty among AI-fluent customers. The transition extends beyond marketing strategies, demanding a reimagining of technology initiatives across several core areas:

  1. AI-Driven Discovery & Personalisation: Much like search engine optimisation was once critical, automakers must now prioritise “AI optimisation” to ensure their products are visible and attractive to AI agents. This involves integrating comprehensive vehicle data into recommendation engines and developing voice-interactive product guides that facilitate AI-enabled customer engagement. Machine learning can be leveraged to analyse consumer data, ensuring tailored model or maintenance plan recommendations that drive higher conversion rates and customer satisfaction.

  2. Connected Vehicle Ecosystems: Modern vehicles increasingly act as connected devices, continuously relaying data on performance, location, and usage. Automakers can harness this connectivity to offer value-added services such as predictive maintenance alerts that pre-emptively notify drivers of potential issues. Furthermore, linking cars with smartphones, smart homes, and urban infrastructure could transform vehicles from one-time purchases into ongoing engagement platforms.

  3. Autonomous Mobility and AI Integration: Although fully autonomous vehicles remain a developing technology, current offerings already include advanced driver assistance systems (ADAS) and AI-enabled safety features. Automakers are encouraged to invest in more advanced autonomous capabilities to meet rising expectations for convenience and safety. Additionally, AI-powered simulations and design tools are streamlining vehicle development, cutting costs and accelerating time-to-market.

  4. Operational Efficiency and Aftermarket Innovation: Agentic AI can optimise manufacturing and supply chains, while enhancing aftermarket services by predicting maintenance needs and improving parts inventory management. This AI capability could also give rise to innovative business models such as subscription-based features or personalised software upgrades tailored to individual drivers.

Aditya Pathak, Vice President and Head of Automotive, Transportation & Logistics at Cognizant, emphasises that by embracing AI-driven innovation and establishing a solid technical foundation for agent-based commerce, automotive leaders can secure a competitive advantage and thrive in an AI-powered future.

As consumers increasingly rely on intelligent AI agents to manage vehicle purchases and ownership, the automotive industry faces a pivotal moment. Adapting to this agentic AI-driven landscape may redefine how cars are marketed, sold, and experienced in the coming decade.

Source: Noah Wire Services