Winning over tomorrow's car buyers with agentic AI

May 14, 2025

Winning over tomorrow's car buyers with agentic AI

A new breed of consumer, comfortable with AI, will soon control most of the world's spending. We explain how carmakers can be ready and gain a competitive edge.

This content was originally featured in an Embedded Computing Design article in April 2025.

A new age of consumers is emerging. Armed with artificial intelligence tools and expecting seamless, innovative experiences, these consumers will soon dominate the automotive market. These AI-savvy consumers are poised to redefine how products, including cars, are browsed, bought and used, making automakers rethink traditional business models.

According to our latest research report, New minds, new markets, this shift is massive and urgent. A "potentially multitrillion-dollar force has been gaining momentum: consumers experimenting with AI" outside the boardroom, the report notes, with enormous implications for every industry.

Automotive leaders must recognize the importance of the emerging consumer-driven trend to retain their competitive edge. Preliminary data indicates that consumers embracing AI could represent up to 55% of total expenditures by 2030, affecting a majority of purchases, including vehicles. Currently, approximately 25% of consumers are AI enthusiasts. In the United States alone, these consumers are expected to generate $4.4 trillion in spending by 2030.

Tomorrow's car buyers will heavily leverage AI at every step, and catering to their mindset will be crucial for automakers. Driving this radical shift in consumerism is the rise of agentic AI, where intelligent agents handle commerce on behalf of consumers.

The agentic internet and future trends

The agentic internet will transform the automotive market. Instead of simply using AI as an assistant, consumers will delegate tasks to AI agents acting independently. For example, a personal AI could analyze a user's transportation needs, budget and preferences, then negotiate with dealerships' AI systems to find the best vehicle, arrange a test drive, secure financing and even handle trade-ins on its own.

In this scenario, automakers would need to evaluate myriad new factors, such as how to market to an algorithm and how to ensure your brand is recommended by an AI concierge. To stay competitive, automakers must open their digital product data and AI services. Make them interoperable, for seamless interactions with consumer agents. This may involve standardizing vehicle information for AI consumption, participating in multi-brand AI marketplaces, or even offering branded AI assistants to customers.

How can automakers evolve?

By focusing on trust, control, and convenience, brands can build long-term loyalty with AI-savvy customers. Adapting to AI-powered consumers is not just a marketing exercise, it's a technology mandate. Automotive companies must invest in AI and digital capabilities across the board to meet new expectations, which means rethinking technology strategy in several critical areas:

• AI-driven discovery and personalization. Just as search engine optimization was critical in the internet era, AI optimization will be essential in the age of digital assistants. Automakers must ensure their products are visible to AI agents by feeding vehicle information into recommendation engines and creating voice-interactive product guides. Machine learning can analyze customer data and recommend the ideal car model or maintenance plan, increasing conversion rates and customer delight.
  
  
• Connected vehicle ecosystems. Modern cars are increasingly becoming connected devices, constantly streaming data about performance, location and usage. Automakers can leverage this connectivity to create value-added services, such as predictive maintenance systems that alert drivers to potential issues before they become problems. Connecting cars with smartphones, smart homes, and even smart city infrastructure will be crucial, allowing automakers to transform cars from one-time purchases into platforms for continuous engagement.
  
  
• Autonomous mobility and AI in the product. While fully self-driving vehicles are still evolving, features like advanced driver assistance systems and AI-based safety systems are mainstream today. Automakers must invest in more sophisticated autonomous technologies to meet convenience and safety standards. Even before full autonomy is achieved, AI simulations and design tools are reducing development costs and time, providing automakers with a competitive edge.
  
  
• Operational efficiency and aftermarket reinvention. AI can streamline manufacturing, supply chains and aftermarket services using agentic AI. Predictive maintenance, while improving customer satisfaction, can also optimize parts inventory and service center operations by interacting with individual vehicle AI. Agentic AI also opens the door to new business models, such as subscription-based features or software upgrades tailored to individual drivers.

By embracing AI-driven innovation and building the technical foundation for agent-based commerce, automotive leaders can secure a competitive advantage and thrive in the AI-powered future.

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