AI in Automotive: What’s Working and What’s Not in 2026
Cars today are no longer just machines. They are connected systems constantly generating data.
Artificial intelligence is helping the automotive industry make sense of that data. But while both OEMs and dealerships are adopting AI, they may not be using it in the same way. In this episode of The Seezoned Crew, Melissa Khomutin from our US team shares how each side is approaching AI and what that means for the future.
OEMs and dealerships both use AI but they’re playing completely different games. What’s the biggest difference you’re seeing?
The difference comes down to what each side is trying to achieve. OEMs are focusing on how cars are built. They are using AI in manufacturing, design, and testing to improve efficiency and catch potential issues early. This allows them to prevent problems before vehicles even reach customers and improve how cars are developed overall.
Dealerships are focusing on the customer side. They are using AI to answer questions, guide buyers through their journey, and support sales and service interactions. AI also helps them manage data and improve internal workflows so teams can respond faster and work more efficiently. So while both are using AI, one is focused on improving the product, and the other is focused on improving the customer experience.
Are OEMs using AI to predict the future of cars, while dealerships are just trying to sell more cars today?
In a way, yes, and it comes down to how each business operates. Dealerships work with what they have today. Their goal is to sell and service the vehicles in their inventory, so their thinking is naturally more short-term and focused on immediate results.
OEMs work on much longer timelines. They are thinking about what cars will look like in the next few years and what technology needs to be built into them. Their focus is on planning, innovation, and future demand rather than immediate sales. Both approaches are necessary, but they shape how each side uses AI.
Do you think dealerships are missing out because they’re too focused on the short-term, while OEMs take a long-term AI approach?
Not necessarily. Dealerships operate on a transactional model, so their focus on selling and servicing current inventory makes sense. What matters more is how quickly they adapt. The industry is shifting, with new models like direct-to-consumer and changes in how vehicles are serviced. This is creating pressure on dealers to rethink how they operate.
Rather than missing out, it becomes about staying open to change. Dealers that are willing to test new technology, adjust their processes, and move faster are the ones more likely to stay competitive as things evolve.
When it comes to AI, who’s more innovative, the OEMs building the cars or the dealerships selling them?
Innovation is happening on both sides, but in different ways. OEMs are using AI to rethink how vehicles are designed and tested. They can model different scenarios, experiment with design choices, and improve their car-building process without relying on traditional methods.
Dealerships are using AI to respond faster and handle customer interactions more efficiently. They are using AI to engage customers online, answer questions instantly, and support marketing and sales efforts more effectively. So it is not about one side being more innovative than the other. It is about how each side is applying AI to solve the problems that matter most to their business.
Will AI eventually make OEMs and dealerships think alike, or will their approaches always be fundamentally different?
There may be some alignment, especially in how both sides approach customers and digital experiences. As AI becomes more common, both OEMs and dealerships are trying to figure out how to use it effectively, and that naturally brings some overlap in thinking.
At the same time, their roles are still very different. OEMs focus on building and innovating vehicles over long timelines, while dealerships focus on selling and servicing those vehicles in their local markets. As a result, their approaches will not fully merge, even as both continue to adopt AI.
Hot Takes
With news circulating about Toyota and Mazda co-developing hybrid sports cars, will AI drive more partnerships or more competition between brands?
Jad: AI could make collaborations easier by helping brands analyze shared data and identify where their strengths complement each other.
Melissa: AI will not remove competition, but it can make partnerships more efficient by helping companies evaluate collaboration opportunities more clearly.
Multiple recalls are hitting U.S. cars. Is AI catching hidden faults or is it creating new headaches?
Melissa: AI uncovering more issues is actually positive because it allows manufacturers to detect problems earlier and prevent them before they reach customers.
Jad: With connected vehicle data, AI helps manufacturers process large amounts of information and identify patterns much faster.
Is AI really poised to take over jobs?
Jad: AI is currently more of an efficiency tool that automates repetitive work but still requires human oversight.
Melissa: Like previous technologies, AI will change how people work by removing manual tasks while humans focus on strategy and relationships.