AI-driven customer experience: Enhancing personalisation in automotive industry

Imagine stepping into a car where the seat adjusts to your favourite position, the climate control adapts to your comfort level, and the infotainment system cues up your go-to playlist. This is no longer the stuff of science fiction. It’s the new reality of the automotive industry.  

From driverless cars to robots on the factory floor, artificial intelligence (AI) is shaping experiences that are deeply personal, highly effective, and effortlessly intuitive. What was once a distant dream is now a transformative reality, and it’s clear: the future of mobility is being written by tech. 

AI as your automotive assistant 

The integration of AI into the automotive sector is revolutionising the way we interact with vehicles. Cars today are no longer mere machines; they are intelligent companions. AI-powered systems now analyse driver preferences and habits to create deeply personalised experiences. 

In-car AI systems adjust to your preferences—whether it's fine-tuning climate control, suggesting routes based on previous trips, or even setting reminders for maintenance. On the other hand, dealership AI tools are revolutionising customer support by instantly responding to queries about vehicle features, financing options, and warranties. These advancements eliminate wait times. 

Moreover, rather than relying solely on scheduled maintenance, AI allows for predictive maintenance by monitoring specific data from connected vehicles, such as engine health, mileage, and driving patterns.   

Harnessing AI to elevate automotive retail 

This impact extends beyond enhancing customer experiences—it is revolutionising how businesses operate within the automotive space. By embedding AI across the entire customer journey—from initial browsing and financing to post-purchase services—automotive companies are crafting highly personalised, seamless interactions that resonate with individual needs and preferences.  

As consumer expectations are shifting, AI gets to play a prominent role in automotive retail. A recent study showed that 54% of consumers expect their technological experience to improve over the next three years, with nearly half anticipating advancements in their shopping experiences as well. To stay relevant, automotive brands are leveraging AI’s capabilities to create customer journeys that are not only smoother but also aligned with personal preferences. 

For instance, AI-driven recommendation engines provide tailored suggestions based on a customer’s browsing patterns, location, and purchasing history, helping them make quicker and more confident choices. Additionally, automotive original equipment manufacturers (OEMs) are integrating AI into their platforms to provide relevant information faster and more accurately, saving customers time and streamlining the browsing experience. 

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Personalised sales and financing solutions 

The sales and financing process has often been seen as cumbersome and complex. AI is simplifying this by automating tasks and reducing friction in traditionally time-consuming processes. In practical terms, AI can help finance teams access real-time credit scores, loan eligibility, and payment plan suggestions based on individual financial data, resulting in personalised financing options. By instantly adjusting options based on trade-ins or down payments, AI provides a transparent view of financing options, increasing trust and confidence in the buying process. For finance teams, this also means improved efficiencies, with AI analysing data from multiple sources to offer accurate, up-to-date insights—benefiting both dealerships and customers by simplifying a traditionally challenging experience. 

Elevating customer experience 

Beyond mere efficiency gains, AI is a catalyst for a more personalised, immersive, and streamlined customer experience. Advances in AI technology are exciting and have the potential to transform the customer experience in the coming future and companies are fast adapting to this change. By 2026, 20% of inbound customer service interactions are expected to be handled by machine “customers” or AI-driven systems that can initiate maintenance reminders or even negotiate upgrades on the customer’s behalf. This shift makes service more accessible and positions automotive brands as proactive advisors, building stronger, ongoing relationships with their customers by ensuring that vehicles are kept in optimal condition. 

Hyper-personalised marketing and sales pitches 

AI has enabled a major shift from broad, traditional segment-based marketing to hyper-personalisation. Rather than casting a wide net, automotive brands now deliver marketing messages tailored to individual consumer behaviours and preferences. This approach is increasingly vital in a landscape where brands need to differentiate themselves amid an influx of AI-generated content. AI identified the ideal time and method to reach each customer by analysing purchase histories, browsing habits, and demographic details.

Personalised follow-ups and targeted offers can keep potential buyers engaged throughout the decision-making process. By maintaining a personalised touch, companies can build stronger relationships with customers, ultimately increasing the likelihood of a successful purchase and fostering long-term loyalty.  

Conclusion 

For automotive brands, staying ahead in the AI race is essential to elevate customer experiences and solidify their relevance in a highly competitive, tech-driven market. AI-driven customer experience strategies are helping automotive brands deliver more connected, seamless, and personalised journeys. With the growing ageing population, the demand for automation is expected to rise. By 2030, highly autonomous vehicles could account for 10-15% of new car sales. OEMs and suppliers are already manoeuvring and investing in autonomous vehicles and the AI that will power them. As AI transforms traditional sales models into dynamic, interactive processes, automotive companies are setting new standards for convenience and satisfaction that resonate with the digital-first customer. 

(Anurag Jain is the Co-founder and Chief Operating Officer of autotech company CarDekho Group.)