May 16, 2025 - When it comes to artificial intelligence (AI) and cars, automakers get all the attention — autonomous vehicles, industrial robots, and predictive maintenance systems. However, there is a lot happening at the dealership level too.

Auto dealers are increasingly using AI to improve their internal workflows. Twenty-eight percent of dealers have already implemented at least one AI-based tool in their operations, and 68% said it helped them meet their financial goals, according to CDK research. The industry-wide talent shortage in the accounting department will make it essential for dealerships to implement some form of AI in the future.

In this article, we will explore how AI can improve your dealership’s performance in various areas.

AI Supports Fixed Operations

The fixed operations department is one of clearest opportunities to implement AI in automotive dealerships, as it enables every other department. According to CDK Research, 68% of dealerships believe their sales department would benefit the most from AI adoption because they presently struggle to convince these employees to update their software and leave meaningful notes. AI can improve nearly every part of the sales process, from lead qualification and to pricing, by calculating costs, documenting decisions, and creating an audit trail. The result can lead to higher close rates, shorter sales cycles, and a better employee experience. By automating the sales process and taking human error out of the equation, you can increase back-office efficiency in contracting, rebate qualifications and reduction of manual input become. Many vendors are already teaming up with manufacturers to implement cross functional communication between AI systems and database to add further efficiencies.

AI tools have the potential to knit together many financial and accounting workflows that are cumbersome. Some dealer management software can already use AI to auto-generate reports and accounting software offers AI features that can auto-reconcile transactions. Some AI tools can link your Microsoft Excel data to dealer systems or other documents, to ensure numbers are accurate.

For example, the versatile Microsoft Excel add-on DataSnipper can automatically match your Excel data to supporting documents so any calculations staff run match what’s actually in the contract, and vice versa. It can effectively check everyone’s work across the dealership. It also captures that data to create an audit trail. By eliminating human error, it saves the accounting office time on correcting errors.

Consider investigating AI tools to:

• Automate tracking and categorizing expenses
• Reconcile inventory levels with sales data
• Cash and credit line reconciliations
• Reconcile payroll and commissions
• Produce weekly performance indicators
• Track and report on budgets

Of course, AI is not yet ready to operate autonomously. You still need a financial specialist to review its work and slowly fold tools into workflows one at a time, with a long period of oversight where you run time-intensive quality control checks.

AI Can Help Manage Inventory

Managing inventory is a constant challenge. Stock too many vehicles beyond 60 selling days and you tie up cash and risk depreciation. Stock too few, and you lose potential sales and hurt your reputation. While daily supply is based more on the supply chain and demand, AI tools are tracking this. AI can help dealerships make more accurate stocking decisions for better forecasting and more efficient inventory planning by:

Predicting Demand More Accurately

AI algorithms can forecast demand by analyzing various data points, such as historical sales, regional market trends, and customer behavior. This helps dealerships make more informed stocking decisions, like prioritizing high-demand vehicles while reducing investment in slow-moving inventory. Tools like CDK, Reynolds and Reynolds, and DealerTrack by Cox Automotive support this process by identifying underperforming vehicles, allowing dealers to adjust pricing, marketing, or allocation strategies and minimize capital tied up in unsold stock.

Some of these tools can also automatically update inventory as soon as you sell a vehicle, keeping records accurate and synchronized without manual effort. This automation reduces costly errors, such as selling unavailable vehicles or missing sales due to outdated listings. Dealers can also set custom thresholds to trigger restocking, reducing the risk of overstock or stockouts.

Adjusting Pricing in Real Time

Some AI tools can dynamically adjust vehicle pricing based on local demand, competitor listings, and each vehicle’s condition. Platforms such Dealersocket by Auto/Mate use machine learning to recommend optimal price points, helping dealers move inventory faster while protecting profit margins.

Accounting and Office Applications

Microsoft Co-Pilot is revolutionizing the way offices organize and track workflow. Among many applications the AI tool helps office staff by organizing data, recommending calendar times for meetings, and reducing manual organization of large data sets. It can also summarize and benchmark dealer financial statements with machine learning and customized output. As organizations grow and task lists become larger and larger, we see this tool as a way to save time and improve office workflow.

AI Still Requires Industry-Specialized Accounting

While AI can handle some aspects of automotive dealership operations like data entry and invoice management, it cannot handle more complex work. Tasks such as detailed financial analysis, tax planning, and long-term financial decisions still require the knowledge and judgment of experienced accountants.

Powered by the industry specialty of our Automotive Dealerships Practice, Citrin Cooperman’s Digital Services Practice can help your business unlock the full potential of its systems and drive operational success. Our team works with dealerships to combine useful technology with professional accounting services. We help with financial planning, tax compliance, and overall business strategy to help your dealership grow.

To learn more about our services, please contact Craig Todderud or Philip Craft.