The UK motor trade has always been about execution. From building customer trust on the forecourt to delivering outstanding after-sales service, it’s execution, not invention, that has defined the winners.
Richard Harpin, founder of HomeServe, put it bluntly in his book How to Make a Billion in Nine Steps: “Success often comes from adapting proven ideas better than others.” It’s a lesson our sector should heed as artificial intelligence begins to reshape the way we do business.
AI is no longer hype. Google Cloud’s ROI of AI 2025 report reveals that more than half of organisations using generative AI have already deployed AI agents. These are systems that don’t just assist, but act independently under human guidance. For dealerships, this means moving beyond the basic website chatbot to intelligent agents that can qualify leads, optimise stock, and even forecast workshop utilisation.
The returns are hard to ignore. Three-quarters of executives report positive ROI on at least one AI use case, while almost nine in ten early adopters say they’re already seeing gains. In a sector where margins are thin, this is not just useful, it’s vital.
Harpin’s lessons offer a clear guide for dealers considering AI. First, the tools are already here. The challenge is not invention, but execution, which means using them better than your competitors. Picture an AI agent scanning your CRM each morning, flagging hot leads, and prompting tailored follow-ups. Dealers who act decisively will leave behind those waiting for the perfect solution.
Second, align with the right partners. Funding and adopting AI isn’t just about deep pockets; it’s about working with providers and advisors who understand the nuances of motor retail. The wrong technology partner will drain time and money. The right one will accelerate growth.
Third, invest in your people. Harpin is clear that coaching delivers the highest returns. Dealers must train staff to work confidently with AI. A service adviser who trusts an AI-driven scheduling tool, or a sales executive who knows how to respond to lead-scoring insights, is far more valuable than one who resists change.
AI can help keep customers loyal through predictive servicing reminders, renewal prompts, and personalised offers, and all delivered at scale. According to Google, nearly two-thirds of executives say AI has already improved customer experience through faster responses and greater engagement. For dealers, that means more repeat business and longer customer lifecycles.
There’s no need to fear that AI will replace people. Instead, it frees staff from repetitive tasks, allowing them to focus on the human interactions that build trust. Culture will remain the heartbeat of the dealership; AI is simply a new tool to support it.
Finally, partnerships matter. Collaboration across manufacturers, dealer groups, finance houses, and tech providers will decide who pulls ahead. AI can already optimise stock ordering based on sales and inventory data. Extend that capability across networks, and overstocking and costly discounting could become problems of the past.
The numbers are striking. Four in ten businesses using AI report clear productivity gains. More than a third see ROI in customer service, and one in three in marketing. These are exactly the areas where dealers face pressure to do more with less.
But the warning is equally clear: early adopters are stealing a march. Those who have embraced AI agents are embedding them across operations and seeing consistent, measurable returns. Dealers who hesitate risk being left behind.
The message for motor retail is straightforward. AI is no longer optional, it is a strategic imperative. The road to profitability, however, lies not in blind adoption but in careful execution. Follow Harpin’s playbook: focus on the basics, choose the right partners, invest in people, and never lose sight of customer loyalty.
Dealers who take these lessons to heart won’t just protect margins; they’ll unlock growth. In a fiercely competitive market, AI could be the difference between merely surviving and thriving in the decade ahead.
Mike Allen is the managing director of Cambria Private Capital.
