From comparing SUVs and calculating EMIs to checking vehicle features and researching dealer prices, AI is becoming part of the car-buying journey. Recent research suggests that consumers are increasingly turning to conversational tools before visiting showrooms, changing how automotive brands reach potential customers. However, despite growing digital adoption, test drives, family opinions and dealership interactions continue to influence the final purchase.
A consumer planning to buy a new car has a budget of ₹20 lakh but cannot decide between a petrol SUV, a hybrid or an electric vehicle. There are questions about mileage, maintenance, safety ratings, financing and whether the vehicle will be comfortable for daily city driving.
Earlier, finding those answers meant moving between automotive websites, YouTube reviews, comparison platforms and dealership visits.
Now, the consumer can begin by asking an AI chatbot to compare the available options.
The question may be as specific as, “Which automatic SUV under ₹20 lakh is suitable for a family of five, offers good mileage and handles Bengaluru traffic comfortably?”
Within seconds, the chatbot can organise specifications, explain differences between powertrains and suggest factors the buyer should consider.
Artificial intelligence is increasingly becoming another source of information in the automotive purchase journey. Consumers are using tools such as ChatGPT and Gemini, alongside AI-enabled search and automotive platforms, to research vehicles, compare prices, understand financing and prepare questions for dealerships.
The development is particularly relevant for automotive marketers because AI can influence which brands consumers consider before reaching a manufacturer’s website or showroom.
A Google-commissioned Kantar study conducted in May 2026 among 1,022 recent car shoppers in India’s metro and Tier 1 cities found that 93% had used AI-powered experiences during vehicle research.
The study also found that AI users consulted an average of 7.8 information touchpoints, compared with 6.9 among buyers overall.
The findings suggest that AI is becoming part of a broader research process rather than replacing other sources of automotive information.
From Search Filters to Conversations: How AI Is Helping Buyers Shortlist Cars
Traditional automotive websites usually ask consumers to begin with specifications. Buyers select a price range, body type, fuel preference, transmission and manufacturer before viewing matching vehicles.
AI allows them to begin with their circumstances instead.
Someone buying their first car may ask which models have lower maintenance costs. A family might prioritise rear-seat comfort, safety features and luggage space. An electric vehicle buyer may want to understand charging requirements before comparing models.
These questions are not always easily addressed through conventional website filters.
Conversational AI can bring different considerations into one discussion, helping users refine their requirements before preparing a shortlist.
Cox Automotive’s AI in Auto Retail Tracker, which surveyed 1,502 US consumers planning to purchase a vehicle within 12 months during the second quarter of 2026, found that 63% definitely or probably expected to use AI during their next purchase.
Thirty-six per cent were already using AI tools as a vehicle research channel, close to the 38% using automotive-specific websites.
Another 24% said AI helped them feel better prepared for dealership interactions.
Lori Wittman, President of Retail Solutions at Cox Automotive, described the shift in consumer behaviour.
“AI is changing where car shopping starts, and it’s bringing dealers a more informed, more decisive buyer,” she said.
For dealerships, this could change the nature of their first interaction with a potential customer.
Instead of arriving to ask which vehicles are available, buyers may already have compared engine options, safety equipment, fuel efficiency and competing models.
However, AI recommendations are not necessarily accurate or complete.
Vehicle specifications differ across variants, model years and markets. A chatbot may also provide outdated prices or overlook local availability.
Consequently, the technology can help consumers organise their research, but the information still requires verification before a purchase.
AI Is Moving Beyond Car Comparisons to EMIs, Insurance and Ownership Costs
Choosing a vehicle is only one part of buying a car.
Consumers must also consider financing, insurance, registration, maintenance, fuel expenses and resale value.
AI is increasingly being used to examine these costs together.
For example, a buyer comparing a petrol SUV with an electric alternative could ask an AI assistant to estimate ownership expenses over five years, using assumptions about daily travel, electricity tariffs, fuel prices and maintenance.
Another consumer might compare different loan tenures to understand how monthly EMIs and total interest payments change.
Such calculations can provide a starting point, although actual financing costs depend on lender offers, credit eligibility and applicable charges.
Cars.com’s November 2025 survey of 936 in-market shoppers, recent car buyers and AI users found that 44% had used AI-powered car-shopping tools.
Among AI users, 73% said conversational search saved time during vehicle research.
Consumers used the technology to compare models, investigate vehicle reliability and understand pricing.
However, 59% considered AI a starting point for further research, while only 30% regarded its responses as sufficient for a final answer.
The findings suggest that buyers are using AI to narrow down choices while continuing to consult additional information.
Matt McDonald, Senior Director of Product Management at Cars.com, highlighted the importance of that process.
“A car purchase is still one of the most significant financial decisions consumers make,” he said.
The distinction matters because an AI-generated affordability estimate is not a financing approval.
A chatbot might calculate that a particular EMI appears manageable based on a household’s stated income, but it cannot establish the actual interest rate or loan conditions without reliable lender information.
Similarly, an AI comparison of on-road prices may not account for current dealership discounts, insurance packages or state-specific charges.
For used vehicles, buyers must also assess service history, accident records, mechanical condition and ownership documentation.
AI may help prepare questions or compare listings, but those checks still require reliable records and, often, physical inspection.
Why Indian Car Buyers Are Increasingly Turning to AI
India provides a significant example of how conversational AI is entering the automotive purchase journey.
Car buyers already rely on a combination of digital reviews, manufacturer websites, video content, family recommendations and dealership visits.
AI is becoming another part of that information network.
The 2026 Google-Kantar research found that 80% of buyers using AI chatbots also consulted Google Search or YouTube during active vehicle research.
Consumers used AI-powered experiences to explore options, compare specifications, prioritise requirements and understand financing considerations.
The study also reported a 20% year-on-year increase in car-related search queries, indicating more detailed digital research.
Siddharth Shekhar, Director at Google India, described the automotive purchase journey as “deliberate, non-linear, and deeply digital.”
This pattern is particularly relevant in a market where purchasing decisions often involve several family members.
A buyer may begin by researching an SUV’s engine and mileage, then consult reviews about rear-seat comfort before comparing finance options with family members.
AI can assist with these questions, but it does not remove the need for discussion or physical evaluation.
Consider a family choosing between two seven-seater vehicles.
A chatbot can compare their dimensions, safety features and advertised fuel efficiency. It can also prepare a checklist for the showroom.
However, the family may still need to assess whether the third row is comfortable, whether elderly passengers can enter easily and whether the driving position suits the buyer.
Grant Thornton Bharat’s 2026 Passenger Vehicle Pulse, which surveyed more than 1,300 Indian consumers and 500 dealers, found that digital media and content creators influenced 45% of respondents.
At the same time, 75% said they would not purchase a car without a physical test drive.
The findings illustrate how digital information and in-person experiences continue to operate alongside one another.
For automotive brands, this creates a more complicated customer journey.
A potential buyer may first discover a model through a creator’s video, compare it using AI, examine owner reviews and then visit a showroom.
The brand may influence different stages of that process without knowing precisely where the consumer’s preference was formed.
AI-generated recommendations introduce another consideration: automotive information must be accurate and available wherever consumers conduct their research.
The Showroom Is Staying, but the Buying Journey Is Changing
The increasing use of AI does not mean consumers are ready to complete every stage of a vehicle purchase through a chatbot.
Research suggests that buyers continue to distinguish between obtaining information digitally and making the final financial commitment.
CarGurus’ 2025 Consumer Insights Report, based on more than 3,000 recent US buyers and sellers, found that 80% were open to using AI during automotive shopping, while 26% had already done so.
However, 86% still wanted to see a vehicle in person before purchasing it.
Physical inspection, test drives and negotiations remained important parts of the process.
Alison Ciummei, Vice President of Product Marketing and Customer Insights at CarGurus, described consumers as “using digital tools to research more deeply” while continuing to prepare for dealership interactions.
The findings reflect a purchasing process in which AI may influence earlier decisions without replacing the salesperson.
For dealers, a more informed buyer can create both opportunities and challenges.
Customers may arrive with clearer requirements and more specific questions, potentially making some conversations more focused.
But they may also challenge advertised prices, question feature differences or arrive with incorrect information generated by AI.
Sales teams may therefore need to spend more time clarifying technical details, explaining actual ownership costs and addressing comparisons consumers have already encountered online.
The shift also matters for automotive advertising.
Traditionally, manufacturers and dealers have competed for visibility through search engines, automotive portals, social platforms and promotional campaigns.
Conversational AI introduces another way consumers can discover vehicles.
A shopper may ask which SUV offers the best balance of safety, mileage and maintenance costs rather than searching directly for a manufacturer’s name.
That interaction could influence the initial shortlist without the consumer visiting any brand website.
For marketers, this places greater importance on consistent vehicle specifications, accurate pricing information, reliable reviews and clear explanations of product features.
It also raises questions about how AI systems select and present recommendations.
Cars.com’s research found that 63% of respondents were concerned about bias in AI-generated vehicle recommendations.
Such concerns are relevant when consumers cannot easily distinguish between independent comparisons, incomplete information and commercially influenced results.
The financial significance of a car purchase makes these limitations difficult to ignore.
A model may appear suitable based on specifications but prove uncomfortable during a test drive. A financing option may look affordable until additional charges are included. An advertised vehicle may not be available at the nearest dealership.
These are areas where AI-generated advice needs to be checked against current information and real-world conditions.
The evidence from recent studies points towards a car-buying journey involving more digital assistance rather than a completely automated purchase.
Consumers are increasingly using AI to compare vehicles, understand unfamiliar technologies, estimate costs and prepare for negotiations.
At the same time, they continue to rely on reviews, family discussions, dealership representatives and physical test drives.
For automotive companies, the change is not simply about introducing AI chatbots into their own customer service operations.
It is also about understanding how potential customers are using independent AI tools before contacting a dealership.
AI is beginning to influence which cars consumers research, which models enter their shortlist and what questions they bring to the showroom. The final purchase still depends on factors that extend beyond a chatbot’s recommendation, but the decisions leading up to that moment are becoming increasingly AI-assisted.
Disclaimer: All data points and statistics are attributed to published research studies and verified market research. All quotes are either sourced directly or attributed to public statements.
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