Dealers using AI-powered chatbots saw a 43% month-on-month increase in customer conversations in January, with a conversion rate of 48%, according to new data.

AutoConverse's data, which is based on information from AI-chat bots used in UK dealerships, shows that having bots available can boost leads, particularly during out of hours.

On Christmas Day 2023 26% of people interacting with an AutoConverse bot became a potential customer. This conversion rate increased to 32.4% on Christmas day 2024.

Ross Olsen, co-founder of AutoConverse, said: “With AI supercharging the understanding and responsiveness of the chatbot they have become the next best thing to an expert human - and typically faster in answering even the most detailed questions while also being available instantly.

"The experience for the customer is smoother and more satisfying than searching for information that is often not easily available on a website.

"We can also see from the language patterns of customers that although they know they are talking to a bot, their appreciation and confidence is growing as we enhance the experience through analysis of countless interactions.

"That is why the conversion rate from chats to real leads has improved by almost 50% over the past year."

AI bots don't replace dealer staff

AutoConverse stresses that their bots do not replace dealer staff but make life easier in the dealership by introducing more carefully qualified customers or new potential opportunities who choose to interact with a dealership.

Olsen added: “There’s a significant difference between human-managed solutions, which rely on call centre chat handlers or internal staff, and an AI-driven system that functions as a true virtual sale, aftersales, or service assistant.

“AI chatbots trained specifically on automotive knowledge can provide instant, accurate and contextual responses, leading to real business impact for dealers."