By Eve 
The auto industry loves a miracle cure. Whenever sales slow, margins shrink, or buyers push back, executives and consultants rush out the next “solution” that’s supposed to fix everything. The problem is that most of these fixes don’t actually solve anything. They just delay accountability.
AI is the latest entry in a long list of industry saviors that promised transformation and delivered disappointment.
Dealers have seen this movie before.
Digital Retailing Was Supposed to Save Dealerships
A few years ago, digital retailing platforms were sold as the future of car buying. Customers would complete purchases online, friction would disappear, and dealerships would operate more efficiently than ever.
What actually happened was far less dramatic.
Buyers still wanted to test-drive vehicles. Deals still fell apart over financing, trade values, and last-minute surprises. Many digital tools ended up adding complexity instead of removing it. Dealers paid for software subscriptions, but real-world behavior barely changed.
Digital retail didn’t fail outright — it just never delivered the revolution it promised.
Subscription Models Collapsed Under Reality
Automakers pushed vehicle subscriptions as the end of ownership. Flat monthly fees. No long-term commitment. Total flexibility.
Customers didn’t bite.
Subscriptions turned out to be expensive, confusing, and restrictive. Most buyers realized they were paying more for less control. Automakers quietly backed away from the concept after burning through money and goodwill.
It wasn’t innovation. It was a misread of what consumers actually want.
EVs Were Marketed as “Inevitable”
Electric vehicles were sold as a one-way street. Gas was dead. Resistance was pointless. Regulators, automakers, and media all repeated the same message.
Then reality showed up.
High prices, charging anxiety, infrastructure gaps, insurance costs, and resale uncertainty slowed adoption. Automakers were forced to scale back production plans, delay launches, and walk back timelines they once treated as gospel.
EVs aren’t disappearing — but the idea that they would effortlessly replace everything else collapsed under real consumer behavior.
Autonomous Driving Overpromised and Underdelivered
Self-driving cars were supposed to be everywhere by now. Commutes would become passive. Traffic deaths would vanish.
Instead, autonomy stalled at driver-assist systems that still require constant human oversight. High-profile crashes and investigations exposed how far the technology still is from full autonomy.
What was marketed as imminent turned out to be decades away — if it arrives at all.
Direct Sales Didn’t Replace Dealers
Automakers flirted with cutting dealers out entirely. Direct-to-consumer sales were pitched as cleaner, cheaper, and more modern.
Most backed off.
Dealers still handle logistics, service, financing, trade-ins, and customer fallout. Automakers realized they weren’t prepared to absorb those responsibilities at scale. The franchise system survived because it still does the dirty work manufacturers don’t want.
Now It’s AI’s Turn
Which brings the industry back to where it is now.
Artificial intelligence is being sold as the next great fix. Smarter pricing. Better inventory management. Automated marketing. Faster deals. Higher margins.
But AI doesn’t fix affordability. It doesn’t restore trust. It doesn’t make buyers comfortable with inflated prices or confusing ownership costs. It optimizes around problems instead of solving them.
Dealers aren’t rejecting AI because they’re anti-technology. They’re skeptical because they’ve watched the industry hype solutions while ignoring root causes for years.
Every failed “fix” followed the same pattern:
- Oversell the tech
- Ignore consumer behavior
- Shift blame when results disappoint
- Move on to the next buzzword
AI may eventually prove useful. But pretending it’s the breakthrough that finally fixes the auto industry feels familiar — and not in a good way.
If history is any guide, the industry won’t be saved by another tool. It will be forced to change by buyers who stop accepting excuses.
And that’s the fix executives keep trying to avoid.
Elizabeth Puckett