This past week has felt like a microcosm of where automotive retail truly stands in 2025 — a sector brimming with potential but grappling with the very real challenge of integrating new technologies into legacy systems, people, and processes.

The McKinsey research quoted in the recent AM-Online piece on Agentic AI — predicting rapid change across retail industries — is a timely reminder of both the opportunity and the complexity of what lies ahead. “Agentic” in this context isn’t just another AI buzzword; it represents systems that don’t merely assist humans but act with purpose, learning and adapting autonomously. Translating that into the structured, compliance-driven world of automotive retail is no small task.

The article’s key message — that this next wave of AI could reinvent customer interaction, pricing, and supply chains — is exciting. But the reality, as anyone running a dealership group or OEM-linked network knows, is that achieving this takes more than installing clever software. It requires a fundamental rethink of how people, processes, and data interact. The technology is no longer the bottleneck; integration and behavioural change are.

ICDP: Grounding the Theory in Customer Reality

I had the privilege of contributing to this year’s ICDP Autumn Meeting in Frankfurt — an event that continues to set the benchmark for evidence-based insight in our industry. ICDP’s latest research reinforced that the customer journey is evolving, but not as radically as some narratives suggest.

Yes, buyers are doing more research online and making decisions earlier, but physical dealer visits remain central to building trust and validating a brand. ICDP’s consumer survey of over 1,700 respondents across the UK and Germany showed that 80% of buyers make a “final” brand decision before visiting a dealership. Yet, people still want human reassurance at the point of purchase. As one participant put it, “No matter how digital they want to make this process, there’s got to be an in-person test drive.”

That tension — between digital efficiency and human connection — sits at the heart of every strategic debate in automotive retail right now. Whether it’s electrification, finance regulation, or AI adoption, the winners will be those who strike that balance effectively.

The day-one ICDP sessions on the used BEV market captured this perfectly. Dealers are still battling misaligned residual values, sometimes over-optimistic pricing, and customer scepticism around battery health. Progress is being made, but the transition from early adopters to mass market remains slow. It’s a reminder that technology alone doesn’t change behaviour; trust does.

Unfortunately, I missed the second day’s deeper dive into evolving customer expectations and dealer network optimisation — I had to travel to Luxembourg for the Fleet Europe Summit. From what I’ve seen and heard, it was another standout session exploring omnichannel models, the role of AI in journey mapping, and how dealers can remain relevant as brand gatekeepers rather than just transaction processors.

Fleet Europe: Technology in Action, But Integration Takes Time

Luxembourg was a different kind of experience — less theoretical, more execution-focused. The Fleet Europe event showcased an impressive range of connected mobility, EV infrastructure, and AI-driven fleet optimisation tools. The innovation pipeline is genuinely strong: predictive maintenance platforms, vehicle-as-a-service ecosystems, and real-time asset management models are all converging.

But the big takeaway was how integration fatigue is setting in. Technology suppliers have never been more advanced, yet fleets and OEM partners are realising that bringing multiple systems together — CRM, inspection, telematics, finance — requires significant process redesign and cultural change.

That’s why real-world case studies like ScaleVoice and AURES Holdings are so powerful. In AURES’ case, adopting AI agents through ScaleVoice has transformed lead handling and customer acquisition without increasing marketing spend. The AI now handles over 10% of all car purchases across its European operations, managing transactions worth around €130 million annually.

It’s a reminder that when applied correctly, AI doesn’t just automate — it amplifies human capability. It fills the gaps left by manual response times or resource constraints that previously limited growth. But even this success was only possible because AURES combined automation with process discipline and cultural alignment — ensuring that AI worked alongside their people, not in isolation.

Where AI and Automotive Retail Converge Next

So, suppose we connect the dots between McKinsey’s predictions, ICDP’s consumer data, and what I saw at Fleet Europe. In that case, one theme stands out: sustainable transformation happens at the intersection of intelligence and implementation.

Agentic AI, or whatever the next iteration of autonomous systems becomes, won’t fully replace retail professionals — but it will redefine their focus. The salesperson of the future will be less about persuasion and more about validation. Their value will lie in empathy, education, and trust — precisely the human attributes that reinforce customer loyalty in a world of algorithmic efficiency.

As we head toward 2026, my main reflection from this week is simple: innovation without integration achieves nothing. The technology curve is exponential; human adoption is not. To bridge that gap, we need leadership that combines strategic vision with operational patience — people willing to embrace AI not as a shiny tool, but as a disciplined business partner.

That’s where the fundamental transformation lies — not in the hype, but in the hard work.

Have a great week!