AI tools in auto retail: quick gains, hidden risks

Martijn Versteegen, CEO & co-founder at IMAGIN.studio, on why alongside the benefits of AI there are risks that deserve closer attention.

Martijn Versteegen

June 23, 2025

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Many car dealers are already using artificial intelligence (AI) to speed up daily tasks.

Tools like chatbots, automated emails and fast image generation promise to make sales processes quicker and more efficient. But alongside the benefits, there are risks that deserve closer attention.

One major issue is intellectual property. AI models are trained on huge datasets, much of which includes copyrighted text and images. Several AI companies are now facing legal action.

The latest example is Getty Images taking Stability AI to the High Court in London, accusing it of scraping millions of copyrighted images without permission to train its image generator. In the U.S., the New York Times is suing OpenAI and Microsoft for similar reasons.

These cases raise serious questions for businesses using AI-generated content. Depending on the outcome, the Stability AI ruling could create legal precedent in the UK, with direct implications for dealers using AI tools.

Accuracy is another problem. AI models sometimes “hallucinate” –  they generate false or misleading information.

A recent example saw a Chicago Sun-Times journalist unknowingly include several made-up book titles in a summer reading list, all invented by AI. For auto retailers, similar errors could easily damage credibility.

Staff using AI-generated listings, images or customer data will still need to check outputs carefully. Without that, any short-term time savings risk being wiped out by the cost of corrections.

Bias is a further concern. Because AI learns from existing data, it can absorb and repeat built-in biases.

This can lead to content that unintentionally excludes or misrepresents certain groups, creating reputational or even legal problems for dealers who unwittingly use biased AI outputs.

For automotive retailers, adopting AI requires caution. It’s essential to verify outputs, question data sources, and know where generated content originates.

One way to reduce exposure is to work with specialist providers who deliver copyright-safe content, helping dealers stay clear of legal or reputational trouble.

AI offers useful efficiencies, but human oversight remains essential to avoid costly mistakes.

Martijn Versteegen is CEO & co-founder at IMAGIN.studio