Read the headlines and artificial intelligence (AI) is going to change the way we do nearly everything. That includes the way Australians shop for cars, adding another dimension to visiting dealerships or reading Wheels reviews – but there are some significant risks to the AI method.

Rather than simply searching Google for a Ford Ranger review, buyers can now ask an AI chatbot like ChatGPT questions like “Is a Ford Ranger a good car to buy?” and “How does the Ford Ranger compare to the BYD Shark 6 for value?” Within seconds, it can provide an answer based on information from a huge range of sources and from there, buyers can ask more specific questions, like: “Is a Ranger suitable for a family?” “Which engine is best?” “Are there any common problems?” and “How does it compare with the Toyota HiLux?”

It’s a big change from traditional internet searches, where buyers generally need to gather information from several different sources, including manufacturer pages, reviews, forums and classifieds, then evaluate what they’ve found.

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According to Mycar Chief Customer Officer Adele Coswello, more Australians are now using AI as an important part of researching their next car.

“We’re seeing more Australians use AI as an early-stage research tool before making decisions about vehicle ownership, whether that’s buying a new car, purchasing a used vehicle, or understanding the long-term costs of running a particular model,” Coswello told WhichCar by Wheels.

“AI is helping consumers compare options, decode technical specifications, and build confidence before they engage with dealers, mechanics or automotive service providers. The appeal is that people can get answers quickly and in plain language, which helps simplify what can often feel like a complex and information-heavy process.”

AI is especially helpful for people who aren’t sure which car they want. For example, someone looking for an SUV – as 66.7 per cent of Australian new car buyers currently are – could tell a chatbot they have a $50,000 budget, need seven seats and would prefer a hybrid. Rather than searching through dozens of models themselves, AI can suggest a shortlist of vehicles that might suit their needs.

The change is also starting to affect car manufacturers. According to US automotive publication Automotive State of the Union (ASOTU), Toyota is switching up the way it markets its vehicles in the United States as more buyers turn to AI instead of traditional search methods.

Toyota’s US marketing chief, Mike Tripp, said traffic to the company’s website and other websites used for early car research had fallen by around 20 per cent. He believes the same trend is happening across the wider automotive industry, suggesting that AI is already helping people decide which cars to consider before they even visit a manufacturer’s website or dealership.

Toyota says people who do visit its website are now more likely to buy a car, which suggests AI could be helping shoppers narrow down their options earlier.

AI isn’t just being used to help people buy cars. Research from Mycar found that almost half of Australian vehicle owners surveyed (47 per cent) are already using AI tools to help make decisions about servicing and maintenance as well.

“We’re increasingly seeing customers arrive at service centres having already researched issues, asked AI about potential causes, or sought guidance on what questions to ask,” said Coswello. “The positive is that consumers are becoming more informed and engaged. Better-informed customers are often more confident asking questions and understanding recommendations.”

Dealership
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There is, however, a major downside: at this stage of its evolution, AI is notorious for mistakes. That’s particularly important when buying a used car, as the condition and service history of an individual vehicle can be more important than the model’s overall reputation.

An AI assistant might be able to explain common problems with a particular car and what to look for, but it can’t tell you how well a specific vehicle has been looked after. Buyers still need to check its service and accident history, have its mechanical condition inspected and conduct a PPSR search to check for outstanding finance or records of it being stolen or written off.

Additionally, chatbots are known for passing on “hallucinations” – false or fabricated information that is presented to the user as verified facts. According to computing giant IBM, these errors – which can include the AI completely inventing studies and research – occur because the technology doesn’t really “know” facts, but rather calculate statistical likelihoods when responses are formulated.

“AI shouldn’t be treated as a substitute for expert advice,” Coswello said. “While it can be useful for gathering information and understanding different options, it doesn’t have the ability to physically inspect a vehicle, verify its condition, or assess the full context behind a mechanical issue.”

Ultimately, AI is best seen as another useful tool when buying a car, rather than something to rely on completely. It can be particularly helpful for people who don’t know much about cars, turning a simple question like “What car should I buy?” into useful starting points about different models, features and running costs.

It can also help buyers understand unfamiliar terms and work out which questions to ask before making a purchase. However, AI-generated information still needs to be checked, particularly when it comes to Australian specifications, prices and reliability – and especially when it’s being relied upon to decide one of the biggest purchases you can make. 

When you’re spending thousands of dollars on a vehicle, independent reviews, test drives, inspections and professional mechanical advice are still extremely important. As Coswello puts it: “The most effective approach is to use it as a starting point for research rather than a final authority.”