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Savvy Gen Zers are utilizing AI agents like ChatGPT, Google Gemini and Bagoodex when shopping for new cars.
Photo description | Gen Z new car shoppers are utilizing AI as a tool to save money on a purchase by finding the right time to buy.
Credit | Photo Illustration by Newsweek
Three-quarters of Gen Z car shoppers are using artificial intelligence to find the best time to buy a new vehicle, a Salesforce research study published today found. Gen Z shoppers are also asking AI about the timing of their purchase based on price fluctuations, deals or incentives.
The generation, also known as Zoomers, encompasses those born between 1997 and 2012. They were the first generation of digital natives, those that grew up never knowing a time without a computer.
Millennials were born between 1981 and 1996. Baby boomers are now between 61 and 79 years old. Gen X is made up of those born between millennials and baby boomers.
"Gen Z now makes up a quarter of the global population, and they're spending more than any generation before them at the same age. But when it comes to cars, they're hitting the brakes—not because they don't want vehicles, but because they're budget-conscious, overwhelmed by choices and unsure about the best time to buy," Salesforce Senior Vice President and General Manager of Manufacturing, Automotive and Consumer Goods Achyut Jajoo told Newsweek.
Salesforce's study found that 79 percent of Gen Zers want AI agents to find and recommend the best car for their needs. Just 58 percent of baby boomers wanted the same.
Commonly used AI agents include ChatGPT, Google Gemini and Bagoodex.
Millennials and Gen Zers were statistically close to each other (71 and 68 percent, respectively) in wanting AI agents to suggest the best financing options for their vehicle purchase. Only 53 percent of baby boomers were interested in that.
On the whole, Gen Z is more open to using AI agents to perform tasks for them, such as scheduling vehicle service appointments, than baby boomers, 67 percent compared to 39 percent. Seventy-one percent of Gen Zers believe that AI makes car maintenance easier.
Not only is Gen Z using AI for research, they're also more familiar with the technology than older generations and how it and other high-tech innovations link to today's vehicles. Sixty-nine percent have heard of the term "connected car," 71 percent are familiar with the term "software-defined vehicles" and 72 percent have heard of "mobility" or "mobility as a service."
Automakers are working to leverage AI in their vehicles and take advantage of Gen Z attitudes toward subscription pricing and personalization. Forty percent of Gen Zers prefer subscription model pricing for comfort, convenience and safety features, the survey found.
"What's fascinating is that while they care about price and safety, nearly half of Gen Z considers tech connectivity a must-have. These digital natives aren't looking for their grandfather's car-buying experience. They want AI assistants to guide them through confusing terminology, suggest the right timing for purchases and help match them with vehicles that fit their unique needs," Jajoo said. "The automotive companies that can speak this language and simplify the journey will capture not just their immediate business, but their loyalty for years to come."
