AI-assisted complaints are reshaping disputes for motor retailers

Businesses at Automotive Management LIVE in Birmingham said customers are increasingly using AI tools to draft detailed complaints about vehicle returns, repairs and finance agreements. Sewell Law says the shift is adding investigation time and raising the risk of flawed legal claims that still have to be dealt with.

Why it matters: - AI tools are making it easier for customers to launch formal complaints against motor retailers, dealerships and lenders. - The trend is increasing the time businesses spend checking claims, gathering records and responding to disputes. - The shift can turn a problem that might once have been settled in one conversation into a wider commercial issue involving sales, aftersales, finance and compliance.

What happened: - Sewell Law discussed the rise of AI-assisted complaints with businesses at Automotive Management LIVE at the NEC Birmingham on 11 November. - The East Yorkshire commercial solicitors said visitors raised concerns about consumer disputes, regulatory matters and other commercial issues. - Motor retailers, dealerships and lenders described receiving more detailed complaint letters from customers using AI to research rights and draft correspondence.

The details: - Retailers reported letters that cite legislation, propose a remedy and set deadlines for a response. - The format can help customers who would otherwise struggle to put a complaint in writing. - The same format can also raise customer expectations before the transaction has been fully reviewed. - A vehicle rejection complaint can require investigation by a dealership, a workshop, a lender and a warranty provider. - A dispute over a sale can depend on an archived advert, a handover document or messages between the customer and sales team. - Where finance is involved, the lender may hold information the retailer needs to understand the complaint. - Some complaints bundle several issues together, including vehicle faults, advertising claims, warranty coverage and what the customer was told after a repair. - Each issue can require different records and different decision-makers. - Jennifer Sewell, director and solicitor at Sewell Law, said AI can help dealer groups and retailers streamline systems, but it can also allow a customer to draft a formal complaint or claim in minutes. - Jennifer Sewell said the firm has seen dealership letters running to more than 20 pages and relying on legal authorities that do not exist or are incorrect. - Jennifer Sewell said the errors can come from a bad prompt or from AI tools using American references. - Jennifer Sewell said these complaints still need to be properly dealt with and are costing dealerships significant management time. - Sewell Law advises independent dealerships, dealer groups and franchise groups, lenders, manufacturers and specialist vehicle suppliers. - The firm’s motor retail work includes vehicle rejection, consumer disputes, motor finance complaints, regulatory compliance, advertising and pricing challenges, Trading Standards matters and workshop and forecourt safety investigations. - Sewell Law said the event also drew interest in its wider commercial practice, including commercial and property disputes, regulatory support, mediation and business protection. - The firm also works in manufacturing, agriculture, marine and construction. - Jennifer Sewell has worked across the motor industry for two decades. - Visitors also asked about disputes outside automotive, including decisions tied to cash flow and supplier relationships.

Between the lines: - AI is not just speeding up customer complaints; it is also raising the standard of what some customers believe they can demand. - Businesses now have to treat some AI-generated letters as serious formal claims even when the underlying legal arguments are wrong. - That creates a higher workload for legal, compliance and customer-service teams before a dispute has even reached a formal escalation stage.

What's next: - Motor retailers and lenders are likely to keep seeing more AI-assisted correspondence as consumers adopt the tools more widely. - Businesses will need faster internal processes to verify claims, pull records and respond before complaints spread across multiple departments. - Sewell Law is likely to continue advising on consumer disputes, finance issues and wider commercial problems as the pressure from complaint volume grows.

The bottom line: - AI is helping customers complain more effectively, but it is also making complaints more complex, more detailed and more expensive for businesses to handle.