Artificial Intelligence (AI) is the latest new tool for auto workshops of all sizes and has the potential to perform so well that it will most likely transform the way aftermarket workshops operate in the future.

Once you understand what AI means, its value in vehicle diagnostics becomes obvious. AI simply refers to high-capacity computer systems capable of analysing huge volumes of data, learning from existing diagnostic and repair patterns, and making decisions or recommendations on how to go about tricky repairs.

AI's role in a workshop will range from predictive maintenance and advanced diagnostics to streamlined office operations and is rapidly becoming an essential component of the modern aftermarket workshop.

To help you get your head around it all, this article contains an overview of how AI is being used, its current availability in Australia and New Zealand, the benefits it delivers and practical advice for workshop owners who are considering adoption.

How AI can be applied in the workshop

• Predictive maintenance: Analysing real-time and historical vehicle data to forecast when components are likely to fail, allowing for proactive servicing.

• Diagnostic assistance: Interpreting fault codes, symptoms and sensor data to guide technicians in making accurate and efficient repairs.

• General workshop and office assistance: Automating routine tasks such as scheduling, inventory management, customer communication and invoicing.

Current availability and adoption

AI-powered solutions such as advanced scanning tools, cloud-based diagnostic platforms, fleet management systems and integrated workshop management software are now available.

For example, on the TaT website, members are already using two levels of AI for diagnostic assistance. There is a big difference between efficient AI and the hoards of generic AI models on the internet. Efficient AI is rigorously trained so that it can focus on specific tasks. An old axiom from the early days of computers can now be applied to AI – rubbish in, rubbish out. Well trained AI is always going to be more effective than just chatting with a generic web model.

In Australia and New Zealand, AI adoption is most advanced among larger workshops, dealerships and fleet service providers. Independent workshops are beginning to explore these technologies, with uptake expected to grow as solutions become more accessible and cost-effective.

The benefits of AI

• Reduced downtime and improved reliability: Predictive maintenance enables early detection of faults, allowing repairs to be scheduled before breakdowns occur.

• Enhanced diagnostic accuracy: AI-driven diagnostic tools can analyse complex data sets, identify patterns and suggest likely causes and repair procedures, reducing guesswork and comebacks.

• Optimised inventory management: AI predicts trends in parts usage, helping workshops maintain optimal stock levels and reduce inventory costs.

• Increased efficiency: Automation of scheduling, invoicing and customer communication frees up staff for technical work and improves workflow.

• Improved customer service: Proactive maintenance, faster diagnostics and streamlined communication increases customer satisfaction and trust.

• Data-driven decision making: AI provides actionable insights from workshop and vehicle data, supporting better business decisions.

How AI works with internal combustion engine (ICE), hybrid and electric vehicles

• ICE and hybrid vehicles: AI analyses data from engine, transmission and emissions systems to predict failures in components such as injectors, sensors and batteries. Integration with telematics is becoming a reality.

• Electric vehicles: AI is critical for monitoring battery health, electric drive systems and software updates. Predictive analytics help manage battery degradation and optimise charging cycles, areas where traditional maintenance schedules are less effective. Some aftermarket scan tool manufacturers now offer high-voltage battery state of health testing abilities. Results gathered from the vehicle are compared to millions of other results captured from other users in cloud data and analysed by AI to give a more accurate and detailed battery report.

AI for general workshop and office operations

Beyond technical diagnostics, AI is increasingly used to streamline workshop administration:

• Appointment scheduling: AI systems optimise booking schedules and send automated reminders.

• Customer communication: AI chatbots and virtual assistants handle routine enquiries and follow-ups.

• Invoicing and administration: AI automates invoice generation, payment reminders and basic bookkeeping.

• Data security: AI assists in monitoring and maintaining compliance with data protection regulations.

Advice for workshop owners considering AI adoption

• Assess your needs: Identify which areas – diagnostics, maintenance, scheduling, inventory, or customer service – that would benefit most from AI.

• Start with integrated solutions: Choose platforms that will work with your existing workshop management and diagnostic systems.

• Invest in staff training: Ensure technicians and office staff are trained to use AI tools effectively.

• Monitor industry developments: Stay informed about new AI technologies and best practices through industry groups and training.

• Prioritise data security: Ensure all customer and business data is handled securely and in compliance with regulations.

AI is set to play a major role in the future of the automotive aftermarket, offering significant benefits in efficiency, accuracy and customer service. While adoption in Australia and New Zealand is still developing, the technology is advancing rapidly. Workshop owners who evaluate their needs, invest in appropriate AI solutions and train their staff will be well positioned to remain competitive and deliver superior service as the industry evolves.