Q&A: “Video is no longer a luxury” – how AI content is driving the future of car retail

From TikTok to YouTube, car buyers now expect fast, high-quality video content at every stage of their journey. In this Q&A, Mattias Kellquist, the CEO of Phyron, explains why video is reshaping automotive retail, the prospects for generating a ROI for dealers from AI, and what’s next for the technology.

Founded in 2019, Phyron has been active as a tech partner generating AI-powered video in the automotive retail space. Under the leadership of co-founder and outgoing CEO Johan Sundstrand, the company developed a fully automated video platform currently used by over 4,000 dealerships across 35 countries. The company produces over 700,000 videos each month and has generated more than 500 million views since 2021.

With Sundstrand stepping down after six years, fellow co-founder Mattias Kellquist is stepping into the CEO role. Having helped build Phyron from the ground up, Kellquist brings product expertise and here shares his vision for the company’s next phase.

Alejandro Gonzalez (AG): You’ve recently taken the helm at Phyron — what excites you most about this next chapter in automotive retail?

Mattias Kellquist (MK): I’ve been part of Phyron since day one, so stepping into the CEO role feels natural. What excites me most now is scaling what we’ve built. That includes evolving Phyron into a true platform company. We’re already generating more than 700,000 high-quality, AI-driven videos every month for over 4,000 dealer customers in 35 countries. As a platform, we want to go further; embedding Phyron into the whole car-buying journey, delivering even greater value to more dealers and partners.

AG: Video has become a huge part of the car-buying journey — how have you seen consumer expectations shift, and what role do you think video will play in the next 2–3 years?

MK: Car buyers now expect the same quality of experience they get from e-commerce platforms. That means clear, visual, trustworthy content that loads fast and works on every device. Video helps dealerships meet those expectations. What used to be a luxury is now standard.

At the same time, the buying journey has become more fragmented. Consumers are hitting hundreds of digital touchpoints before making a decision: across websites, marketplaces, and video-first platforms like TikTok, YouTube and Instagram. Dealers need to show up in all those places with the right content.

Video is the format that works everywhere and will play an even bigger role across the entire customer journey - from first discovery to post-sale engagement - especially as AI makes it faster and cheaper to create high-quality, always-on video content at scale.

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AG: Dealerships have embraced digital tools, but many still struggle to see a clear return on investment. Why do you think this is, and what needs to change?

MK: A lot of digital tools have been bolted on without solving the real problems. Dealers often end up managing too many systems, spending more time and money without seeing better results. That’s especially true with content creation, where video and digital ads can be time-consuming and expensive to produce. AI changes that by doing the work automatically. You get the output you need - like car videos or ads - quickly, with less effort and lower cost.

Many dealers are still running two sales processes at once - one in the showroom, one online - and that adds complexity. AI should help remove some of that, not add to it. Video is what customers want, but it’s not practical to create it manually for every car. Phyron takes care of that without needing extra staff or spend. Some dealers are now cutting back on digital costs and asking tougher questions about what works. AI has a role in answering that, if it’s focused on results (and not hype).

AG: Artificial intelligence is a hot topic, but also a vague one — what are some realistic, practical ways you see AI being used in motor retail or finance today?

MK: AI is already delivering real, practical results. At Phyron, we use automation to transform vehicle data and images into AI-generated videos; no editing, no scriptwriting, no manual work required. From there, ad platforms run their own AI-powered campaigns, continuously refining targeting and delivery to reach the right audience and drive more conversions.

Others are using AI to generate listings, suggest pricing, or support customer service. The key is to focus on use cases where AI saves time, improves quality, or removes friction. It’s not about replacing people. It’s about giving them better tools.

A good example is Motorpoint. Before using Phyron, their design team needed two days to produce a video ad for a single car. With Phyron’s AI and automation, their videos are created automatically, in minutes. Without any human intervention, they can create tailored, make-and-model-specific video ads for every vehicle in stock, and use them across platforms like Meta, YouTube and TikTok.

It’s not just faster, it’s more effective too. Motorpoint has seen lead volumes rise by up to 80%, with a 30% drop in CPM, and a clear improvement in lead quality. That’s AI making a real impact on everyday retail operations.

AG: Looking further ahead, what kind of role do you think AI agents could play in automotive retail — and what needs to happen before they’re truly viable?

MK: We’re already starting to see early versions of AI agents. They’re not fully autonomous yet, but that’s coming.

In the short term, for car buyers, agents could support by comparing offers and financing. As the tech matures, they’ll handle more of the process - from search and negotiation through to post-sale support. Buying a car can be stressful. AI agents have the potential to reduce that stress and give customers a more personalised, guided experience.

For dealers, AI agents could streamline repetitive tasks, free up sales teams to focus on high-value interactions, and ensure that buyers stay engaged throughout the buying process. They could also help qualify leads faster, maintain consistent follow-up, and provide valuable insights into customer preferences.

But to get to this stage for both customers and dealers alike, we need accurate data, tighter integration across systems and better ways to manage trust, risk and compliance.

AG: Finally, what’s the core problem Phyron is solving today, and how do you see that evolving as the industry continues to digitise?

MK: Most retailers don’t have the resources to create consistent, professional content for every vehicle. That means lost visibility and lost sales. Phyron solves that by automating video and visual content at scale. Since 2021, our customers’ videos have generated over 500 million views.

Now we’re focused on becoming a true platform company, i.e. making it easier for others to plug into our tech, whether they’re digital agencies, marketplaces, OEMs, or DMS and CRM providers. We’re expanding our integrations and API capabilities to bring video automation into the tools our customers already use. That’s how we stay relevant as the industry continues to digitise - by being embedded, useful, and easy to scale.

"Q&A: “Video is no longer a luxury” – how AI content is driving the future of car retail" was originally created and published by Motor Finance Online, a GlobalData owned brand.

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