The next time someone buys or sells a used car through Cars24, there is a good chance artificial intelligence—not a human—will handle much of the journey. From inspecting vehicles and verifying documents to answering customer queries and helping engineers write software, AI is steadily taking over tasks across the company, marking one of the most aggressive AI transformations underway in India’s consumer internet sector.
Cars24 recently announced significant progress in its transformation into a consumer AI company, processing over 1.1 trillion AI tokens during the April-June 2026 (Q1 FY27) quarter and nearly tripling AI consumption over the past two quarters.
AI tokens are a standard measure of how much work AI models perform while processing user queries and generating responses.
AI token spend now accounts for 8.88% of the company’s annual corporate employee salary bill, up from 2.17% two quarters earlier, as Cars24 continues to replace manual workflows with AI-led systems across customer engagement, operations and engineering.
Cars24’s AI push comes alongside a broader organisational overhaul. In a statement on July 3, the company said it had eliminated traditional levels, grades and job titles across the organisation, replacing them with a new operating philosophy called Flatland. With the move, Cars24 said it had become one of the few technology companies globally to dismantle conventional corporate hierarchy at scale.
Flatland goes far beyond removing titles. Under Flatland, employees are no longer defined by organisational rank but by the problems they own and the outcomes they deliver. Every employee now shares a single identity: “Builder”, reflecting the company’s shift towards flatter teams and AI-enabled ways of working.
AI adoption has become nearly universal across the organisation, with 95% of employees using AI every week and 85% using it daily, including non-technical teams. “Within engineering, 89% of production code is now AI-assisted, 99.4% of code reviews are AI-enabled, and average engineer productivity has increased to 3x, enabling faster product development and deployment across the organization,” the used car platform said.
Across customer-facing operations, Cars24’s AI platforms analysed 9.81 million customer conversations during the quarter, while AI voicebots handled 2.58 million connected conversation minutes, up 30.3% quarter-on-quarter. AI chatbots processed more than 550,000 customer requests, representing 128% quarter-on-quarter growth, as conversational AI continued to expand across buying, selling, and financing journeys, the company said.
AI has also become central to Cars24’s core automotive workflows. During the quarter, 80% of all vehicle inspections, or 2.88 lakh inspections, were conducted through AI-led systems, compared with 25% in the previous quarter and 10% two quarters earlier.
Similarly, AI-led loan disbursals increased to 65%, or 4,158 disbursals, more than doubling from 30% in the previous quarter and demonstrating rapid adoption of AI across revenue-critical processes.
Operational automation also expanded significantly during the quarter. Cars24’s Document AI processed 8.5 lakh documents, a 143% increase over the previous quarter, while its Agentic AI platform executed 5.71 million automated workflows, representing 314% quarter-on-quarter growth.
Across its retail hub network, AI completed 4.23 lakh operational validations and eliminated nearly 10 hours of manual work every day by automating critical functions, including attendance verification, opening and closing checklists, and vehicle slot validation.
Cars24 said its proprietary AI infrastructure now consists of six in-house platforms supporting more than 25 production AI use cases across customer support, inspections, computer vision, lending, document intelligence, and workflow automation. During the quarter, the company’s Agentic AI platform supported 319 active workflows, while more than 45 AI agents operated across customer support, CRM, WhatsApp, and voice channels.
“Document AI processed an average of 2.83 lakh documents every month across 27 document types, while its in-house imaging platform standardised 50,000 vehicle images every month, delivering operational savings exceeding ₹1 crore,” the start-up said.
Cars24 said its AI-powered inspection platform continued to improve operational efficiency at scale. Built on more than 20 proprietary computer vision models trained on more than one million vehicle inspections, the system reduced average inspection time from 45 minutes to 26 minutes, enabling approximately 3.6 lakh AI-assisted inspections during the quarter and saving nearly 91,000 inspector-hours, the used car platform said.
Similarly, conversational AI has become a key driver of customer engagement. AI voice agents now deliver 95-105% of the conversion performance of human calling teams, while nearly 20% of all customer conversations across buying, selling and financing are handled by AI. Voice Conversation Intelligence also analysed 3.3 million audio minutes every month, generating actionable customer insights to improve service quality and sales effectiveness.
“AI is no longer improving isolated workflows; it is becoming the operating system of Cars24. Processing over one trillion AI tokens in a single quarter reflects the scale at which intelligence now powers every part of our business. From customer conversations and vehicle inspections to engineering and operations, we are building one AI that understands context, learns continuously, and simplifies every stage of vehicle ownership,” said Vikram Chopra, Founder & CEO, Cars24.
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