This review paper explores the integration of Artificial Intelligence (AI) into dealership management software to enhance customer service and foster future innovations. The primary objective is to synthesize existing research and industry practices to understand how AI technologies can streamline operations, personalize customer interactions, and drive business growth within automotive dealerships. The paper reviews key AI applications, including AI-driven chatbots and virtual assistants that provide automated support, predictive analytics for customer behavior and sales forecasting, and personalized marketing strategies. The analysis reveals that AI significantly improves customer service efficiency by reducing response times and enhancing customer satisfaction. Predictive maintenance and inventory management powered by AI algorithms ensure optimal resource allocation, minimizing downtime and operational costs. Additionally, the paper identifies potential future innovations facilitated by AI advancements, such as augmented reality (AR) for virtual vehicle tours and blockchain for secure transaction management. These innovations promise to elevate the customer experience and streamline dealership processes, creating a competitive edge in the market. The integration of AI into dealership management software presents substantial benefits in improving customer service and operational efficiency. The paper emphasizes the need for continuous investment in AI technologies and employee training to fully harness these advantages. Future research should focus on exploring emerging AI applications and their long-term impact on the automotive industry, ensuring dealerships remain adaptable and competitive in a rapidly evolving technological landscape. Keywords: Artificial Intelligence, Dealership Management Software, Customer Service, Predictive Analytics, Augmented Reality, Blockchain, Automotive Industry.