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We handle cases across the United States. Allen Stewart is licensed to practice law in Texas, California, New York, Pennsylvania, Missouri, North Carolina, Ohio and Arizona.

How AI Diagnostics in Cars Affect Lemon Law Claims: A 2025 Perspective

The left front view of the Kia K5 stopped in front of a green glass building.
Image Source: pexels

AI is embedded in so many products and services today, and it is increasingly found in automotive diagnostics. The increased computerization in the automotive sector allows for vehicles’ self-monitoring, and auto technicians’ use of digital tools to zero in on issues. Given the current state of technology, this seems relatively commonplace, but how can AI diagnostics be used specifically to support a client’s claim in a lemon law case?

With lemon law claims, evidence of a substantial defect is needed to prove it is severe enough for the manufacturer to provide a refund or replacement vehicle. AI diagnostic reports are one type of evidence a lemon law attorney can use to structure a solid claim. We’ll review how they work and where they can be of most assistance when pursuing a lemon law case.

The Lemon Law Process

Before we dig into how AI is helping with the lemon law process, we’ll take a brief overview of the process, so you can see how AI could fit in and help with evidence to prove the claim. The vehicle owner usually goes through these steps with the attorney to pursue their claim:

  • The client meets with the lawyer for a free consultation. This is a good first step, so the client can explain the claim, and learn how the lawyer will approach the defense.
  • The lawyer determines if the claim would be allowed according to state lemon law. If it is valid, then the lawyer will lay out how they would work to gain the client just compensation.
  • Once the client officially signs on and has hired the attorney, evidence gathering and organization is key to the success of the claim.
  • The attorney will examine all the evidence and determine where there are potential gaps or areas where the case, while valid, could benefit from reinforcement. It is here where AI diagnostics could be of assistance, in addition to expert auto technician testimony.

Key takeaway: the attorney must prove that the vehicle’s issue substantially impacts its use, value or safety. Many types of evidence are used to help provide this proof, such as client and dealer/manufacturer correspondence and documentation of repair attempts.

Ways that AI-Powered Diagnostics Contribute to and Document Repair Attempts

In 2025, AI technology plays a big role in helping to discover and present lemon law case evidence. Here’s how it works:

What occurs with today’s cars is that their sophisticated technology, On-Board Diagnostics (OBD), tracks problems, and creates error codes that can help auto technicians locate the trouble. The auto tech then uses diagnostic tools (increasingly equipped with AI) to read the codes the car has created. AI sifts through reams of data very quickly, comparing it to learned baselines, and analyzes and interprets these codes, and can recommend repairs. AI is also helpful with making predictions based on code analysis.

For more information on arbitration and other frequently asked lemon law questions, click here.

According to the Fullpath 2025 State of AI Adoption in Car Dealerships report: “80% [of 200 car dealerships and franchise dealerships senior decision makers surveyed by independent global research firm Global Surveyz Research] are either already using AI, currently deploying AI, or planning to deploy AI in 2025 across their operations.” Much of this adoption is in the customer service segment. 26% of the survey respondents said they are using AI predictive maintenance, and another 34% are rolling it out (in deployment).

The growth of AI diagnostics offers a new and compelling resource that attorneys can use as part of their suite of evidence to prove defects in lemon law cases.

Examples of How AI Diagnostics Works

AI can improve auto diagnostics in multiple ways. One is to identify serious, yet intermittent problems that might be hard for humans to pinpoint and track. These can be challenging lemon law cases to prove, and AI can get to the heart of these matters, interpreting the trouble codes cars produce whenever the intermittent issue occurs.

Sounds and vibrations can be tricky; it can be hard to discern what they mean and if they’re serious. AI can analyze these to check for patterns that could lead to the discovery of worn out or malfunctioning parts.

Why it matters: AI’s ability to analyze complex data to find and predict vehicle problems, and recommend fixes, make it increasingly a vital automotive repair technology.

How Are AI-Diagnostic Reports Used in Lemon Law Cases?

What AI excels at–because that is how it is trained–is looking for patterns in reams of data. It is good at data analysis. Since vehicle computer systems create data relating to their operation, there is a need to analyze this data to find exact points where component issues or failures are occurring. The tools auto technicians use can generate reports that disseminate what the car’s systems have recorded. Then the AI is able to report on dates, times, and incidents that the car has logged, providing precise information on what has occurred.

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How The AI Diagnostic Process Can Reinforce the Client’s Claim?

The analyses the diagnostic tools provide are created during repair visits to the auto shop. Since the manufacturer is allowed multiple repair attempts under a state’s lemon law (number varies by state), the attorney can use the diagnostic reports to prove the repairs were first analyzed, then attempted. Then, if the repairs are unsuccessful, and a lemon law claim is pursued, the AI reports are a defining element, proving that the auto technicians did get the opportunity to fix the problem. Also, the AI tool will report a problem or problem category. So, the dealer or manufacturer cannot argue that they didn’t know about the problem; it will be documented.

What Your Lemon Law Attorney Can Achieve with AI-Diagnostics Reports

First, the question of how admissible AI-generated evidence is in court needs to be addressed. The National Center for State Courts summarizes the definition well: “Yes, if it’s authentic, relevant, reliable, and not unduly prejudicial. Judges must assess how the evidence was created, whether it can be verified, and if it contributes to fairness before ruling on its admissibility.”

It can be proven that AI-powered diagnostic tools produce relevant, reliable, and not unduly prejudicial data. Cross-checks to prove this come from the vehicle’s OBD. They are also backed up by repair records from the auto repair shop, and testimony from the technicians.

Mechanic using laptop

Image Source: Freepik

How does AI diagnostic tool evidence align with state lemon laws?

The AI-diagnostics are verification tools that literally identify the problems, recommend solutions, and track repair attempts (all state lemon laws require repair attempts). Failed repair attempts can then be noted by the attorney, proving that the client’s vehicle is unable to be fixed (as the client likely has stated to the attorney in their claim).

Lemon laws are confusing. Read our guide to the lemon law complaint process.

Why You Need a Lemon Law Attorney

As you can see, AI diagnostics introduce a new layer of evidence that lemon law attorneys can use to pursue claims. This shouldn’t surprise us, really, as AI is becoming embedded into so many areas of our lives. What matters in lemon law is providing evidence that proves that the vehicle defect is substantial, and that it severely impacts the vehicle’s use, value or safety. AI is used as a tracker, predictor, and diagnostic tool to corroborate the client’s claim, and even find additional evidence from the car’s DTC that humans might miss.

It’s important to work with a lemon law attorney because of the increasing electronic sophistication of automobiles. AI diagnostic tools will grow in usage by dealerships, and the documentation they provide will be used more commonly to help prove lemon law claims. You will greatly benefit from working with a lemon law lawyer who understands the importance of AI diagnostics and how they’re used to help you win your case.

Trust Allen Stewart, P.C. for Expert Lemon Law Representation

Allen Stewart, P.C. offers expert lemon law representation nationwide. Our attorneys excel in winning cases involving advanced vehicle technologies. Technology will continue to influence lemon law cases; and with the rise of AI diagnostics, we will leverage their reports to support claims. We know that AI diagnostics are only one part of the evidence to prove your claim. To strengthen your case, we use it in conjunction with other kinds of evidence.

Please be aware that manufacturers may try to evade, diminish, or dismiss your claim, but we will aggressively fight for your rights. You don’t have to stand alone against a manufacturer who is not motivated to provide you with compensation. Our track record of success winning lemon law cases in California, New York, Texas, and across the country is based on our skill, knowledge and determination to hold manufacturers accountable.

There’s no need to worry about affording a lawyer. Thanks to federal law, our clients pay nothing out of pocket, so call us now (866-440-2460) for a free consultation, or contact us online.

This information brought to you by Allen Stewart P.C.

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