A balanced approach to understanding and using AI will serve auto dealers well
Every time we step into a newer model vehicle, artificial intelligence makes its presence known, helping us make decisions and drive more safely, through features like emergency breaking and lane-keeping.
AI assistance also contributes to some basic comforts such as adjusting the temperature, playing music, or getting directions just by talking.
Consumers may not recognize AI’s significance at the dealership level, in BC and across Canada, but its impact is also significant.
For years, dealerships largely remained a bastion of tradition, but that changed when the pandemic hit — fast-tracking the emergence of online digital retail and the integration of AI into many aspects of a dealership’s operations.
From streamlined operations to optimized inventory management, AI is reshaping how dealerships enhance customer experiences and boost sales by targeting qualified lead opportunities and delivering important information about what customers want, what actions they’re ready to take, and how much they may want to spend.
It’s about providing the best service and experience possible to foster customer retention and loyalty to your dealership. The technology can also assist staff with identifying predictive maintenance before issues occur, creating easy and convenient customer experiences while strengthening trust.
Still, there are companies that have DMS software with AI included but aren’t using it to its full capability.
While this form of technology can process and analyze data with remarkable speed and accuracy, decision-making, relationship management, and ethics need to be guided by the human element.
For some, there remains a hesitation because of the perceived loss of personal touch, human connection and the possibility of not receiving a solid return on their investment.
For others, the concerns include potential difficulties in setup and training, and employee resistance to change. And of course, there is the vigilance that is required.
With innovation comes the added responsibility of ensuring data security protocols, at a point in time when data breaches are unfortunately, not uncommon.
Issues aside, AI-driven platforms can offer solutions for every customer-facing dealer department, including service-to-sales, data mining, and marketing.
Adoption of AI in the finance and insurance process can also mean reducing fraudulent transactions, a better overall customer experience and a streamlined way to ensure regulatory compliance.
To be clear, this isn’t about using AI or staff. It’s about combining the strengths of both, allowing technology to help manage data-driven, repetitive tasks while staff do what they do best. Using sales as one example, this means building relationships and closing deals.
An AI system is only as good as the people training them and how many years of experience that AI system has been in existence. While this form of technology can process and analyze data with remarkable speed and accuracy, decision-making, relationship management, and ethics need to be guided by the human element.
How quickly the integration becomes mainstream is anyone’s guess, but most experts suggest it would be a gradual process. But as we have proven time and time again, our sector is one driven by the reliance to communicate and engage with a human being, and regardless of technological change, that is one aspect of our sector that will never change.
