AI is (not) recommending your store – AI is already judging your dealership before customers arrive

In a recent digital marketing lecture at Georgian College, ChatGPT recommended that I wait for a car that didn’t exist instead of buying one 15 minutes away. The class and I had decided to shop for a used BMW 230i, harnessing the power of AI to find one in my area. What followed was eye-opening.

I want to find a used BMW 230i for under $50,000 in the Guelph, Ontario area.

The first revelation was that, unlike a conventional Google or third-party search, ChatGPT did not recommend the closest matching result. Even though there were two qualifying cars in Guelph, it ranked one in Mississauga higher because that car was at a BMW dealer.

It told us that, based on its research, used BMWs from BMW dealers are often a safer purchase because of higher standards for inspection and reconditioning. It also explained the benefits of Certified Pre-Owned programs.

What about the ones closer to me in Guelph?

The second revelation hit even harder. It recognized that those two cars, which were at a large-volume used car superstore, matched what I had asked for.

However, it recommended that I go to the BMW dealer in Kitchener first, even though it did not currently have any 230i models in stock. ChatGPT had decided, based on reviews, that I would have a better experience purchasing a used vehicle from that BMW dealer.

Does that BMW dealer get used 230i models in stock often?

The next response shocked the whole class. ChatGPT stated that, based on inventory turn, new-car inventory and volume, and previous history, it was likely the BMW dealer would get a high-quality 230i in stock relatively soon and that it would be worth waiting for.

At this point, we decided to fact-check ChatGPT’s claim that we would have a better experience. We found that the BMW dealer and used car superstore had the exact same Google review rating, so we pressed deeper:

Why do you recommend the BMW dealer over the cars that are already available?

ChatGPT mentioned that the used car superstore had a poor Yelp rating of 2.6 and several Reddit threads describing poor purchase experiences. It also produced a map showing both the BMW dealer and the used car superstore. When hovering over each, more information appeared, sourced from the dealership website, DealerRater.ca and other independent reviews.

After my exercise with the Georgian class, it became very clear to me that showing up in the larger AI ecosystem is vital.

It was clear that the BMW dealer’s website content helped influence the AI recommendation, as its summary was much more in-depth than the superstore’s. Also telling was this response from ChatGPT:

“Based on your background and what I know about you Bruce, you value a high-quality purchase and ownership experience. You would most likely appreciate a great presentation as well as the chance to build a relationship with who you are buying from.”

It was the first time I’d watched AI act like a trusted advisor instead of a search engine.

I’ve been researching AI and its applications in the automotive retail world for more than a year now, especially through my work on CADA’s AI Navigator newsletter. A consistent theme is that the quality of dealership data is a defining element of successful AI implementation.

Largely, dealers are thinking about AI in an outbound direction: “How can AI drive sales and fill my workshop?” Almost nobody is asking: “How does AI perceive my business and its value to customers?”

After my exercise with the Georgian class, it became very clear to me that showing up in the larger AI ecosystem is vital. When we began teaching SEO and website quality as digital marketing pillars, dealers came on board, wanting to show up higher on search results pages.

That is still important. However, dealers now need to think more broadly about all aspects of their digital presence, especially review and reputation management. Instead of consumers stumbling upon and reading your reviews themselves, AI has already done it for them and made its own interpretations at lightning speed.

Remember the old car business slang term “lot lawyer”? It referred to a customer’s friend who was brought along to help vet the dealership and the car during the sales process.

The lot lawyer used to sit in the passenger seat. Now it sits in every customer’s phone.

What will it think of your dealership?

About Bruce Duguay

Bruce Duguay is a professional business leader with two decades of experience in automotive retail, including more than a decade operating premium brand dealerships in Canada. You can contact him at duguaybruce@gmail.com or reach out via LinkedIn.

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