Artificial Intelligence – How it Can Benefit Your Dealership

It seems like everywhere we look these days, the words Artificial Intelligence (AI) are front and center. Movies and TV shows like Finch, The 100, Westworld and even older movies like Star Wars revolve around robots or AI designed to help or rise against humans. We have Apple’s Siri, Amazon’s Alexa, and Google Assistant on our phones or home devices, all powered by AI. We even have smart home devices like NEST that learn about our heating and cooling preferences and daily habits so it can adjust the temperature to our liking.  

You may be wondering how you, as a Dealer, can use AI to streamline, enhance or save time in your business. A few weeks ago, we published a blog about Artificial Intelligence (AI) and how new writing tools like Chat GPT have taken the marketing world by storm. However, writing tools aren’t the only way that AI can be helpful to a Dealer.

First, let’s quickly define AI. AI (Artificial Intelligence) is a field of computer science that focuses on creating machines and systems that can perform tasks that would typically require human intelligence, such as learning, reasoning, problem-solving, perception, and natural language understanding. AI involves developing algorithms and computer programs that can process and analyze vast amounts of data, recognize patterns, and make decisions based on that information. AI aims to create intelligent machines that can think, reason, and learn in a way similar to humans. 

In the automotive industry, AI can be used for anything from improving the customer experience to streamlining operations. Here are a few ways in which you can use AI to your advantage as a Dealer:

Customer Experience

One of AI’s most significant ways to benefit car dealerships is by improving the customer experience. 

• AI-powered chatbots can handle customer queries and provide quick and accurate responses, even outside business hours. These chatbots can help dealerships offer better customer service and build stronger customer relationships. 
• AI-powered virtual assistants can guide customers through the buying process and provide personalized recommendations based on their preferences, making the car-buying experience more streamlined and enjoyable.

Sales and Marketing

AI can also be used to improve sales and marketing efforts. 

• By analyzing customer data, AI can help dealerships identify trends and patterns in consumer behaviour, allowing them to target their marketing efforts more effectively. 
• AI can also optimize pricing strategies and inventory management, helping dealerships stay competitive and maximize profits.

Inventory Management

• AI can help dealerships manage their inventory more efficiently by predicting which cars will sell the fastest and which models will be in high demand. This type of AI can help dealerships make more informed decisions about which vehicles to stock and when to order new inventory. 
• AI can also help dealerships optimize pricing and promotions based on seasonal trends and customer demand.

Predictive Maintenance

AI can improve vehicle maintenance and repair processes. 

• By analyzing data from sensors and other sources, AI can predict when a vehicle will likely require maintenance or repair, allowing dealerships to address issues before they become more serious and costly proactively. This use of AI can help dealerships improve customer satisfaction and reduce the risk of breakdowns and other problems.

Fraud Detection

AI can also be used to detect fraudulent activity and prevent theft. 

• By analyzing data from various sources, AI can identify patterns indicating fraudulent behaviour, such as attempted purchases using stolen credit card information. Using AI this way can help dealerships prevent financial losses and protect their customers from fraud.

Autonomous Vehicles

While fully autonomous vehicles are still developing, AI is already used in many vehicles to improve safety and convenience. For example;

• Many cars now have features like adaptive cruise control, lane departure warning, and automatic emergency braking, which use AI to monitor the vehicle’s surroundings and adjust driving behaviour accordingly.
• As autonomous technology continues to develop, dealerships must stay up-to-date on the latest advancements and be prepared to adapt their business models accordingly.

As a Dealer, there are many ways you can use AI to revolutionize your dealership. Nick Bazinet, Director of Digital Operations at Leadbox and the handsome data head face of Nick’s Notes, has a few tips to help you on your journey using AI. 

• Be Clear and Specific – You are talking to a computer, so you must tell it exactly what you want. 

• Use Examples – Don’t be afraid to provide examples of what you’re looking for to improve the accuracy of the output.

• Keep it Simple – Use natural language that’s easy for humans to understand. Even though the AI tool is not human, most AI tools use information readily available on the web, which humans likely type.

• Test and iterate – If the results aren’t what you were looking for, adjust the prompt and try again until you get the desired outcomes. 

So there you have it. You’re on your way to being robot-tastic. By using AI, you can improve the customer experience, streamline sales and marketing efforts, optimize inventory management, predict maintenance needs, detect fraud, and prepare for the future of autonomous vehicles. These AI benefits will help you stay ahead of the competition and provide the best possible service to your customers. As always, Leadbox is here to help!