The Road Ahead for AI in Automotive Retail

Artificial intelligence is no longer restricted to sci-fi movies or futuristic dreams. It’s now firmly embedded in the mainstream (ChatGPT, anyone?) and that includes the automotive industry.

The applications and benefits of AI in the automotive retail industry are vast and more roll out every day. AI already permeates many CDK solutions to help dealers better engage with customers and enhance business operations.

For example, predictive modeling embedded in the CRM gives visibility into a customer’s propensity to buy so Sales knows which leads to act on immediately. Machine learning helps Service departments anticipate potential repair needs based on a customer’s vehicle, mileage and driving patterns for more personalized upsell presentations in the lane.

Both of these examples point to AI’s ability to help dealership staff work in a more efficient and personalized way as well as help customers receive tailored information and move through both Sales and Service faster. The key to dealership productivity and customer satisfaction is to speed up processes and give customers the consultative approach they want.

Tackle the Real Challenges Dealers Face Today

CDK continues to leverage AI sensibly to tackle the real challenges dealers face today. And we stay committed to infusing AI within existing workflows so there’s no need to learn entirely new and separate tools. In that spirit, we rolled out additional AI features within the Dealership Xperience to help both Sales and Service with the following common problems.

Employee Shortages

Automotive dealerships, like many companies, are suffering from staffing shortages. Dealers struggle to find workers — whether they’re Sales Reps or skilled Service Technicians. High-employee turnover compounds the problem. The average dealership turnover rate was 34% in 2021, according to the annual NADA Dealership Workforce Study. Some studies place that number even higher today.

AI can help make up for staffing shortages by taking over some time-intensive and monotonous tasks so dealerships can be more productive without adding more people. AI solutions are available 24/7/365, offering engagement outside of regular business hours. This ensures dealerships can improve customer satisfaction and optimize revenue opportunities without needing more staff.

For example, AIVA, the new AI virtual assistant from CDK, can be deployed across the dealership to answer phone calls, respond to text messages, and craft and send emails in 52 languages. Consumers get hyperpersonalized, human-like engagement with Sales and Service departments around the clock, while staff is freed up to handle more complex tasks.

AI is the fastest way to respond to leads, answer consumer questions, and schedule service appointments so fewer employees can do more in less time while delivering a great customer experience.

Training Needs

As inventory floods lots again and Sales and BDC employees must sell instead of simply taking orders, it’s likely sales skills need a tuneup. Add on the fact that automakers continue to roll out EVs, which staff need to get up to speed on fast. A recent CDK survey found that consumer confusion runs rampant about both the technology and costs of EVs, and it’s the dealer who they want and trust to give answers.

AI offers tremendous training opportunities for the Sales department and beyond. AI-supported videos and learning tools, including gamification, can be personalized for employees and used on demand to improve product knowledge, communication skills, performance and customer engagement.

Professional Communications

When consumers are shopping for their next vehicle, it’s likely they’ll reach out with questions. An automated response with no acknowledgement of the customer’s questions is a sure way to lose an opportunity. With an AI-integrated CRM, staff can respond with highly personal and professional communications that take a fraction of the time to compose.

AI provides information about propensity to buy, where the customer has been shopping online and for what vehicles, and even what vehicle is currently in the customer’s garage. That data can be included in an email template to craft a note that makes the customer feel understood, heard and taken care of, dramatically increasing the odds of a sale.

Data-Based Decision Making

The days of running a dealership based on hunches are over. Dealers now have full access to AI-driven analytics tools to make data-based decisions to optimize performance and profitability across departments. Advanced analytics include enterprisewide, detailed and configurable reports with competitive benchmarks, goal management and AI-driven predictive forecasts — saving dealers time and preparing them for the future.

Coming soon, dealers who use the CDK Dealership Xperience will be able to query AIVA to find answers and reports for business questions. Ask simple questions and AIVA will reply with smart answers and links to reports with further information.

Human and AI Collaboration Drive Success

Despite media and industry chatter about AI replacing human employees, the car business will always be about building relationships with customers and making human connections. Consumers still value the personal touch and emotional connection that only human agents can provide, particularly when making significant purchases like vehicles. AI enhances and augments the people and processes dealerships have in place to increase productivity, profitability and customer satisfaction. Act now to reap the full benefits of what AI can do for your dealership.