Where AI is Getting it Wrong for Car Dealerships

Every evolution comes with its own challenges. Why would AI adoption be any different?

While the potential of AI is undeniably exciting, many dealerships are stumbling into a range of technical and institutional hurdles that stand in the way of fully leveraging these powerful tools. From navigating complex vendor solutions to changing ‘the way it’s always been done,’ dealers are struggling to make the AI tool fit into existing frameworks rather than leveraging the tools to their fullest potential. Proper adoption requires a combined effort on part of dealers and vendors to ensure that the tools match the needs of the dealerships and that the tools can be properly utilized by their teams. This aspect can make or break the successful adoption of AI and is a crucial part of the future success of the automotive industry.

Let’s take a look at some of the clearest instances where AI is going wrong for car dealerships and explore some potential solutions that can set the stage for remarkable industry growth and success as we move forward into a technology-driven future.

The Data Deluge Dilemma

There is no doubt that data is the latest not-so-secret weapon for dealerships. However, with an overwhelming barrage of data generated by multiple AI tools, dealership teams may find themselves struggling to keep their heads above water. Instead of feeling empowered by data, they may instead struggle to focus and identify the most critical aspects that can be used to create exceptional customer engagements. This overwhelm disengages dealership employees and deters them from trying other AI solutions in other applications across the dealership, tainting the AI experience. It also jeopardizes the overall customer experience - the complete inverse of what is intended when dealerships implement AI.

Streamlining the data experience on the vendor side is essential in combating this phenomenon. Dealers need to be careful about the AI solutions they implement, and avoid just jumping on the bandwagon quickly because that is what everyone else is doing. It’s critical to find the right vendors for the specific needs of each dealership, focusing on those vendors who offer user-friendly interfaces and dashboards that bring the most important - and consolidated - information to the surface. Features to look out for include smart summaries of the shopper journey, vehicle of interest highlights, or a calculated total of customer equity along with potential financing options. These core pieces of surfaced data, when offered, enable quick decision-making on part of the dealership team and can largely impact the next customer engagement.

The Turmoil of Too Many Tools

The prospect of the success AI can generate is undoubtedly exciting. While it may seem that having multiple AI solutions equates to better outcomes, the reality is often quite the opposite. Navigating a patchwork of dashboards and interfaces will likely cause overwhelm for a dealership team, leaving critical tools ignored or underutilized leading to a waste of precious resources.

The best way to combat the overwhelm of too many tools on the dealership side is to select vendors that offer multiple tools in one consolidated platform. This not only simplifies the operations that come with onboarding AI tools and teaching your team how to use them, it also helps your teams get the most out of what the AI has to offer rather than getting lost in a maze of interfaces.

Alternatively, it may be time for dealerships to consider allocating resources specifically to the management of AI and data management tools. Specialized team members can be tasked with navigating the dashboards on part of the team to help eliminate general overwhelm while still ensuring the important pieces of information are properly disseminated across the team.

On the vendor side, there must be a focus on offering features that can support busy dealership teams on the go. There isn’t always time to stop and check a maze of dashboards. Features like real-time alerts or daily digests sent through email, apps, or text message can alert teams to new opportunities. This can help minimize dashboard overwhelm, empowering teams to prioritize high-value, high potential opportunities without the need to navigate behind the scenes.

Aligning AI and Authentic Interactions

We’ve examined some of the internal dealership implications of data and AI overwhelm - now let’s take a look at the AI customer experience. While AI can handle a plethora of tasks, it should never replace the valuable human connection with customers. Customers who are looking to actively reach out to the dealership - by phone, email or any other manual outreach efforts - have clearly exhausted their digital efforts. They may have already chatted with your chatbot, replied to your SMS bot, and are now looking for a human connection to fill in some blanks. When AI fails, dissatisfaction prevails - and winning a customer back from frustration is a far more difficult task than providing an initial positive experience.

Achieving the right balance requires a commitment to preserving the human experience alongside AI. This should be the focus for vendors creating customer-facing AI; the ability to identify when a human touch is necessary by identifying the tone of the customer they are chatting with so a human can be pulled in for some much needed nurturing, personalized support that can cater to the individual customer’s needs. That delicate balance - one where AI and humans come together to provide customers with exactly what they want and need - is what will ultimately lead to dealership success.

Embracing the AI Evolution

AI holds tremendous potential for the automotive industry. By addressing the challenges of data overwhelm, complexity of use, and the integrated AI-human experience head-on, dealerships can unlock the full transformative power of AI and strategically implement it and uncover unprecedented opportunities for growth and success.

The road ahead is open and filled with exciting possibilities powered by technology. By fully embracing AI and making moves to improve it, dealerships are paving the way for a brighter, more efficient future that will redefine exceptionalism in the automotive space.