A growing number of automobile dealers are starting to at least explore how AI can be utilized at their dealerships, according to a new study by Cox Automotive.
Surveying 537 franchise dealers during its AI Readiness in Auto Retail Study, Cox Automotive found that 60 percent of dealers are at least testing out AI. It found 15 percent of dealers are embedding AI tools into workflows and decision-making.
The study’s release is timely also for independent dealers as the NIADA BHPH Dealer Forum’s opening general session on Sunday, Nov. 9, will shine a spotlight on how AI is transforming dealership operations. Phil O’Sullivan of ID Privacy will demonstrate different business solutions for dealers using the power of generative AI.
The Cox study noted that more than 80 percent recognize that AI is here to stay and 60 percent feel investment in the technology will be critical to future success.
“Dealers don’t care about AI for AI’s sake,” stated Lori Wittman, president of retail solutions, Cox Automotive, in a release about the study. “They care about outcomes they can measure— more cars sold, lower inventory costs and higher gross profit. That’s why we’re focused on delivering results, not just pushing technology.”
Marketing and customer engagement are the top areas where dealers are utilizing AI, including the following areas:
- Engaging with customers 24/7 using real-time automated text, chat, or email
- Creating personalized emails and texts
- Using personalized messages to predict which consumers are ready to buy/targets
Several dealers expressed that they needed to get more training and education about AI, including its algorithms, before utilizing. Concerns about accuracy and errors were the top barrier expressed about adoption.
