Artificial Intelligence, or AI, is changing the way many in the industry navigate retail automotive, and dealers are seeing the benefits. According to a recently released study from CDK Global, approximately 68% of dealerships believe the adoption of artificial intelligence has had a positive impact on their businesses.
On today’s show, we’re pleased to welcome Peter Kahn, Senior Director of Market Research at CDK Global, to walk us through the study, and how dealers are feeling today about AI today.
CDK Global recently released the findings from its What Automotive Dealers Think About Artificial Intelligence survey that investigated the use of artificial intelligence tools in automotive retail today and the perceived benefits it will provide dealerships in the future. By doing this survey, CDK Global aimed to find out how emerging AI technology could be used for productivity enhancement in the automotive retail space. A little more than 250 automotive professionals were sampled throughout the country, with the average dealer owning three to five stores. As far as volume goes, these dealers sell on average 250 to 300 cars every month.
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The study revealed that 59% of car dealers surveyed struggle with employee staffing and skill shortages. Finding new customers is important but employee burnout can have negative effects as well. Additionally, 75% of dealers surveyed are familiar with the concept of AI and 68% are already using some form of AI. An additional 35% of dealers are planning to implement AI in one to three years. Two-thirds of the dealers that are using AI today also say that they are seeing benefits from the technology.
From his perspective, Kahn says it looks like AI is being utilized mostly to manage incoming leads and find new customers. However, AI can be used very effectively in the fixed-ops department, especially during staffing shortages. Predictive service is an innovative tool with untapped potential that can improve trust and transparency with the customer, and get repairs done faster. Having the correct diagnosis quickly and communicating to the customer in a seamless way can lock in a feeling of confidence.
For the car dealers that are considering adopting AI, Kahn says why wait? Now is the time to look seriously at AI, and ask how can I use this technology to address operational pain points?
Learn more about CDK Global here.
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