Car dealers are eagerly adopting new artificial intelligence tools, according to research by software provider CDK Global.
An overwhelming majority of car dealers now feel that artificial intelligence has helped their businesses grow. In a survey of 230 dealership executives and managers, 76% said AI had already made a positive impact on their business. Of the respondents who planned to integrate the technology in the future, 60% held optimistic expectations, a 4% jump from a previous poll in 2021. Participants also believed that AI had the potential to benefit multiple departments: service (63%) was seen as the most likely to profit from adoption, followed by sales (61%) and marketing (46%).
Although car dealers have rapidly warmed up to artificial intelligence, many remain apprehensive toward the technology. CDK Global’s research indicated that AI-hesitant retailers feared the loss of human interaction and limited returns on investment, along with difficulties in preparing employees for the new technology. However, Emily Hernandez, CDK data and intelligence product marketer, urged anxious retailers to reconsider. “AI is not meant to replace staff; rather, it can help employees identify customer’s needs and customize solutions that fit their budget and lifestyle while enhancing the overall consumer experience,” she writes. “Adopting AI resources like machine learning and natural language processing can positively impact dealerships as the auto retailer business model continues to evolve.”
CDK Global’s survey results indicate how quickly the automotive industry’s perspectives on artificial intelligence have shifted in favor of the new technology. While often criticized for their resistance to change, car dealers are now at the forefront of AI integration, which is why the business is now inundated with services and products to choose from. As software improves and the use cases expand, retailers can gain a competitive edge by becoming early adopters.
