Artificial intelligence (AI) is no longer just a buzzword for auto dealerships, yet many dealers remain uncertain about how to separate hype from actionable opportunities. On the latest episode of Inside Automotive, Todd Smith, CEO of QoreAI, emphasizes that AI should be viewed as a collaborative tool that enhances efficiency across departments, rather than a threat to employees.
“Dealers who are choosing not to use AI because they fear it’s going to ultimately replace their people, they’re the ones who will lose,” Smith says. “It’ll be smart dealers who work side with the AI as a collaborative tool that are going to beat the dealers who’ve chose to sit on the sidelines.”
Currently, many dealerships are using AI to supplement legacy systems, such as handling initial customer outreach via email or text, scheduling service appointments, and managing CRM functions. Smith argues the real potential of AI lies in improving operational efficiency.
“Operations, I believe, is the real true frontier for using this type of technology inside dealership."
In a typical dealership with a payroll of $5 to $6 million, AI can streamline hiring, optimize workflows, and free staff to focus on higher-value tasks. Smith shared an example where AI analyzed nearly 400 resumes for a single engineering position, narrowing them down to eight candidates in minutes, a process that would otherwise take days.
Smith also stresses the importance of integrating AI into personal workflows first. By utilizing AI to draft emails, analyze data, or manage communications, dealers can gain a deeper understanding of the technology before implementing it within their teams. Over time, AI can adapt to individual preferences, effectively serving as a virtual assistant for daily tasks.
A major component of AI’s value is improved data management. QoreAI specializes in unifying dealership data across systems and maintaining data hygiene to ensure accuracy and consistency. On average, 40% of individuals listed in a dealership’s DMS no longer own the vehicles they purchased, and contact information can degrade by up to 25% annually. Effective data management enables dealers to target the right customers at the right time, thereby maximizing marketing efficiency and engagement.
As AI continues to evolve, dealers must adapt quickly to remain competitive. The technology will impact every aspect of dealership operations, and the ability to understand and effectively implement AI will be a critical differentiator. QoreAI provides solutions that organize, enhance, and analyze dealership data, giving dealers actionable insights for marketing, operations, and customer engagement.
