How to Reshape the Dealership Business with AI

Auto Tech Outlook | Sunday, September 12, 2021

In the current scenario, artificial intelligence can streamline the work process in the automotive industry by providing greater assistance.

FREMONT, CA: Artificial Intelligence (AI) is controlling all the industries in a way or other. It is shaping the future of the dealership sector by bringing many benefits to dealers. In the automotive industry, AI is applicable in four segments, including autonomous driving, smart manufacturing, mobility as a service, and connected vehicles.

Here are some of the challenges the automotive industry face and how AI is improving them.

• Customer Expectations:

Artificial intelligence is bringing up humans these days. Customers demand a convenient and transparent experience, and if not provided, they tend to shift to other dealers. Service management software serves the customers according to their needs.

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• Fall in new car sale:

The dealers are losing money on new vehicles sale, and used-car sales are outpacing the new ones. According to The National Automobile Dealers Association’s 2020 midyear report, the average gross profit on a used vehicle sale is about 11.6 percent, and it is only 5.6 percent on a new vehicle.

• Data storage:

Data storage issue poses a significant challenge in front of dealers. It is difficult to store data safely in human hands. Overflowing data in DMS is of no use without proper integration. Dealers can take advantage of that by synchronizing it.

• Catastrophic weather conditions:

No one can predict mother nature easily. Weather events disrupt the dealership operations of the automotive industry. These unexpected conditions lead the industry to a significant loss.

AI-enabled technologies can help dealers in the following ways:

An effective customer service:

AI is leveraging customer service experience in efficient ways. It provides a platform for the dealership to enhance customer service needs. Dealerships are installing AI to become more technical. The AI programs analyze the calls dealers have with the customers; this process will enable staff to understand the customer needs better. The chat boxes are available, which can gather initial information from the customers to learn about their demands. In addition, the sales management software plays a significant role.

Leverage the data:

The data needs intelligence to process. AI can help the dealership by leveraging data and storing it. Dealership business deals with a pile of data every day, and it is a difficult task for humans to store the data for a long time in a correct format. AI technologies can analyze and save them in cloud storage for future reference.


Dealership business is always under a threat of hacking; AI technologies can safeguard the company from security threats. AI-enabled machine learning can detect suspicious activity across the entire system to keep valuable data safe.

Targeted marketing:

The advanced technologies will make marketing efforts more successful. Web analytics will analyze the target audience, location, requirements, and interests. With the results based on the analysis, dealers could easily automate ads to approach the customers. The dealers can send automated emails to the focused audience from time to time, which will make sales easy.

Assist more efficient service repair:

Generally, customers fail to keep a record of their vehicle’s service needs, so dealers can play a significant role to guide the customers on time. Virtual assistants can help the dealers to contact the customers by sending automated reminder emails and making calls. It will help the clients to schedule an appointment without fail. With the assistance of these services, dealers can easily reach out and will get the attention of the customers, which will become profitable for the business.

The features of AI like machine learning and deep learning can benefit the industry by generating higher productivity. In coming years, these technologies will definitely bring change in the dealership business by increasing safety and efficiency.

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