Events like the pandemic, the Great Resignation, and supply chain issues have created many changes in recent years for auto dealerships. After a brief dip, dealerships are continuing to witness a rebound. Stock is filling up once-empty sales lots, and consumers are returning for vehicle purchases.

The most successful dealerships are in no way resting on their laurels. They have begun to leverage artificial intelligence (AI) to proactively adapt and gain a competitive edge in the automotive industry.

Popular auto brands have embraced AI in various ways to enhance their operations and customer experiences. By leveraging AI technologies, brands like Mercedes-Benz, Ford, and Hyundai aim to provide advanced features, personalized assistance, and seamless vehicle and driver integration. Now dealerships are seeking ways to provide that same level of personalized assistance and seamless customer service with the help of AI.



One significant way they are harnessing AI is through the utilization of chatbots.

These intelligent virtual assistants can provide personalized assistance and support to customers, addressing vehicle inquiries, financing options, and more. The chatbots respond to queries 24/7, allowing potential customers to gather information and make decisions anytime. By leveraging chatbots, dealerships can automate tasks like scheduling appointments or following up with leads, leading to improved operational efficiency and reduced wait times for customers, ultimately resulting in a better overall experience.



In addition to employing chatbots, dealerships use AI to analyze customer data and make sales predictions. The results empower dealerships and automakers to better understand their customers’ needs and preferences.

This deep understanding of customer behavior enables dealerships to tailor their marketing and sales strategies more effectively, creating personalized customer experiences. By leveraging AI-powered analytics, dealerships can make data-driven decisions, optimize inventory, and improve customer engagement.


Digital Showrooms

Some automotive brands, such as Fiat, Hyundai, and Kia Germany, have taken their AI adoption to the next level by entering the Metaverse. These brands have opened immersive and interactive digital showrooms where AI plays a central role.

Eventually, dealerships could benefit from similar access in the future. The evolving Metaverse could provide an avenue for viewing vehicles, test-driving them virtually, and interacting with salespeople more fluidly versus shopping on a website.

In these virtual environments, customers can explore and interact with AI-powered systems, receiving basic information and answers to their questions. This innovative approach provides a unique and engaging shopping experience and demonstrates how dealerships push boundaries to leverage AI technologies.


A Cautionary Word about Relying on AI

While AI presents significant opportunities, inaccurate responses, and flawed data mean more focus on data accuracy and providing appropriate human oversight to deliver reliable and effective AI-driven customer experiences.

AI cannot run on cruise control while dealerships take a backseat approach to drive this trend.

Actively leveraging AI technologies such as chatbots, data analytics, and immersive digital showrooms to stay ahead of the curve makes good sense for some dealerships. These advancements enable dealerships to provide personalized assistance, automate tasks, gain insights into customer behavior, and create engaging experiences.

While challenges exist, integrating AI technologies allows dealerships to enhance efficiency, deliver exceptional customer experiences, and maintain a competitive edge in the automotive industry.