The 2023 CDK Global survey (found here) delves into the innovative implementation and vast potential of Artificial Intelligence (AI) across automotive dealerships in North America. The study indicates that AI’s substantial impact on the industry is undeniable, with 76% of dealerships acknowledging a significant positive effect following AI adoption.
The survey points to AI’s powerful utility in enhancing sales, marketing, and financial and insurance (F&I) operations. For instance, in the F&I department, AI tools have demonstrated their value in risk assessment, loan origination, compliance, and insurance bundling. The survey shows that 52% of those working in Sales and F&I foresee using AI to manage dealership employees as the leading benefit, reflecting AI’s potential in optimizing dealership operations and maximizing profitability.
Moreover, dealerships’ familiarity with AI technology has markedly grown, with 41% stating they’re ‘very’ or ‘extremely’ familiar with it. The survey also predicts a high rate of AI adoption among non-user dealerships, with 60% indicating an interest in the technology’s potential benefits, including ‘Propensity to Buy’, ‘Suggested Vehicle Fixed Ops’, and AI Virtual Assistants.
Despite the positive sentiments, some dealerships expressed apprehensions. The survey reveals that 76% of non-user dealerships harbor concerns related to return on investment, setup and training costs, and employee resistance to change. Even so, they also express an optimism about AI’s potential capabilities, such as efficient booking of service appointments, comprehensive management of dealership employee skill shortages, and improved customer service.
The report concludes with a powerful insight: AI is not a replacement for human connection but an enhancer. By generating key insights and streamlining operations, AI technology can heighten customer satisfaction and loyalty. Hence, dealerships are urged to consider AI as a strategic tool to attract and retain customers, tackle employee and skill shortages, and leverage data insights. The potential for AI in revolutionizing F&I procedures and delivering a seamless, efficient experience for both customers and employees is indeed promising.