The Future of Artificial Intelligence in the Auto Dealership


Buying a car is a lengthy process. It consumes the significant amount of time from researching about the different brands and their respective models, features which eventually leads to a purchase decision. Considering the amount of time and financial investment that goes into car buying, consumers expect auto dealerships to give a walkthrough of highly personalized customer experience.

If dealers are not practising the right set of metrics and tools and their usage than there are huge chances of receiving a criticism from consumers for not meeting their expectations. Eventually, it can become the matter of disappointment to the dealer and create a negative impact on their reputation.

Smart dealers have started looking forward to deploying new technologies employing artificial intelligence (AI) to improve the customer experience. Traditionally, a dealership management system is widely used to gather and store customer data since ages. Hence, there will be no scarcity of data with dealers as they have been collecting it for years manually or digitally. AI applications can analyze this data and help in improving the sales and marketing strategies to aggravate the emotion and logic in their customer while they are shopping a car.

Here’s a look at how artificial intelligence will play a role in the future auto dealership.

Artificial intelligence in customer service transactions

AI tools like chatbots and virtual assistants have set an amazing example for auto dealers in managing their inquiries online. These applications work best for the basic level of customer service transactions like checking the availability and booking an appointment for vehicle service.

Apart from online inquiries, dealers are likely to receive them from offline channels too. More they receive it over the phone when they face challenges at various points throughout the customer journey. From the sources, we came to know 70% of calls to dealerships contain the query related to parts or service, and about 10% are new sales opportunities.

The question that arises is “Are dealerships capable enough to make the most of opportunities come to their way from different channels? Probably not, as 20% of the incoming calls remain unanswered due to the inattentiveness or are abandoned by the caller. To overcome the mismanagement of inbound phone calls which is where AI-based speech analytics can step in.

The combination machine learning and natural language processing are used to develop speech analytics. Each call will get recorded and so the content of the call can be further used to understand the concerns of inquiring customers and provide a better solution to bring the best outcome of the overall process.

Dealers are thus transforming their customer experience and improving their business, with these broad-scale insights achieved from the artificial intelligence technology and offer real customer interactions to address problems accurately.

Smart Marketing Tactics with Artificial Intelligence

Marketers can understand their customers more closely using the data collected from different touchpoints with AI technology. This will help them to target their customers efficiently avoiding the unnecessary and irrelevant touch points. After knowing the preferences of their customers, a marketer can reach their target audience by creating attractive offers on products and service for better business.

This way it will also avoid the efforts and energy invested behind wrong audiences which eventually results in low conversion rate. Instead, the wise idea is to apply AI technology to the system and focus on customers who are genuinely interested in their brand or services and drive customers toward the channels that help increase revenue.


AI not only stands to help the auto dealers to operate their marketing and sales efficiently but it also adds an outstanding value to the business. At the same time, customers feel happy to receive personalized service which they admire and give an emotional connection in the entire decision-making process. Customer journey that starts with the offer or campaign they see to buying a new car or schedule a service. Now with AI and analytics, dealers can never miss the opportunity, identify the improvement areas in their current processes and flip the game of customer service achieving great business.

Gateway Technolabs

Gateway Technolabs

Marketing & Communication Department at Gateway TechnoLabs Pvt. Ltd.
SINCE 1997.
Gateway Technolabs

Published by

Gateway Technolabs


Leave a Reply

Your email address will not be published. Required fields are marked *