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How AI is Enhancing, Not Replacing Dealership Employees

  • November 25, 2024
7 min read
How AI is Enhancing, Not Replacing Dealership Employees

Table of Contents

    Ro Oranim

    Ro Oranim

    Table of Contents

      As Artificial Intelligence continues its rapid rise, many people harbor a genuine fear that smart tech solutions will make them redundant. This conversation has taken over many headlines and become the center of every stage, particularly in the automotive sector. 

      It’s true that AI is gaining traction in various industries by offering unprecedented efficiency and personalized experiences. But contrary to the widespread fear that AI is coming to steal dealership jobs, the recent report, “The 2025 State of AI Adoption in Car Dealerships,” commissioned by Fullpath shows that, rather than pushing employees out the door, dealership leadership hopes to see AI empower them, enhancing their performance and enabling them to provide top-notch customer service.

      Rethinking the Role of AI and Dealership Job Security 

      Skepticism and fear is only natural when faced with rapid technological changes. We’ve seen the same fear throught the decades as the world has adopted and adapted to the changes and optimizations new tech brings. It is important, however, to take a second look at the fear that AI spells doom for dealership jobs. The survey report reveals that, contrary to popular belief, dealerships are not looking to replace their employees with AI. A strong 72% of survey respondents indicated that they view AI as an enhancement to current operations, rather than a replacement for their valued staff.

      This isn’t just a sentiment echoed by dealership employees. Leadership — from dealership executives, owners, and general managers hold a resounding belief in this narrative, supporting the view that AI tools supplement rather than supplant human roles. These decision-makers understand that AI’s value lies in boosting their workforce’s capabilities, not eliminating them.

      5 Ways AI is Enhancing Dealership Roles

      Customer Relationship Management

      AI is an invaluable asset for analyzing massive quantities of customer data to uncover buying patterns and preferences. AI equips dealership teams with insights that allow them to personalize their interactions and offer recommendations to car shoppers that truly resonate. This is further supported by the fact that 31% of survey respondents indicated that customer relationships management is one of the areas with the highest level of AI adoption in the industry. 

      Take, for example, a customer who has a lease coming to an end in the next few months who has recently been browsing your dealership website. AI, by pulling from multiple data sources in real time, can alert the dealership team about this potential opportunity. This data alert can then empower the dealership sales team to then take the customer’s identified vehicle of interest and propose a relevant, valuable deal to the customer to close yet another sale, increasing the lifetime value of the relationship and creating more opportunity for future sales. 

      Sales and Customer Service

      AI-powered chatbots have become increasingly popular following the release of OpenAI’s ChatGPT. Dealerships can leverage these AI-powered chatbots to handle incoming customer questions, providing data-driven, in-depth answers that can help customers on their buyer journey. This not only creates an excellent customer experience, it frees up dealership employees to focus on what they do best: solving the more complex issues that arise and providing personalized support. 

      This unified effort on part of AI and dealership employees not only enhances the customer experience, but also empowers employees to tackle higher-level challenges by eliminating repetitive tasks. Because AI is continuously learning and processing massive quantities of data, the technology can also analyze customer interactions to identify areas for improvement to be implemented by the team, a combined effort that will ultimately drive up customer satisfaction.

      Dealership Marketing and Advertising

      AI’s transformative power in the realm of marketing cannot be overstated. By analyzing vast amounts of customer data, AI enables dealerships to fine-tune their marketing strategies. Instead of relying on broad assumptions about customer preferences, AI provides actionable insights that help dealerships identify and segment their audience into highly targeted groups and automatically generates relevant content that will resonate with those specific segments.

      This means that marketing teams can develop tailored digital ad, email, and SMS campaigns that speak directly to the interests and needs of potential buyers. For instance, AI can sift through customer behavior data to determine which of your offerings are most appealing to a particular audience or segment, and automatically generate a campaign with personalized content that will capture attention and drive shopper engagement.

      Predictive Maintenance

      AI can help service departments predict vehicle maintenance needs before they become urgent by analyzing vehicle data to foresee potential issues, allowing service teams to reach out proactively. This not only enhances customer loyalty but also minimizes vehicle downtime and unexpected repair costs creating an “everyone wins” cycle.

      Employee Training and Management

      AI can revolutionize how dealerships approach employee development. By providing personalized training recommendations, staff can continuously improve their skills and stay ahead of industry trends. Streamlining administrative tasks—like scheduling and performance reviews—allows managers to refocus their efforts on bigger strategic initiatives rather than burying them with endless busy work.

      AI Benefits for Small and Mid-Sized Dealerships

      It’s a common misconception that AI is only for large dealerships. In fact, 36% of survey respondents strongly believe that AI tools are not only beneficial, but essential for small and mid-sized dealerships. Additionally, 47% of respondents indicated that dealerships with fewer cars on the lot should be leveraging AI to a greater extent to maximize efficiency and overcome data activation challenges so they can continue to grow and optimize their business. This highlights the potential of AI to level the playing field in a traditionally uneven marketplace.

      Empowering Dealerships with AI Using Fullpath’s CDP

      Leading the way in AI for car dealerships is Fullpath’s enhanced Customer Data Platform (CDP). This innovative solution equips dealerships with the tools they need to harness the power of AI effectively by activating their first-party data to create exceptional customer experiences that drive long-term customer loyalty. 

      Fullpath’s CDP is designed to unify dealership data from various sources, breaking down silos that hinder efficiency. By bringing together a dealership’s CRM, DMS, inventory, website data, ad data, and more into a single, comprehensive platform, Fullpath enables dealers to take full control of their data and activate it to drive better business outcomes. 

      Fullpath offers dealers the ability to: 

      • Gain Real-Time Customer Insights: With Fullpath’s CDP, dealerships can access real-time shopper data from across multiple sources that offers a deep understanding of customer behavior. This means sales and marketing teams can leverage real-time insights to engage customers based on their latest needs and preferences with timely and relevant communications.
      • Create Personalized Customer Experiences: In today’s competitive retail automotive landscape, personalization is paramount. Shoppers have come to expect it at high levels and without it, dealerships can miss out on major opportunities. Fullpath’s CDP empowers dealerships to tailor their outreach, creating customized experiences based on individual customer preferences and interactions. This approach not only enhances customer satisfaction but also increases the likelihood of conversion and loyalty.
      • Improve Operational Efficiency Across Departments: By centralizing data, Fullpath’s CDP streamlines operations across all dealership departments—from sales and marketing to service and support. With everyone working off the same data, collaboration improves, and processes become more efficient, reducing redundancies and increasing productivity.
      • Increase Revenue and Customer Satisfaction: The ultimate goal of any dealership is to grow revenue while ensuring that customers feel valued and understood. With Fullpath’s CDP, dealerships are not only able to engage customers more effectively but also leverage data-driven strategies that lead to higher sales and repeat business. The result is a win-win situation where both dealership profitability and customer satisfaction soar.

      By integrating Fullpath’s CDP into their operations, dealerships can confidently navigate the complexities of AI and data management. Click here to book a chat with the Fullpath team and explore how our Customer Data Platform can elevate your drive success in the age of AI.

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