Enhancing auto customers’ experience through AI

AI has made significant impacts across industries, as well in our everyday lives, and continues to advance at a rapid pace. In the automotive industry, dealerships have embraced AI in several ways, including chatbots and recommendation engines to answer questions, process concerns and promote products, saving both time and money. But the true value of AI lies in its ability to create a more personalized, customer-centric experience.

Having a strategic plan in place to effectively implement AI tools that serve your consumers’ preferences is key to providing the best experience. There are aspects of this experience that can be enhanced with AI, but there are also touchpoints when human expertise remains superior. Finding the perfect balance between AI and human interaction is critical to delivering the best customer experience possible.

The importance of balance in serving auto customers

Using AI strategically enables your dealership to address industry trends, respond more effectively to customer needs, and gain the competitive edge necessary for long-term success in a rapidly evolving marketplace.

A recent study by CDK Global revealed that 68% of surveyed dealers believe AI has positively impacted their business. When implemented effectively, AI can offer mutual benefits to both the dealership and the customer.¹  As you look at ways to use AI, it is important to remember that each customer is unique. Some will prefer the efficiency of digital tools, while others value the personal touch of human interaction. By blending technology with human empathy, you can create a better, more tailored experience for everyone.

Where AI can help your dealership

Thoughtfully combining advanced technology with a genuine understanding of your customers’ expectations can help you create a seamless, engaging experience. Here are practical ways AI can enhance your customer service, sales, F&I, and inventory management.

Customer service and sales

1. Timely service and parts updates: Providing real-time updates through mobile notifications and vehicle tracking can keep your customers informed.¹
2. Vehicle suggestions: AI tools can recommend vehicles based on customer behavior, lifestyle and preferences.¹
3. 24/7 chatbots: AI-powered bots can handle customer inquiries 24/7, providing instant responses about vehicle models, pricing, options, financing and availability.²
4. AI-driven CRM (Customer Relationship Management): AI analyzes customer preferences, past interactions and behavior to offer tailored recommendations and follow-ups.²

Remember, always give customers the option to speak with a real person.

F&I department

1. Bundling: AI can suggest relevant accessories and F&I products for each customer.¹
2. Lending: AI can help identify the best lending options for the customer, through tools such as J.D. Power’s Automotive Lender Intelligence.
3. Faster documentation processing: AI-driven OCR (Optical Character Recognition) automates document verification, reducing errors and manual work. Customers can complete financing and registration in minutes instead of days.²

AI should be used to support your sales team, not replace them. Always ensure the customer can reach a knowledgeable representative throughout the sales process.

Inventory management

1. Demand analysis: AI can analyze historical sales data, market trends and customer preferences to predict which models will sell fastest.²
2. Automated stock adjustments: AI can dynamically recommend inventory restocking, reducing surplus and helping ensure high-demand vehicles are available.²
3. Dynamic pricing algorithms: AI can continuously monitor competitor pricing, market demand and seasonal trends to suggest the most competitive pricing strategies.²

AI is a valuable advisor that can guide your inventory decisions, but your team’s expertise and judgment are essential for responding to real-world market dynamics and delivering the best results for your dealership.

AI is transforming the customer journey, but personal connections and trust remain essential. Dealerships that embrace AI as a complement to — not a substitute for — human expertise can better meet customer needs and build lasting loyalty. By blending innovative technology with genuine personal engagement, your business can stand out and drive sustainable growth.

1. “New research highlights impact of AI in automotive.” CDK Global. 13 November 2024

2. “How AI is Reshaping the Car Dealership Business Model in 2025.”Charter Global. 13 March 2025