Although still in its infancy, AI is being used in businesses around the world to make life easier in numerous ways, including the automation of tasks, data analysis and decision-making. It can also be used for creative purposes, scientific research, and ensuring safety through fraud prevention and cybersecurity.
Accelerating
While many people enjoy the entertainment side, including creating AI images and videos, in a move that has surprised many, those in the motor trade have quickly moved up through the gears to put it to work helping buyers find the right vehicle.
This means that while the software is carrying out labour-intensive tasks such as matching a vehicle’s size, range or colour to the needs of the buyer, human staff can put their expertise to better use and deliver a personal service that will help close the deal.
And, according to Startline Motor Finance, things are accelerating quickly, with almost two-thirds of car dealers (62%) turning to AI within their business.
Research found that 31% of car dealers are using the technology to handle initial customer contact, while 38% are relying on it to find the right vehicle for buyers.
The Startline Used Car Tracker shows 26% are also turning to AI to help consumers to identify the best finance option. It can also be used to look at motor insurance cover and any other products that might be of interest to the buyer.
These are vital steps in the car-buying process and it is interesting to see that such a large percentage of dealerships are already relying on technology to break the ice.
Human touch
Despite the uptake, there are still some dealers who are unconvinced by the technology. The tracker revealed that 16% are not convinced that AI could help them and 18% say they are happy with their existing processes.
Still undecided about the capabilities, 6% of dealers feel it isn’t yet sufficiently mature to meet their needs. This figure will change as more people experience the technology and its success, or otherwise, will ultimately be determined by whether customers buy a vehicle at the end of the process.
Paul Burgess, CEO at Startline Motor Finance, said: “The level of adoption we are seeing here is perhaps surprisingly high, given there are not yet that many specialist AI products for dealers available.
“What is also fascinating is that the technology is almost exclusively being used in a customer-facing role, for lead handling, car choice and finance. These are tasks that have traditionally been seen as part of the core expertise of dealer staff.”
Of the dealers turning to AI for customer engagement, Starline found that 10% believed it has been successful while 8% felt it was unsuccessful.
Mr Burgess said: “These are curious figures open to a wide degree of interpretation. The response rates are very low compared to the two-thirds of dealers who are using AI, perhaps suggesting that a large percentage have yet to make up their minds.
“Also, both those feeling satisfied and unsatisfied with their experiences almost cancel each other out. This could indicate overall that AI isn’t yet delivering on dealer expectations, at least in this relatively early phase.”
It is interesting that car dealers have already found customer-facing uses for AI, particularly as there isn’t much specialist software available at the moment. There are things that computers can’t do and things that take people a disproportionate amount of time. Hopefully car dealers can strike a happy balance between the two.
