AI - Artificial Intelligence for Car Dealers

I think I'm starting to understand how to explain how AI will impact search engines.

When we have a question, most of us go to Google. Google replies with a list of resources for you to read. If we ask the same question to an AI service, it'll reply with an answer using the information from those same resources.

AI bites the hand that feeds it! AI is removing the traffic incentive for website creators by answering questions without linking to the source.

  • Google replies with a list of websites rewarding the best content with traffic
  • AI replies with answers using content from websites without rewarding them
  • We like getting answers more than a list of websites, so AI will replace SERP (Search Engine Results Pages)
  • With the incentive to create great content gone, where will AI get its answers?
  • Hmmm... Somethings gonna break!

Think of AI like a supercharged Siri embeded in all of the tools we use. For example...

A customer is shopping for new tires... If they go to Google asking how much should 4 new tires cost. Google will reply with a list of resources for you to read, but will have no idea which tires you need. The AI service could reply saying, I'm assuming you need tires for your 4Runner because its been almost 30,000 miles since they were changed last, then it'll pick the best tires for the 4Runner and give you a price installed. To top it off, it'll recommend a good local shop to get the work done and ask if you want to schedule an appointment.

Want a website... Describe to an AI service what kind of website you want, it'll reply with several examples. You pick one the best one and tell it what you want to change. Keep tweaking until you have exactly what you want. They say no-code apps are the future, well AI services will replace no-code platforms.

Inbox zero becomes a real thing... Tell the AI service to write a response for you, tweak it a bit and you're done in less than a minute. More email replies can be completed right away, do it now and be done with it.

How does AI help dealers?

It'll make Digital Retailing a reality... This is all about picking up a conversations where they left off, right up an AI's alley. Assuming the AI has all of the data from previous conversations, sales and service history, inventory, OEM information and any other source available, it could easily write personalized email replies answering questions. But even better, it could switch the customer to a texting conversation trying to close deals... today Junior! When the AI can't move a deal forward, but it predicts a good chance of closing the deal, that's when AI messages a sales manager for a T.O.

When AI's are continuously learning from prior experiences, it would know the best paths to close more deals.

F&I is an interesting one... Where's the break even point with AI versus a finance person? If a finance manager makes $2000 per car and spins 50 deals a month, that's $100,000 per month generated. Say it cost's the dealer $20k to pay the finance manager, that nets the dealer $80k.

If AI spun those deals, or more accurately, included finance products in the front end, it would have to make $1600 per car for the dealer to break even. How much per car would the dealer accept to eliminate the finance department?

Now what does the dealership sales department look like?

Sales managers and delivery specialists only! The people cost to sell a car looks a whole lot different.

  • AI will respond to all leads and set up deals for managers to close.
  • Salespeople will become delivery specialists handling showroom traffic only.
  • Sales Managers are phone closers teed up by the AI service.
  • Finance managers don't exist.