GENERATIVE ARTIFICIAL INTELLIGENCE (IA): A MAJOR ASSET FOR DEALERS
(Article published in L’Automobile magazine, August 2023)
By Piero Facchin
In today’s rapidly evolving digital landscape, artificial intelligence (AI) has become a game changer for companies in a variety of sectors. One of the most exciting applications is generative AI, which holds enormous potential to transform the automotive industry. Dealerships, in particular, stand to benefit considerably.
Generative AI is a sub-field of artificial intelligence that focuses on generating new content based on patterns and information it has learned from existing data, such as text, images, audio or even video. With its unique ability to create new content, this technology is a powerful tool for improving productivity by automating tasks and significantly generating creativity.
Revolutionizing the Customer Experience
For dealers, delivering an exceptional customer experience is crucial to building brand and customer loyalty. Generative AI can play a central role in enabling personalized interactions and recommendations. For example, by analyzing customer data and preferences, AI-powered generative chatbots, such as DealerAI, can communicate with car buyers in a personalized conversation, guiding them through the buying process and recommending the most appropriate options based on their preferences. As a result, highly engaging potential customers generally have a higher rate of connection with the product that will suit them best.
Optimized Inventory Management
Efficient inventory management is another area where generative AI can significantly benefit dealers. By analyzing historical sales data and current market trends, the technology’s algorithms can accurately predict demand by vehicle model, enabling dealers to optimize their stock levels. As a result, companies can benefit from improved stock rotation and increased profitability.
Marketing and Advertising 2.0
Marketing and advertising are critical to the success of any dealership. Generative AI can revolutionize these aspects by creating compelling, visually appealing content such as images and videos that resonate with potential customers. AI-generated content can be tailored to specific target audiences, increasing the effectiveness of marketing campaigns and driving higher conversion rates.
Generative AI creates many profitable opportunities for automotive dealers to improve their operations, offer personalized customer experiences and optimize various aspects of their business.
AI to Stay Competitive
As the automotive industry continues to evolve, the integration of generative AI solutions is becoming increasingly crucial for dealerships to remain competitive and meet the ever-changing demands of their customers. Mr. Bryan Xu, cofounder of DealerAI, explains that generative AI could respond to potential customers at any time of the day or night, regardless of the number of operators employed by dealerships, thus increasing sales opportunities and the quality of customer service.
The DealerAI platform, developed by Mr. Xu and his team, is already in use in some 30 dealerships across Canada.