AI Can Help Dealers Boost Customer Service and Make Financial Decisions

Artificial intelligence is poised to revolutionize automotive dealerships, with dealers increasingly turning to AI to drive financial decisions and enhance customer experiences. Rich Sands, CEO of Stella Automotive AI, predicts a rapid integration of AI technology, stating, "My prediction is within the next 23 months if not sooner, you'll start to see AI providing options for decisioning — workload reduction plus this decision capability to help you optimize your customer experience," during his address at the Automotive Forum New York on March 26.

Stella Automotive AI specializes in conversational AI for retail technology, uniquely positioning them to lead this technological revolution. Sands emphasizes the role of AI in streamlining operations and optimizing customer interactions, stating, "The key thing about AI is how we can actually solve multiple problems at the same time."

Despite AI's prevalence in automotive finance, its full potential remains untapped, according to a report from Informed.IQ, which notes that AI, automation, and digital tools have not yet significantly impacted costly auto loan errors and hesitation. However, dealerships have already begun leveraging AI-driven chatbots to handle inquiries and manage service appointments. Sands highlights this trend, stating, "Dealerships started using AI-driven chatbots to field customer inquiries and to help coordinate service appointment calls."

Furthermore, dealerships are exploring generative AI, a variant designed to communicate like humans, to enhance customer service and engagement. Sands underlines the versatility of AI, stating, "The key thing about AI is how we can actually solve multiple problems at the same time."

By automating tasks such as appointment scheduling and call handling, AI empowers dealerships to focus on fostering positive customer relationships. Sands emphasizes the tangible benefits of AI integration, stating, "So far, AI in the dealership has improved customer service by reducing store workload."