I was having lunch a couple of weeks ago with the head of a dealer group whose company I very much enjoy, and whose views I very much respect. We have lunches like this every so often, just to trade notes on what’s going on, and what things are top of mind.
One of the topics we touched on was AI. Specifically, I was asked what dealers should be thinking and doing about AI. Given the flurry of developments and the hype around much of the coverage, no-one wants to risk being left behind.
He seemed to find my thoughts helpful, so I thought I’d share them again here. Consider it part of your AI considerations, not the be-alland-end-all by any stretch of the imagination.
First steps?
Talk to your current providers.
Your DMS software, CRM software vendors, etc. Most are working to understand how best to incorporate AI functionality into their products. You should have a sense of what they are working on and how that might benefit your business. Most importantly, it will help you understand how AI-enhanced tools can benefit your business without adding to what is already a too-complicated tech stack.
I’ve written many times about the challenge of knitting all the different software tools in place across a dealership into one cohesive whole. You live with it every day. When you consider multi-brand groups the situation gets more complex very quickly, particularly as OEMs are going to be imposing more uniformity in pursuit of improved customer experience across all platforms (the vehicle itself included).
Adding a bunch of new tools based on a claimed AI breakthrough is only going to make that integration challenge worse. You may also find that many of the best of the startups will get acquired and woven into the industry’s leading players.
Consider our world, where new AI-powered content creation is changing the way agencies create things. While there are absolutely some exciting new startups, the most powerful and useful enhancements will likely come from industry powerhouses like Adobe. And we’ll get the benefit from tools we already use every day.
At the same time, we are using some brand new tools (ChatGPT to assist in early script treatments, voice automation tools to replace human talent in certain video projects, image generators to speed storyboard development) that are coming from sources that weren’t part of our world even a few months ago.
You likely already have waves of new players knocking on your door. By all means, hear what they have to say. Dealers have always been driven by innovation and that is part of it. But then compare what hear to what your existing providers are saying. Above all, understand how things will integrate into your current tech stack.
Talk to your OEMs: Obvious, right? They are certainly trying to understand how best to incorporate AI enhancements into their own tech stacks, and that is an extension of yours.
Keep reading and listening: You’ll find there is no shortage of updates, news and opinions in all the media you would expect, including the automotive press, mainstream media and of course the tech media. Keep an eye out, and don’t worry about missing the next “big thing”. Whatever it is, there will be plenty of coverage — including in this issue of Canadian auto dealer.
Let’s grab lunch: I’m always eager to meet and share ideas and compare notes from our travels. Interested? Let me know and we’ll make it work.
