The majority of dealers in the US are uncertain about using AI in their business. That’s the finding of a Lotlinx which found that 78% of US car dealerships are uncertain about using predictive data, with only 5% implementing AI. Despite challenges, 80% plan to adopt AI by 2025.
The survey, which involved over 2,500 dealers and was carried out last month, highlighted the challenges the motor retail industry sector in harnessing these advanced technologies that could potentially enhance operational efficiency and profitability.
It found that just 21% of dealerships are employing AI for customer relationship management and lead scoring.
Len Short, executive chairman of Lotlinx, said: “These survey results reveal a stark reality, as many dealers are struggling to leverage predictive analytics effectively.”
Issues surrounding data quality or accuracy were cited by 21% of respondents as a major barrier, while 19% pointed to integration challenges with existing systems.
Additionally, staff training and adoption were reported by 18% of the dealers as significant hurdles.
Interestingly, many dealers continue to rely on traditional methods for decision-making. When asked how they make decisions in the absence of predictive analytics, the predominant responses were based on the dealership’s historical trends and instinct, both of which accounted for 29% of the responses.
Despite the current shortcomings, there appears to be a growing interest in integrating advanced technology within dealership operations. Approximately 80% of the surveyed dealers indicated plans to invest in and implement AI by 2025, while 11% of those already utilising AI expressed intentions to expand its application.
Additionally, 61% of respondents reported being very or somewhat likely to invest in predictive data technology within the next 12 months.
Source: Noah Wire Services
