Integrating AI in Dealerships: Current Trends and Future Opportunities
The use of generative AI is on the rise in the automotive industry, yet many dealerships are only beginning to explore its vast capabilities. In today’s episode of Driving Solutions, we welcome Kerri Wise, Chief Marketing Officer at Lotlinx, and Lance Schafer, GM of Product and Technology at Lotlinx, to discuss this evolving landscape.
A recent survey by Lotlinx revealed that around 80% of dealers utilize generative AI tools weekly, as confirmed by Wise. Despite this remarkable uptake, the majority of applications remain limited to sales and marketing, indicating substantial opportunities still exist for broader implementation across dealership operations.
“We found that 84% of dealers reported experiencing failures in terms of outcomes from generic AI tools.” – Kerri Wise
Both Wise and Schafer highlighted that the true effectiveness of AI relies on its integration with dealership data. By linking AI tools to platforms such as CRM systems, inventory management, sales metrics, and analytics, dealerships can gain contextual insights while minimizing the inefficiencies often associated with manual data entry. Fully connected systems enable AI to analyze multiple data streams simultaneously, enhancing decision-making and operational transparency.
Nevertheless, the reliance on general-purpose AI tools continues to be problematic. The survey indicated that 84% of dealers often receive ineffective or impractical outputs, as expressed by Wise. Common challenges include generic responses, insufficient dealership-specific context, and the inability to address operational inquiries related to inventory performance or vehicle-level strategies.
“In the early stages of dealership AI adoption, we’re observing initial transformations, such as writing website descriptions or improving images for better online presence.” – Lance Schafer
These limitations are creating a demand for more specialized AI tools tailored to the automotive sector. Dealers are increasingly interested in solutions that can diagnose inventory issues, pinpoint underperforming vehicles, and suggest actionable strategies to enhance sales outcomes.
Lotlinx’s platform, LotGPT, currently caters to around 6,000 dealership users. Initial trends show that dealers start by exploring competitive positioning and market comparisons before advancing to more detailed operational analysis, focusing on inventory management, merchandising improvements, and VIN-level insights to uncover reasons for unsold vehicles.
The technology is also progressing from analysis to execution. New applications are emerging, including automated content creation, image enhancement, and data-driven merchandising modifications. These advancements signify a shift towards systems capable of interpreting data and taking action based on that information.
Looking ahead, Wise and Schafer predict that AI will evolve from a support tool to a more autonomous presence within dealership operations. In the near term, adoption will likely rely on hybrid models, where AI offers recommendations or performs tasks that require managerial approval. Over the long haul, AI systems are anticipated to manage functions independently—from pricing adjustments to operational workflows.
As dealerships continue to adopt and refine their AI strategies, the focus is shifting from mere experimentation to achieving tangible business results. The next phase aims to leverage AI to generate actionable insights, improve operational efficiency, and enhance overall dealership performance.
