Navigating the AI Revolution: Balancing Innovation with Human Touch in Automotive Retail

As we all get back up to speed after attending the recent NADA conference in Las Vegas, there are many exciting ideas rolling around my head. In automotive retail, technological advancements are reshaping the industry at a crazy pace.

Among these advancements, Artificial Intelligence (AI) stands out as a driving force with the potential to change how dealerships operate and engage with customers. However, as dealerships embrace AI solutions, it's important to strike a balance between innovation and the human touch.

Car enthusiasts and dealership leaders are known for their readiness to shift lanes as new things come up. This enthusiasm is understandable, considering the promise AI holds in improving processes, personalizing customer experiences, and driving operational efficiency.

What I worry about is the risk of overlooking the importance of people.

Despite the capabilities of AI, customers still want authentic interactions and personalized service. While AI can automate certain tasks and provide valuable insights, it cannot replace the empathy, understanding, and relationship-building that comes from human interaction.

General managers should aim to integrate AI into their operations thoughtfully, ensuring it enhances rather than detracts from their people-first approach.

Transparency is key here. Customers should be made aware when they're interacting with AI-driven systems and when they're engaging with real people. By setting clear expectations and fostering open communication, dealerships can build trust and credibility with their customers, strengthening relationships and enhancing the overall experience.

If you don’t set those expectations, you’ll see potential customers opting out of sales conversations quicker than you can assign a real sales associate to them. They simply don’t trust AI. And our business is all about trust.

Dealerships must also work hard to preserve their unique culture and values. At the core of every successful dealership are its people—their expertise, passion, and dedication. These qualities are what truly differentiate one dealership from another and drive customer satisfaction and loyalty.

So slow down, everybody. While AI presents exciting opportunities for innovation in automotive retail, we have to proceed with caution. By prioritizing the human touch, dealerships can leverage AI to enhance customer experiences and drive sustainable business growth.

Alan Brown is the people-first General Manager of Sam Pack's Five Star Chevrolet in Carrollton, TX. With nearly three decades of automotive retail leadership experience, Alan formerly served as the Chairman of the Volkswagen National Dealer Advisory Council , most notably during the Dieselgate scandal. He has been featured in numerous publications, including Automotive News, Auto Dealer Today, the Automotive State of the Union podcast, AARP, and more.