Automotive Dealers Look to AI for Business Growth
December 09 2021 - 8:30AM
Business Wire
CDK Global research reveals excitement
around data and intelligence use in automotive retail
With an increasing amount of data created by automotive
dealerships, manufacturers and vehicles, approximately 68% of
dealerships believe adoption of artificial intelligence (AI) has
had a positive impact on their businesses, according to a study by
CDK Global, Inc. (Nasdaq: CDK), a leading automotive retail
technology company.
“Today’s world is undoubtedly data driven, and every transaction
that happens between the dealers, manufacturers and consumers is an
essential data source that can be used to build more simple and
convenient buying and ownership experiences,” said Mahesh Shah,
chief product and technology officer, CDK Global. “For this to
happen, we must come together as an industry to exchange data in a
fast, reliable and secure way through platforms that are built on
modern, cloud-based architectures. The results of our research are
encouraging and tell us dealers are excited about the possibilities
of AI and how it will help them meet their financial and customer
satisfaction goals.”
AI technologies provide significant and measurable benefits
across other industries. In a survey by McKinsey & Company1,
63% of respondents reported revenue increases due to the use of AI
applications with average gains of around 10%. Within automotive
retail, AI can be used to solve some of today’s biggest dealer
challenges, which include addressing employee and skills shortages
by replacing resource-intensive tasks and augmenting employee
skills; attracting customers by looking at existing sales and
service profiles and determining their propensity to buy; and
retaining existing service customers through proactive and
personalized service and by better predicting potential vehicle
issues.
CDK’s Artificial Intelligence in Automotive Retail Report
highlights the use of AI tools in automotive retail today and the
optimism for the benefits it will provide dealerships in the
future:
- Dealers are familiar with artificial intelligence (75%), with
40% feeling extremely or very familiar with the topic.
- Dealerships are already using AI or plan to do so within the
next three to five years (68%).
- Dealers who don’t use AI today, but plan to in the future,
anticipate positive outcomes (56%).
- Only 2% of the respondents said that they didn’t see their
dealership using AI-based applications in the future.
As in other industries, automotive retail is investing in AI and
is already seeing the benefits. Whether a dealership is currently
using AI or plan to, nearly all the respondents believe AI will be
an integral part of dealership operations.
About the CDK Global Artificial Intelligence in Automotive
Retail Report
The CDK Global Artificial Intelligence in Automotive Retail
Report was conducted in October 2021 among a national sample of 243
dealership department heads and executives. The interviews were
conducted online by CDK Research & Insights across a
representative mix of roles, location, departments and sales
volume. To view the full report, click here.
About CDK Global, Inc.
With approximately $2 billion in revenues, CDK Global (NASDAQ:
CDK) is a leading provider of retail technology and software as a
service (SaaS) solutions that help dealers and auto manufacturers
run their businesses more efficiently, drive improved profitability
and create frictionless purchasing and ownership experiences for
consumers. Today, CDK serves nearly 15,000 retail locations in
North America. For more information, visit cdkglobal.com.
1 McKinsey & Company, Global AI Survey: AI proves its worth,
but few scale impact
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211209005283/en/
Media Contacts: Tony Macrito 630.805.0782
Tony.Macrito@cdk.com Investor Relations Contact: Reuben
Gallegos 847.485.4012 Reuben.Gallegos@cdk.com
CDK Global (NASDAQ:CDK)
Historical Stock Chart
From Jun 2024 to Jul 2024
CDK Global (NASDAQ:CDK)
Historical Stock Chart
From Jul 2023 to Jul 2024