Many consumers today don’t want to talk much to other people when shopping.
Once utilities accept that reality, they can put AI to work to get the most out of it, said Ethan Gustav, group president for North America at Infobip, an information technology and telecommunications company in Croatia.
“There will be some element of [human interaction]but a lot of this can be automated, faster [and] can have higher conversion” through AI, Gustav said. “Data collected over time can be used to refine these processes and deliver better experiences.”
With that in mind, utilities should give up the idea that they can prevent the spread of AI, Gustav said.
“If the marks “If you choose not to provide that way to interact, consumers will likely find other brands to fall in love with,” Gustav said.
Infobip employs about 3,400 people globally, 300 of whom are in the U.S. Customers include Meta, Uber, Microsoft and Apple; automakers Toyota and Nissan; and dealership software company Dealer-FX. Infobip unveiled an updated consumer platform in December for businesses that relies in part on advanced analytics and generative AI, a variation of the technology that learns from its mistakes and can communicate like people.
Gustav spoke to staff reporter Mark Holler in June, where Gustav discussed the huge potential that AI can bring to dealerships and the ways in which they can use it as part of their retail technology setup for maximum gain. Here are edited excerpts.
On why AI is a game-changer for dealerships:
AI is powering a lot of digital sales and advertising technologies that are creating more awareness and bringing new consumers into dealerships, so this is kind of on the front end. Once those consumers come in and experience a dealership’s online website, AI is creating a digital assistant, or replacing a human, in the early part of the discovery process for a consumer looking to buy a new vehicle. These AI chatbots can interact with a consumer who comes to a website filling out a form. They can help them fill out that form more quickly and also help direct them in the direction of areas that they might be interested in. AI chatbots can also help in the early entry of the financial process, where they’re gathering characteristics and information about a potential buyer.
One way AI can cause a revolution:
Some of the results we’ve seen with companies like Nissan — their Middle East division reported a 71% increase in unique users, generated through chatbots that we powered through WhatsApp.
On when this level of experimentation will hit the U.S. dealership market:
These technologies have actually achieved greater penetration faster in these other areas. They will reach the US
On how dealerships can adopt ChatGPT even though it has caused problems:
ChatGPT is amazing. It’s a lot of things, but It is not intended to power a car buying experience or car buying experience through a dealership. It is just an underlying technology and dealers need to work with a trusted party that knows how to take ChatGPT and feed it into a chatbot that can then be managed across different channels with the appropriate amount of controls and compliance. At the same time, there needs to be some education for consumers so that they know how to request and interact with these chatbots and that is something that we help.
On whether there is an ideal form of conventional AI or generative AI:
It’s bringing the right technology to the right process, powered by the right intermediary, that can help educate brands and dealers on what the limitations are and what the capabilities are, while also ensuring that they’re protecting and delivering a more valuable customer experience than they may have had traditionally. If the thinking is that you’re just going to hand your process over to AI and it’s going to magically do it all, that’s not what AI does. You need someone who understands the technologies and how to deliver the experience.
On why dealerships should hire an information technology person to maximize the benefits of AI:
Dealerships should have an IT person who understands AI, how to bring it into their business, or what [dealerships] don’t understand so they can figure out how to work with the right intermediary to help bring technology to their business.
On the benefits of starting slow with AI:
You don’t want to sell a Chevy Tahoe for $1, obviously, so that would be the risk of doing it wrong. I think the biggest risk is doing nothing because AI is not going to be a flash in the pan technology that goes away. They need to start bringing AI into their traditional business flows for increased reach, increased efficiency, increased conversion, all of these things that we’ve seen. But it will also reduce costs. Dealers need to get comfortable with the technology and develop a competency, and if you’re starting slow, then start slow. Pick a process that you can start infusing AI into. By sitting on the sidelines and doing nothing, I think those dealerships are going to get left behind.
On what is gained and lost with AI:
Well, what you gain is cost-speed advantages, the ability to build a data set that can be used to provide better recommendations about how to engage with consumers at the right time. There will be tremendous efficiencies and better reach. What will be lost is that kind of human touch. It will be a mix, but each will be used at the right time and for the right process.
On whether dealerships can achieve a personal experience using AI:
They can, absolutely, but I would see it as using AI at the right points in the customer journey. That’s where AI will really help. If you have a buyer who wants to come in and see a car and work with a human, AI will speed up that process and get them to the dealership.