Dealer Ends Relationship with AI Assistant "Kyle"
In the ever-evolving world of automotive sales, artificial intelligence (AI) is making its mark, with some dealerships hailing it as a game-changer, while others are reverting back to human interaction. This is evident in the case of Nathan Shaver, general manager and dealer principal at Shaver Chrysler Dodge Jeep Ram in Thousand Oaks, CA, who recently tried using AI appointment-setting software by startup Hiremyai.
However, after four months of using Hiremyai, Shaver's dealership stopped using the software, which was costing $2,000 a month. The reason? Kyle, Hiremyai's AI-powered assistant, did not perform as well as expected, leading to customer complaints about Kyle hanging up on them, not following up, and failing to integrate with the dealership's Customer Resource Management system.
This experience echoes the words of Skyler Chadwick, director of product consulting at Cox Automotive, who advises dealerships to be cautious when selecting an AI-based service appointment provider. Chadwick's warning is supported by the CDK Service Shopper 4.0 study, which found that nearly four in ten customers experience "serious" issues with booking service over the phone with a real human.
Despite these challenges, AI service department technology is overall improving, according to Chadwick. He points out that AI is learning quickly, and as it improves, it will give dealerships the ability to focus on the customer experience. This is particularly important, as being put on hold is the biggest friction point for customers, and 31% of respondents in a recent study prefer to book with an AI agent rather than be put on hold.
Moreover, AI-based customer service systems are expected to improve over time, providing dealerships with the potential to handle seasonal or high call volumes efficiently. AI voice assistants can automate conversations, scale 24/7 without extra staff, and maintain human-like interaction quality, as demonstrated by Callease AI, which is noted for handling thousands of calls, integrating with CRM and calendar systems, and improving appointment booking during busy periods.
However, for AI-based appointment systems like Hiremyai to be truly effective, integration with CRM systems is critical for seamless workflows and personalized, timely customer engagement. Proactive engagement features and the quality of natural language interaction are also crucial for a smooth technical integration.
Interestingly, the customer base might affect the acceptance of AI-based assistance. Chadwick suggests that Porsche or Audi customers might adapt to using AI faster than Toyota customers.
In light of these findings, the success of AI-based appointment systems in dealerships depends heavily on the quality of their implementation. While Hiremyai, the AI appointment-setting software used by Shaver, seems to have gone out of business, the broader market suggests that such AI solutions can markedly improve call handling and CRM integration when well implemented. Shaver, who plans to try AI again in six months, will no doubt be keeping this in mind.
In the realm of customer service, AI-based systems are improving, offering dealerships like Shaver's the potential to handle high call volumes effectively with human-like interaction quality. However, for AI solutions to deliver positive results, integration with CRM systems is vital to ensure seamless workflows and personalized, timely customer engagement. The quality of natural language interaction and proactive engagement features also play significant roles in the seamless integration of such systems.
