AI Is Targeting Car Salespeople, and Honestly, It Completely Makes Sense

      A car dealer software firm is marketing AI-powered kiosks aimed at replacing car sales representatives on showroom floors. Automotive News reports that the industry is “skeptical.” But let’s be honest—would you genuinely prefer to interact with an average car lot salesperson over a computer?

      Epikar, a South Korean enterprise that develops digital management tools for car dealers, has unveiled its latest AI creation called the Pikar Genie. This device allows customers to engage in conversation, ask product-related questions, and essentially perform all tasks typically handled by a car salesman, except for finalizing the sale and completing paperwork.

      It’s akin to ordering nuggets from those enormous ATMs at McDonald's, though not exactly the same.

      Renault, BMW, and Volvo are already utilizing some of Epikar's solutions in South Korean dealerships, but this new AI product aimed at consumers is still in its early stages. According to Epikar CEO Bosuk Han, “Renault has three salespeople in its Seoul showroom equipped with Epikar automation, compared to six in other Renault showrooms in South Korea,” as reported by Automotive News.

      The company is now looking to branch out into the U.S. and is reportedly testing its products in at least one dealership in the country.

      Car-dealer consultant Fleming Ford, Director of Strategic Growth at NCM Associates, conveyed to Automotive News that U.S. dealerships “aren’t prepared for fully automated showrooms.”

      “The showroom is not just a place to purchase a car,” he remarked in an Automotive News article. “It’s where you determine whom to trust in selecting the right vehicle.”

      I must confess, I have only stepped into car dealerships as a buyer fewer than twelve times. However, I can't say “trustworthy” is the impression I’ve ever gained from salespeople motivated by commissions.

      In fact, every interaction I've had with a car salesperson felt far more like speaking with a chatbot than conversing with an actual person.

      I don't intend to criticize those working in car sales personally. I understand you're just trying to meet your quotas and go home like anyone else. Yet, based on my experience, active car salespeople seem to follow a script more than engage in genuine conversation, striving to push whatever has been on the lot the longest into your driveway.

      For instance, I recently assisted my grandfather in purchasing a new Nissan Frontier. He has been driving pickups since the 1960s and specifically wanted a low-spec, short-cab Frontier, likely his final truck.

      Accompanying him to a Nissan dealership, I communicated this preference. The salesperson cheerfully nodded and typed what seemed like a lengthy script on his computer, then printed a specification list and handed me an offer for a high-end four-door PRO-4X. We decided to leave.

      A few days later, we successfully obtained the desired model from a different dealership—I actually had to read out the inventory stock number from the store’s website to prompt the sales representative into action.

      So, while I can’t say I’m a huge supporter of AI, this is one job replacement I wouldn’t be particularly upset about. Nonetheless, who knows if Epikar will prove to be the driving force here—I currently can't get its website to load in any browser (not the best sign for a tech company).

      Car dealerships are notorious for resisting change, and transitioning car sales to AI may take significant time due to the various paperwork associated with car ownership (loans, insurance, titles, registration). However, once the technology is established, dealership owners will likely embrace robotic sales associates. A salesperson that never takes a smoke break, can immediately access the entire internet, and most importantly, never demands a commission? Those traits are set to be very appealing to managers, regardless of consumer sentiment.

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