How AI and human ingenuity are steering the future of car dealerships

Car dealerships are no longer just showrooms, but data-driven command centres powered by intelligent software and human insight. CDK Global is leveraging a concept call Hybrid Intelligence that combines the speed of AI with the contextual intelligence of seasoned veterans of the industry. "AI by itself can’t read the room, but combined efforts can really change how dealerships think and serve," says Sandeep Kumar Jain, Managing Director of CDK Global.

In our discussion with Jain for Dataquest, he describes how CDK is reimagining the dealership experience, from predictive servicing to multi-lingual customer engagement, with India’s tech talent at the centre of global automotive innovation.

How do you view the automotive market evolving in terms of embracing technology for retail operations?

Dealerships face an important crossroad of evolution in the automotive market with updated technologies like Hybrid Intelligence. In the past, dealerships have relied solely on artificial intelligence while positioning traditional human expertise as a separate approach to modernize their dealership. The future of any organization's future success is achieved by a combined or composite approach integrating machine learning with human intelligence and reasoning.

Through Hybrid Intelligence, CDK's solutions provide our strategy employing decades of professional experience and expertise infused with state-of-the-art technology. AI is superior at processing enormous amounts of raw data; it is often limited by its constraints of data processing instead of relying on creativity and real-world experience of humans.

By thinking collaboratively, CDK's solutions help dealerships address complex issues to improve efficiency and customer experience. With the evolution of technology, there is an accelerating pivot toward a more knowledge- and data-driven, customer-centric workflows where technology evolves beyond streamlining existing workflows, and enables companies to enhance the customer experience by removing friction and making it more intuitive and personalized.

What factors make India a strong contender for becoming a global hub for IT services in the automotive sector?

India is strategically positioned to be a global leader in providing IT services for the automotive sector, thanks to its combination of a highly skilled workforce, cost efficiency, and the ability to scale quickly. With a massive pool of talent specializing in AI, machine learning, and data analytics, India has already become an essential partner for global companies looking to enhance their operations. The country’s focus on driving digital transformation in various industries, including automotive, creates ample opportunity for Indian IT professionals to innovate in areas like predictive analytics, customer experience, and machine learning.

Moreover, India’s growing role in the smart mobility space and electric vehicle development provides even more avenues for leveraging advanced technologies. Given these strengths, Indian IT services are set to be at the forefront of shaping the future of automotive technology, particularly in customer-centric solutions.

Can you share specific examples of how these technologies are being applied in CDK Global’s solutions to improve dealership operations and customer engagement?

CDK is leveraging Hybrid Intelligence in several impactful ways to enhance dealership operations and customer engagement. For example, CDK AI Virtual Assistant (AIVA) provides dealerships with real-time, personalized communication tools, enabling them to respond to customers promptly and efficiently. This includes conversational text and email responses, appointment scheduling, and even answering customer inquiries about things like monthly expenses, all in over 50 languages. Dealers are also increasingly utilizing the CDK Intelligence Suite within the highly successful Dealership experience Platform.

This AI-powered analytics solution optimizes business performance by enabling smarter, more profitable decisions across service, sales and finance operations. The CDK Intelligence Suite delivers advanced, enterprise-wide analytics through detailed and configurable reports with competitive benchmarks, goal management and AI-driven predictive forecasting. Another area where technology is making a real impact is in Predictive Service and Customer Engagement. CDK’s machine learning capabilities allow dealerships to anticipate potential repair needs based on data insights about the vehicle’s make, model, and mileage, making the service department more proactive and efficient. Additionally, Equity Mining within the CRM helps identify high-potential customers who are likely to purchase, enabling dealerships to increase sales leads and improve trade-in offers. These AI-driven features streamline workflows, reduce overhead costs, and ultimately elevate the customer experience.

What opportunities exist for Indian IT talent to drive innovation in areas like customer experience through advanced software solutions?

Indian IT professionals are well-positioned to innovate in areas that significantly enhance customer experience, particularly within the automotive sector. By combining their expertise in AI and machine learning with an understanding of consumer behavior, Indian talent can help develop solutions that offer deeply personalized and seamless experiences.

For example, AI-powered platforms that provide tailored recommendations based on a customer’s past interactions or predictive models that anticipate a consumer's next purchase can dramatically improve customer engagement. Moreover, as the demand for omnichannel experiences grows, Indian IT talent has the opportunity to develop integrated solutions that work across multiple touchpoints—whether it's through virtual showrooms, chatbots, or mobile apps. As automotive companies continue to focus on creating smarter, more intuitive customer journeys, Indian developers will play a key role in shaping these digital transformations.

How do dealerships leverage technology to create a globally competitive and customer-focused retail ecosystem?

Dealerships are increasingly leveraging technology to create a more competitive and customer-centric retail environment. One example is the recently introduced CDK Vehicle Inventory Suite—a single, integrated system that streamlines the purchasing and selling of vehicles through real-time appraisals, inventory management, pricing, and merchandising, while using AI to unlock additional dealer profitability. To stay ahead, dealerships are turning to AI-driven inventory management and predictive analytics to optimize stock levels, accelerate vehicle merchandising, and enhance vehicle presentations. These capabilities help create a faster, smoother buying experience for customers.

Additionally, predictive customer engagement tools enable dealerships to identify when customers are most likely to make a purchase, allowing for more targeted marketing and effective lead generation. Technologies like real-time sentiment analysis allow dealerships to gauge customer satisfaction in the moment, while smart replies help automate common inquiries, freeing up staff to focus on higher-value tasks. By integrating these technologies into their day-to-day operations, dealerships are not only increasing operational efficiency but also delivering a more personalized, customer-first experience that drives customer loyalty and long-term success.