Kevin Pitts, BMW’s Redding GM, talks about how he built a unique AI-powered tool to transform dealerships and how other companies can do the same.
More car dealerships are turning to artificial intelligence to streamline operations and customer service, but the options can seem overwhelming. Some dealers are now building the necessary AI tools themselves instead of using a vendor.
This episode of Inside Automotive features Kevin Pitts, general manager of BMW in Reading, Pennsylvania. He takes a hands-on approach to AI for his dealers, building his own AI tools in-house.
DIY AI approach
Cost is the main reason Pitts decided to build his own AI tool. Pitts said the auto industry already suffers from “vendor bloat,” with vendors willing to sell services for every aspect of the business. Rather than hire another outside vendor, Pitts decided to take on the job himself, with a little help from like-minded dealer friends.
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Pitts’ background was in operations, not coding. But that didn’t stop him.
“Being able to create workflows and create agents that do whatever you want them to do has become really interesting and fun,” Pitts says. “In fact, you don’t need to have a lot of coding experience.”
AI makes social media more efficient
One of the first things Pitts wanted AI to do was help with his social media content. Pitts said the previous process involved sending someone out to the venue to take photos, then taking the time to write copy and finally posting. Using AI, Pitts automated that entire workflow. Now, images captured during recalibration are input directly into an AI-powered system that captures inventory data and automatically posts to Facebook, Instagram, and other social media sites.
“We’ve been implementing[AI]into internal processes, marketing efforts, and anything else that we think would benefit from enhanced workflows.”
Each morning, the AI agent also searches the internet for retailer- and industry-specific articles and sends them via email to Pitts. From there, you can reply with simple instructions and wait for your completed blog post in a few minutes.
Pitts also uses vendor-provided AI receptionists to help route incoming calls, but the BDC still has live humans. Pitts said previous attempts at all-AI phone systems have met with customer backlash.
Treat AI as a tool, not a threat
Pitts said he expected some pushback from his team, but for the most part, that didn’t happen. He believes it’s because of the way he has assembled AI tools for his staff. Pitts said they have made it clear that AI is not a threat to their jobs, but rather a tool to help them with tedious tasks and keep them focused on their customers.
“Listen, we’re not trying to eliminate jobs. We’re just trying to create efficiencies in the workflow,” Pitts said. “Instead of sitting behind a desk doing something you don’t want to do, you get to go out and be in front of your customers and face them.”
Pitts acknowledges that AI may eventually eliminate some management positions across the industry, but he distinguishes between large companies and businesses like his, which has about 200 employees across four stores.
“There will be some administrator jobs that we think could be eliminated by that,” Pitts said. “But there’s always more to do…My argument is there’s enough work for everyone,” Pitts said.
Responding to AI-educated customers
The shift to AI isn’t just happening within dealerships, Pitts says, but with customers as well.
Pitts said some consumers come to the showroom with research that goes far beyond a Google search. In some cases, customers have taken photos of buyers’ orders on the spot and asked AI agents if it’s a good deal, what they need, and what’s negotiable.
Pitts said that in the wake of the recent FTC ruling cracking down on deceptive pricing at dealerships, it’s even more important to be fully transparent with customers, who can quickly and easily review the details of their transactions using AI tools.
Pitts says he has trained his salespeople to ask customers early in the process what AI tools they use in their research, so they can tailor the conversation to the situation the customer is already in.
Stay relevant in your responses
Pitts is using AI and other tools to find customers, as more customers are using AI in the car-buying process.
When customers use tools like Perplexity, ChatGPT, and Gemini to research where to buy or service a car, Pitts strives to make sure his dealership appears in the AI-generated responses. He says it’s as important as ranking on Google. The challenge, he says, is keeping up with technology.
“That’s probably the most difficult part right now, because the rules are not really defined because they keep growing and change with every new version,” Pitts said.
Pitts says his team uses Semrush, an all-in-one digital marketing platform, to increase brand awareness across multiple platforms.
Start slow and simple
For dealers looking to leverage AI, Pitts says they should start small and start now.
“Start with a small process that you think could be done with AI, then find an AI tool. Find any. There are many out there,” Pitts said.
From there, Pitts says he just starts asking the AI agent questions. He says the learning curve isn’t as steep as most dealers assume.
“Educate yourself a little bit. There’s all kinds of free training out there. Jump on the free training, learn a little bit, and just give it a try,” Pitts said. “Nothing can hurt you.”
