💡 10 Takeaways from David Kain on Leveraging Tech and AI

As we close the books on 2024 and prepare to tackle the opportunities of 2025, it's essential to pause and reflect on the lessons learned over the past year. 

In a recent episode of Inside Automotive with Jim Fitzpatrick, our pal David Kain, senior advisor and auto industry expert at NCM Associates, provided some valuable insights into the state of the industry and what dealers should be watching for as we enter a new year.

1. AI Adoption Surged in 2024

And, Kain predicts it will play an even more significant role in 2025.

Dealerships leveraging AI for tasks such as summarizing inquiries, sending follow-ups, and providing status updates to customers saw measurable improvements in efficiency. Kain further encouraged dealerships to leverage AI: “Don’t fight it, don’t put it off—embrace it, because you need it to compete.”

Pro Tip: Combat resistance to AI by highlighting the benefits and showing off the results. Dealerships should emphasize AI’s role as an assistant to staff, not a replacement, and demonstrate its ability to improve productivity and sales. Involve employees in AI training and customization, allowing them to influence how the technology can be used to enhance their workflows.

2. Lead Management: When Speed Wins the Race

Getting to leads before they lose interest is everything. Kain pointed out that dealers who embraced AI tools in their CRMs saw a dramatic boost in lead engagement. AI now summarizes inquiries, gathers key data, and even drafts responses faster than a dealership’s most caffeinated BDC agent.

Pro Tip: Use AI-enabled CRMs to handle lead responses within minutes. Not only does this increase your odds of connecting, but it also frees up your team to do what they do best—build relationships. Let AI handle the boring bits; your team can dive in for the close.

3. Fighting Sticker Shock

One of the most pressing issues of 2024 was the skyrocketing cost of new vehicles. The average price of a new car hit $50,000, and monthly payments now average $725—nearly double what consumers were accustomed to paying a few years ago. Kain noted that consumers are increasingly turning to short-term leases to keep costs down.

Pro Tip: Offer AI-driven payment calculators on your website to help customers explore lease options before stepping foot in your showroom. Bonus points if your sales team can pitch EV leasing as a budget-friendly way to dip a toe into electric waters without the lifetime commitment.

4. BDC Follow-Up That Actually Follows Up

Kain highlighted how AI tools can provide dealers with a competitive edge by improving response times and personalizing customer interactions. "With AI, you can respond to a lead within a minute, boosting your chances of connecting with that customer by nearly 400%," he explained.

Ever heard a salesperson say, “I called once, sent a text, and emailed—what else can I do?” Yeah, that’s where AI comes in. Kain highlighted how dealerships using AI for automated follow-ups never miss a chance to reconnect with potential buyers.

Pro Tip: Set up AI-powered follow-up sequences. These bots don’t get tired, distracted, or hangry. They’ll keep pinging leads with timely, personalized messages until they either buy or file a restraining order (kidding…sort of).

5. Digital Retailing: The Choose-Your-Own-Adventure Approach

Kain is a big fan of letting customers shop how they want. Whether it’s online, in-store, or a little bit of both, dealerships that offer flexible purchase paths are seeing better gross profits and happier customers. Remember, it’s not about forcing buyers into your process—it’s about adapting to theirs.

Pro Tip: If you haven’t already, integrate a digital retailing platform ASAP. And don’t stop there—train your staff to seamlessly pick up where the online process leaves off. You don’t want to drop the ball after AI sets you up perfectly for the pass. 

6. Bye-Bye, Bloated Stock

Managing inventory in 2024 was a tightrope act, and Kain predicts it’ll remain tricky in 2025. The key? Use AI to forecast demand and move slow-selling stock before it becomes a museum exhibit.

Pro Tip: Utilize AI platforms to analyze demand patterns and suggest pricing tweaks to keep your lot looking fresh. Combine that with targeted promotions driven by AI insights, and you’ll have inventory that moves faster than a weekend clearance sale.

7. Personalization at Scale: AI as Your Wingman

Personalization isn’t just a buzzword—it’s what separates a great buying experience from a forgettable one. AI tools can help dealerships personalize emails, offers, and even in-person interactions by analyzing customer data and preferences.

Pro Tip: Try AI email marketing tools to create campaigns that actually resonate. For in-person personalization, equip your sales team with insights pulled from your CRM before they meet the customer.

8. The Amazon Disruption

With Amazon beta-testing a Hyundai sales platform, Kain warned that big changes are coming. While Amazon claims they don’t want to replace dealers, they will change the game for third-party platforms like Cars.com and AutoTrader.

Pro Tip: Stay ahead by strengthening your local brand presence. Focus on delivering an unbeatable customer experience—that’s something even Amazon can’t replicate. 

9. AI + Empathy = The Winning Combo

Despite all the AI talk, Kain reminded us that dealerships are still in the people business. AI can handle repetitive tasks, but it’s your team’s empathy and expertise that turn shoppers into loyal customers.

As David said, “Invest in your team, and they’ll invest in your customers.”.

Pro Tip: Invest in training programs that focus on both tech adoption and soft skills. Your team needs to know how to leverage AI without losing that human touch. After all, AI might be smart, but it can’t high-five a happy customer (yet).

10. Final Thoughts

AI and tech will continue to shape the dealership experience in 2025, but as Kain wisely pointed out, the key to success lies in balance. Dealers who embrace AI without losing sight of the human element will have a serious edge over the competition.

Echoing advice from his father, Kain encouraged dealers to focus on serving customers: “It’s not about always being closing; it’s about always being helpful.” 

Dealerships that prioritize helpfulness—through both technology and human interaction—will gain the lasting advantage in 2025.