Are you AI-ready?: Building the Right Data Foundation

The odds are against you if your answer is "yes," and studies back up this reality.

According to MIT Technology Review & TDWI, 80% of organizations believe they're AI-ready, only 12% actually have the data infrastructure to support AI initiatives.

While we all hear how generative AI tools are “transforming” automotive retail, long-term value demands more than just implementing the latest chatbot or prediction engine. The critical foundation—often overlooked in the rush to adopt AI—lies in consistently unified, clean, and well-governed data.

According to Gartner, 87% of AI projects fail at the proof-of-concept stage primarily due to poor data quality and management. Auto dealers face particular challenges, including fragmented systems (DMS, CRM, inventory management), inconsistent data formats, and siloed customer information across departments. Organizations with unified data architectures see 63% higher ROI from AI investments compared to those using disconnected solutions.

Let me be clear: AI isn't simply deploying new technologies – it's about fundamentally reshaping your organization's approach to data collection, analysis, and utilization. If your data infrastructure and governance aren't robust, consistent, and continuous, even the most sophisticated AI systems will simply be costly tools processing flawed information.

Creating this foundation requires a systematic approach:

1. Data Review & Analysis

• Check all department data sources and systems 

• Review data accuracy and completeness 

• Document how different systems connect 

• Create data flow diagrams and rules

2. Building the Data Foundation

• Set up a central data storage system that can grow 

• Enable systems to share data in real-time 

• Add special databases for AI tools 

• Create consistent data formats across teams

3. Data Management Rules

• Set up automatic data checking and cleaning 

• Monitor data quality continuously 

• Define who can access and control what data 

• Keep records of all data activities

4. AI System Setup

• Connect AI systems to dealership knowledge 

• Create systems to handle different types of information (text, images, voice) 

• Set up AI memory to remember customer conversations 

• Develop ways to improve AI performance over time

Key Performance Gains Through Data Unification

The results are compelling: dealerships with unified data foundations report 47% higher customer lifetime value, 38% improved inventory turn rates, and 42% better service department utilization. More importantly, they're positioned to leverage advanced AI capabilities that can autonomously optimize pricing, predict service needs, and personalize customer experiences at scale.

The Hard Truth About AI Readiness

So, are you AI-ready? I’m going to go out on a limb here and say, most likely, NO. Now is the time to act, and that requires shifting from fragmented, tool-based approaches to a comprehensive data strategy ensuring consistency, accuracy, and accessibility across all operations. While generative AI offers immediate tactical benefits, true competitive advantage will only come from building the data foundation necessary for sophisticated AI applications that can transform your operational efficiencies and the entire customer journey.

Troy Scheer
VP of Auto-Mobility, BrainTrust Partners