The Do’s & Don’ts of AI for Dealerships

Artificial intelligence (AI) is a ubiquitous and highly relevant topic in the technology, retail and RV industries. AI offers innovative digital solutions and enhanced marketing strategies, aiming to change dealership operations. However, not all AI meets expectations, and jumping in without a plan can be costly. AI is not magic — it is a powerful tool and its effectiveness depends on how it is used and the quality of the data it receives.

These days, our summer camper stays parked at its full-time site. It’s our home base for family time, cookouts and quiet mornings with coffee. But as we look ahead, the hubs and I are thinking about adding something new — we’re dreaming of a second camper. Something smaller and just right for the two of us to tow behind the truck with the motorcycles in tow, built for those long, winding country rides we love.

Of course, it still needs to have enough space to bring our two granddaughters along when the opportunity comes up. Think of it as a hybrid between a weekend adventure rig and a memory-making mobile.

Now, imagine an AI tool that could guide families like ours straight to the perfect unit, one with a toy hauler for the bikes, cozy sleeping space for the girls and a kitchen that can handle a post-ride feast. That’s the kind of smart, intuitive experience AI can bring to your dealership. It’s not just about features; it’s about fitting real lives and real adventures.

With the right knowledge, AI can be harnessed to tackle real-world challenges without falling prey to the surrounding hype. To help you make AI a practical and impactful tool for your dealership, here are some key do’s and don’ts to follow.

DO: Work Smarter, Not Harder With AI

Consider your daily tasks that are major time wasters. AI excels at handling these. Need a quick answer to a customer’s question? An AI-powered platform can answer inquiries like “Are there any lightweight toy haulers that can carry one or two motorcycles and still offer a full kitchen?” in seconds, allowing your team to focus on building relationships with buyers. Customers prefer accurate answers quickly.

AI also excels in inventory management by analyzing purchase trends, adjusting pricing strategies, predicting seasonal demand and prioritizing units on your lot. Prevent inventory from sitting idle for months by making smarter ordering decisions early. Harnessing AI can mean spending less time on routine tasks and more time growing your dealership’s success.

Tip for Success: Integrate AI platforms that focus on your needs and challenges, whether that’s improving lead management or inventory turnover. Start small and evaluate the results before broadening implementation.

DON’T: Assume AI Replaces Human Touch

It’s a common misconception that AI equals fewer hires. Don’t fall for it. AI isn’t a substitute for expertise or human connection; it complements and enhances your team. Think of it this way: AI can give your staff important info and data, allowing the team to focus on delivering exceptional in-store customer service and building strong relationships, and even reducing the sales cycle.

When sales reps can see what you’ve been searching for — small toy haulers, lightweight towables, dual-purpose rigs for grandkids — they can walk into the conversation already understanding your lifestyle shift.

Instead of asking, “What are you looking for?” they might say: “I saw you were looking at units that can handle motorcycles and accommodate a couple of grandkids. I’ve got a few that would fit both.”

Your team’s expertise and personal touch are still the backbone of trust and conversion.

How To Avoid This: Use AI to help your team work smarter. It can analyze customer behavior to determine which leads are worth calling and the optimal time to reach out. They send timely nudges, such as personalized follow-ups or reminders about units of interest, keeping leads engaged until your sales team finalizes the deal. When you pair AI’s insights with your team’s personal touch, the whole sales process feels smoother and more natural.

DO: Verify, Verify, Verify

AI tools are only as good as their data. Trust but verify. If AI suggests towing capacities or specs and they’re wrong, it’s more than frustrating — it’s unsafe. Accuracy matters. Always double-check AI output before sharing it with customers or making business decisions. Rely on your team’s expertise to ensure AI enhances reliability, not undermines it.

How To Do This: Start with clean, accurate data. AI relies on the information provided, so ensure that details from manufacturers or your vehicle’s pages are up to date. Establish a process for regular reviews and updates of this data, and cross-check AI insights before acting. With solid data, AI is a powerful tool rather than a liability.

DON’T: Buy Into the Hype Without a Plan

Jumping into AI without a clear vision? That’s a fast way to waste your budget. It’s tempting to get sold on sleek demos or overhyped claims, but many flashy AI systems lack real-world applications. Worse, some dealerships spend significant budgets on tools they barely use or don’t fully understand.

Before investing, identify the problem you want to solve. High turnover of unsold inventory? Missed customer follow-ups? Long time-to-lead response? Low employee productivity? Focus only on AI solutions specifically designed to address those challenges. This clarity can prevent costly missteps and align technology investments with your dealership’s broader objectives.

Actionable Step: Take a moment to identify your dealership’s challenges and name your goals, and then evaluate AI systems based on how specifically they align with your priorities. Don’t just ask what the tool does; ask how it will directly benefit your dealership’s day-to-day activities.

DO: Prioritize Customer Experience

For today’s buyers, especially those of us juggling packed workweeks and tight weekend windows, speed, convenience and relevance are everything. AI tools can dramatically improve that experience by cutting through the clutter and helping us find exactly what we’re looking for before we ever step onto the lot.

Imagine a smart search tool that filters not just by size or weight, but also understands real lifestyle needs, such as a lightweight toy hauler that carries two motorcycles, has sleeping space for a couple of grandkids and includes a kitchen spacious enough for cooking after a long ride.

For buyers like me who want to do our homework online before ever setting foot inside, this kind of tailored experience turns research into momentum and makes us excited to actually visit.

Beyond search, AI can personalize follow-ups and offers based on browsing behavior or previous inquiries. If I were once looking at toy haulers but hesitated due to seasonal pricing, an intelligent system could follow up automatically when promotions or inventory shift in my favor. It’s about meeting buyers where they are with timing, relevance and value, not generic sales tactics.

That’s the kind of intelligent efficiency that builds trust and drives repeat business.

DON’T Skimp on Transparency

Here’s a golden rule for AI in any customer-facing application: Don’t trick people into thinking they’re talking to someone if they’re not. Customers don’t mind dealing with AI, as long as you’re upfront about it. Transparency is crucial to maintaining trust.

If you’re using AI for chat support or generating automated responses, make it clear that it’s a bot. But also give customers the choice to connect with a human at any point. Offering that balance between AI efficiency and genuine human interaction preserves the personal touch that sets dealerships apart from faceless online retailers.

Trust Tip: Directly communicate with customers during the transition from automated to human service, establishing clear boundaries to indicate when AI support ends and a human takes over.

DO: Build for Long-Term ROI

No one adopts AI for short-term thrills. Its power is in how it reshapes your dealership’s growth potential over time. Aside from quick wins, such as responding to leads faster or making day-to-day tasks easier, AI excels at identifying deep-rooted patterns and streamlining processes on a larger scale.

Consider utilizing long-term data to forecast demand surges for specific unit models or to gain a deeper understanding of seasonal marketing trends. These strategic insights help your dealership make choices that bring measurable ROI over months or years, not just weeks.

DON’T: Lose Sight of What Makes Your Dealership Unique

Above all, remember that people aren’t buying an algorithm. Shoppers are buying the confidence that your dealership understands their dreams, needs and challenges and where they want to go next. AI works best when it frees your team to deliver those human experiences fully, not when it overshadows them.

Sure, AI can recommend the perfect RV, but it’s your team that knows when to say, “This one’s great if you’re planning to take the grandkids to Yellowstone.” Or “This one’s great if you’re planning to tow your Harley for those weekend rides.” Those personal touches are what make your dealership stand out.

Keep personal relationships at the center, reinforcing them with tools that enhance your team’s efficiency and accuracy, while maintaining the focus on the personal service that makes your dealership relatable and trustworthy.

Pro Tip: Let AI handle the repetitive tasks — such as follow-ups or scheduling appointments — so your team can focus on building genuine connections and understanding your customers’ needs.

A Final Word

AI holds incredible potential for dealerships that use it with care and strategy. But staying smart with AI is all about keeping perspective.

It’s not about replacing your team or throwing cash at the next trend. It’s about using AI to refine the strengths you already have. Build your approach around the idea of AI plus people.

Done right, it’s not just a tool for saving time or cutting costs; it’s a powerful asset that can drive growth and profitability. It’s a partner helping you deliver sharper insights, better customer experiences and consistent operational wins.

Know your needs, verify results and never lose the human connection that makes buying from your dealership a one-of-a-kind experience. AI can help you innovate — but the heart of the business will always be your people.