The use of AI in car dealerships is no longer science fiction and something that is a futuristic concept. AI is in dealerships right now.  For many, leveraging the capabilities of AI will revolutionize numerous aspects of dealership operations. From enhancing customer experiences to streamlining internal processes, the applications of AI in dealerships are extensive and diverse.

Here’s some of the ways in which dealerships are now harnessing the power of AI to drive efficiency, improve decision-making, and elevate their competitive edge:

• Using Conversational AI in Service Scheduling: Implementing conversational AI in the service department enables seamless 24/7/365 appointment scheduling for customers. Calls that go unanswered become a thing of the past. With AI, dealerships can offer personalized assistance around the clock, enhancing customer satisfaction and reducing administrative overhead.
• Chatbots for Customer Engagement: AI chatbots serve as virtual assistants, engaging with customers in real-time to address inquiries, provide product information, and facilitate sales. By deploying chatbots on their websites and social media platforms, dealerships can enhance their online presence and foster meaningful interactions with potential buyers.
• Inventory Management and Sales Forecasting: AI algorithms can analyze vast amounts of data to optimize inventory management, ensuring that dealerships have the right vehicles in stock to meet customer demands. Moreover, AI-driven predictive analytics enable more accurate sales forecasting, empowering dealerships to make informed decisions and allocate resources effectively.
• Data-Driven Marketing Strategies: By leveraging AI to analyze customer data and behavior, dealerships can tailor their marketing strategies to target specific demographics, enhance customer engagement, and drive conversions. AI-powered tools enable marketers to identify trends, predict consumer preferences, and deliver personalized campaigns that resonate with their target audience.

However, while AI offers enormous potential for car dealerships, it also presents new challenges and risks, particularly in terms of cybersecurity. As AI technology becomes easier to use and more accessible, so too do the capabilities of cybercriminals to exploit it for malicious purposes.  This is the scary part.

The following AI-related threats are not future predictions; they are happening today. The first step in preparing an effective defense against these threats is to be aware of them and remain vigilant:

• Impersonation and Fraud – Cybercriminals are now using AI to impersonate dealership management and employees, leading to fraudulent activities such as directing funds to unauthorized accounts or spreading harmful misinformation on social media. For instance, it is now rather easy for a cybercriminal to impersonate a dealer and publish a video on social media of the dealer making racist remarks and damaging the dealership’s reputation.
• AI Hallucinations – Certain types of AI are susceptible to hallucinations. Cybercriminals can induce an AI hallucination through a prompt injection attack.  Prompt injection attacks involve tricking an AI tool to publish sensitive information, disregard established rules, violate government regulations, deliver erroneous or misleading advice.  For example, a prompt injection attack was used to trick a dealership’s AI chatbot into selling a car for a dollar.
• AI-Generated Phishing & Vishing – With employee phishing awareness training, employees are trained to identify a potential phishing attack. This includes looking for spelling errors and grammatical mistakes.  However, AI-generated phishing emails, direct messages, and even phone calls (vishing) are much more realistic.  AI eliminates the typical phishing and vishing tipoffs.  The use of AI by the cybercriminal has upped the game when it comes to phishing and vishing.  This is another reason why cybersecurity isn’t static.  It is in constant flux as technologies and capabilities evolve.

So, I guess you’d like to know what you should do to protect your dealership.  Well, here are a few suggestions for protecting your dealership from an AI related cyberattack:

• Defensive AI Solutions: Defensive AI systems use AI to combat an AI related cyberattack as well as cyberattacks that don’t leverage AI. Defensive AI systems can proactively detect and counter evolving cyber threats, such as AI-generated phishing attempts or malware attacks. These systems leverage machine learning algorithms to analyze network traffic, detect anomalies, and respond to potential threats in real-time.
• Continuous Threat Assessments: Regular threat assessments help identify and prioritize potential risks, enabling dealerships to stay one step ahead of cybercriminals. By collecting and analyzing relevant data from network traffic, logs, and threat intelligence feeds, dealerships then can train AI models to detect and mitigate emerging threats effectively.
• Comprehensive Cybersecurity Strategy: A cohesive cybersecurity strategy that integrates people, processes, and technology is essential for safeguarding dealership assets and customer data. By combining employee training initiatives, strong user authentication protocols, and AI-driven threat detection capabilities, dealerships can create a forceful defense against cyber threats.

AI presents extraordinary opportunities for car dealerships – it also introduces new complexities and risks. By embracing AI responsibly and implementing proactive cybersecurity measures, dealerships can unlock its full potential while safeguarding against malicious exploitation. Ultimately, a strategic approach that combines technological advancements with vigilant cybersecurity practices and a team of knowledgeable and experienced cybersecurity professionals is key to safely securing the benefits of AI-driven innovation.