A South Korean software company is pushing AI-powered kiosks that could eventually replace human sales representatives at your local dealership.
While industry experts speaking to Automotive News have expressed skepticism, noting that businesses are often hesitant to embrace change, it likewise suggested the next vehicle you purchase may indeed be bought from artificial intelligence.
The company is called Epikar and the system has been dubbed the “Pikar Genie.” Customers can walk up to the screen, browse the vehicles they’re interested in, and even speak with the AI to get additional information. Epikar is basically trying to replicate a humanoid sales representative using software and internet connectivity.
Pikar Genie can allegedly handle inventory management across multiple dealerships and even help schedule test drives. However, it does seem like buyers will still need to finalize everything with a living, breathing finance person while they oversee the final steps (and document signing) before anyone is handed the keys.
According to the report, numerous brands are already using the kiosks to a limited degree in South Korea. In most cases, Epikar noted that their staffing needs were effectively halved. It also wants to see the business expand into Europe and the United States — with reducing overhead being the primary sales pitch.
In fact, they are already being tested in the United States in very small numbers. But Fleming Ford, Director of Strategic Growth at NCM Associates, told Automotive News that it might take a while before they go mainstream.
“The showroom isn’t just where you buy a car,” he told the outlet. “It’s where you decide who to trust to help you to choose the right car.”
It’s an interesting statement.
Salespeople, especially those working for automotive dealerships, often don’t have the most sterling reputations. Your author has certainly caught more than a few lying about a car and some have proven not to be more knowledgeable about the products they’re selling than the average enthusiast. But there are also plenty of honorable people selling you an automobile, should you know where to find them.
Still, unless you plan on having a particularly close relationship with that person, the most they can realistically offer you is a discount on the price of whatever vehicle you were looking to purchase. While discounted vehicles do seem to be making a comeback, the industry remains keen to normalize markups and no-haggle pricing.
Pushing automated transactions is another component of that scheme. Many companies have been stressing that direct sales will be the future of the automotive industry. But practically every state has rules prohibiting or restricting manufacturers from selling directly to consumers. This was originally done to stop automakers from creating regional monopolies that would crush independent storefronts.
While we now have franchised dealerships that are forced to adhere to specific guidelines set by the manufacturer, and the brunt of all showrooms are part of larger dealer networks, the majority have remained independently owned. But there are recent exceptions from brands like Tesla, which has managed to field storefronts owned by the company in numerous states.
The law remains weighted against a direct sales model inside the United States and most dealership owners would certainly prefer to keep it that way. But the concept of replacing their staff with computerized alternatives that don’t take a commission might be appealing. No-haggle pricing would just be a byproduct, with the system presumably adjusting the default price to whatever number the algorithm decides.
Truth be told, not having to haggle or push back on curious fees are things most customers would probably welcome. But the odds of this resulting in a financial benefit for the person purchasing the automobile are beyond slim. One also wonders how laying off another group of people so they can be supplanted by machines bodes for regional economies.
Anyone who has been to a McDonald’s restaurant and noticed the pivot to grayscale interiors and ordering kiosks knows how bleak things can get. The situation with self-checkout lanes at grocery stores is similarly grim. Few people seem to enjoy them and the primary beneficiary is the business itself. It’s hard to imagine normalizing AI kiosks at dealerships receiving a warmer welcome seems unlikely, even if people aren’t prone toward liking human sales reps.
As for Epikar, the company announced that it wanted to raise $10 million in investments last December. The funds are supposed to go toward expanding the business, with a focus to break into Western markets. This includes establishing a U.S. headquarters.
[Image: Virrage Images/Shutterstock; woodsnorthphoto/Shutterstock; metamorworks/Shutterstock]
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