Ben Sporn, chief marketing officer of VIP Auto Group, has transformed the family dealership’s operations with artificial intelligence (AI). After working at Google and several startups that utilized AI, Sporn founded his own business creating AI-powered systems. He has since developed over a dozen AI-based solutions for the dealership group.
These solutions have saved the group hundreds of thousands of dollars without cutting staff, according to Sporn. The staff has been receptive to the changes, with many asking for more AI integration to save time and money. Sporn noted that there’s a misconception about AI, but the people in his company love it and are excited about the opportunities it provides.
Streamlining Operations with AI
VIP Auto Group, based in Long Island, New York, encompasses 10 rooftops and 15 brands. When Sporn joined the company, he realized that it was spending too much money on AI-powered software that didn’t meet the group’s specific needs. He set out to create custom software using AI to address these issues.
One area where AI has made a significant impact is in the group’s wholesale parts sales. Sporn overhauled the sales page, implementing AI email drafting, ordering and fulfillment monitoring, and a self-service return platform. This has led to significant revenue and net profit growth in the e-commerce department, which is now the most AI-enabled department in the group.
The AI tools have also improved customer service representative ticket handling, tripling the number of tickets handled. Sporn created a “customer service draft” function that takes several actions every 15 minutes, including checking for incoming customer emails and providing context and replies for the customer service representatives to review and send.
This has boosted the representatives’ productivity threefold, as they no longer need to check multiple systems to track parts. Instead, they review the reply in the folder, make any changes, and hit send. Sporn noted that the AI does a lot of the work, but it’s still important to keep a human in the loop to verify the accuracy of the information being provided.
Using AI has actually increased the dealership’s e-commerce headcount, according to Sporn. The group has also automated the insurance claim process, using AI to manage the operation and reduce rates. Additionally, Sporn has used an AI agent to map out every service customer’s maintenance schedule, including service performed and recommended but declined.
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The AI agent prints a PDF with this information and includes a human in the loop to ensure accuracy. This has provided transparency for the service advisors and saved the service manager about two hours a day. Sporn is working on having the PDF sent directly to the printer the night before the customer arrives, so it will be ready and waiting for the service advisor the next morning.
Replacing Costly Software with AI
Sporn has also created an AI system that reads every online review and automatically crafts and sends responses to five-star Google reviews. The system injects Search Engine Optimization terms into these responses, using Sporn’s experience working in marketing at Google.
The program sends the general manager a daily email with all the reviews from the previous day, including AI-generated responses for the bad reviews. This has replaced costly reputation management software, saving the dealership group hundreds of thousands of dollars. By creating its own AI tools, the group has saved money that would have been paid to outside vendors, according to Sporn.
For example, Sporn created a vehicle record tool that has been approved by Dealer.com and other website providers, saving the group money and providing the added benefit of being VIP Auto Group branded. He has also built a tool called Pronto that allows salespeople to send customers personalized videos after they leave the salesroom, replacing a similar tool from an outside vendor.
The auto group now has a moratorium on new software, with Sporn instructing staff not to sign up for new software until they figure out if they can build it themselves. This approach has allowed the group to replace five or six vendors and save half a million dollars easily on software that has been replaced internally, according to Sporn.
VIP Auto Group’s experience with AI is in line with the latest Cox Automotive AI in Automotive Retail Tracker, which found that 82% of dealers use AI today. However, while 69% expect AI to drive sales and revenue growth, some 33% aren’t measuring AI’s impact or have no clarity on how they’re measuring it, according to the report.
The group’s use of AI has also improved its insurance claim process, with Sporn building software around the exact process used by the individual handling insurance claims. This has made the process more efficient and reduced rates, as the group is now seen as a “AAA-rated technology firm” by insurance companies, according to Sporn.
