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How the Automobile Industry Is Using AI and Chatbot for Customer Service?

  • Writer: Vaibhav Karanwal
    Vaibhav Karanwal
  • Jul 15
  • 5 min read
Automobile Industry Is Using AI and Chatbot

The automobile industry has a changes through advanced technology. The most important change is customer service. Artificial intelligence and chatbots are used for customer service. These tools give better experiences and personalized support to the customers. Over the years, AI and chatbot have seen widespread adoption across various sectors, such as commerce, banking, and healthcare services. They will satisfy the customer through better experiences. This blog will explain how the Automobile industry is using AI Chatbots to improve Customer experiences. 


What are AI and Chatbot?

Artificial intelligence is an advanced tool that helps in think and learn like humans. AI can able to understand languages, recognize pictures, learn from data, make decisions, and so on. AI is found in the automobile, healthcare, and education industries. There are 2 categories of AI:


  1. AI by Capability

  2. AI by Functionality


On the other hand, A chatbot is an AI program that chit-chats with people by typing and speaking. They help with instant replies. Chatbot is found on Websites, Apps, and Platforms like WhatsApp and Messenger. There are 2 categories of chatbots:


  1. Rule-based chatbots

  2. AI chatbots


If you want to create your own AI chatbot. An AI chatbot development company offers custom chatbot design, data security support, and updates.


Why Customer Service is Important in the Automobile Industry

Customer service is important for every industry. We talk about the automobile industry. Customers have many queries about buying a car. AI in automobile answers quickly. These questions are:


  • What are the features of the car?

  • What is the price?

  • Is financing available?

  • How can I book a test drive?

  • Where is the nearest showroom?

  • What if something goes wrong with my car?


How is Artificial Intelligence used by Chatbots?

Chatbot development services are using AI in many ways:


1. 24/7 Chat Support

Earlier, customers asked questions to call customer care or visit the showrooms. But technology is growing, and AI chatbots give instant responses and 24/7 chat support. Customers get answers anytime. For example, a car company, Tata Motors, uses AI and chatbots on their websites and WhatsApp. The customer can ask here for models, and features and take a test drive in one place.


Benefits:

  • No waiting time

  • Instant replies

  • Works even on holidays and weekends


2. Personalised Recommendations

AI in automobile uses data to understand customer needs. For example, if you visit a car company to purchase a car, AI can take feedback and suggest the best cars.


  • Budget

  • Fuel type 

  • Seating capacity

  • Usage (city drive or long travel)


Now, if you are looking for a family car under ₹10 lakhs with good mileage, the AI will show according to personalized recommendations.


Benefits:

  • Saves time

  • Makes better decisions

  • Builds trust with the brand


3. Easy Booking and Test Drives

AI and chatbot will help in easy booking and test drives. They help customers without any long forms. Just type ‘I want a test drive’. Chatbots will get details from you, and the system will show the nearest showroom and slots. 


Benefits:

  • Quick and smooth booking

  • Fewer human errors

  • Better customer experience


4. Handling Customer Complaints

Sometimes, complaining is a long paper-based process. An AI chatbot development company helps customers:


  • Register complaints

  • Check the status of the complaint

  • Get solutions faster


Benefits:

  • Faster problem resolution

  • Less frustration for customers

  • Better brand image


5. AI in After-Sales Service

Customers need regular maintenance and servicing. AI helps in:


  • AI can remind customers when their car is due for service

  • It can suggest the best time and date based on previous visits

  • It checks parts availability and can even auto-book appointments


Benefits:

  • Regular car health check

  • Timely reminders

  • Improved customer satisfaction


6. Voice-Based Assistance in Cars

AI voice-based assistance in cars is common in modern cars. The driver can command them like:


  • Call the service center

  • Check tire pressure

  • Navigate to the nearest petrol pump

  • Play Music


For example, the new model of MG Hector uses voice-based commands in English and Hindi. 


Benefits:

  • Hands-free control

  • Better safety

  • More comfort


7. AI Sales Process

AI helps the sales team by showing the model to the customers. It will do

  • Website visits

  • Time spent on certain car pages

  • Test drive history

  • Customer location


The AI gives data according to the rank of potential buyers and follows up with the right people. 


Benefits:

  • More sales

  • Less effort

  • Focused marketing


8. Virtual Showrooms and Augmented Reality

Many companies used AI and AR to show virtual showrooms. Customers can:


  • Walk through the showroom online

  • Check car interiors in a 360-degree view

  • Customise car color, features, and accessories


AI chatbot guides the complete process and reduces customer physical visits. Hyundai and BMW offer virtual experiences on their websites and apps.


Benefits:

  • Safe and convenient

  • Visual and interactive experience

  • Better decision-making


9. Language and Regional Support

India is a country that has various languages. AI chatbot understands these languages and responds in regional languages. Chatbot development services help smaller-town customers. It also gives benefits in regional markets. For example, Mahindra’s chatbot supports multiple Indian languages for customer service.


Benefits:

  • Wider reach

  • Stronger customer connection

  • Higher trust


10. Cost Saving and Efficiency

AI and chatbot save money by handling thousands of clients daily. It reduces the number of customer support team members. AI can answer automatically. 


Benefits:

  • Lower operational costs

  • Less human error

  • Faster service


How is Gen AI helpful in the Automobile Industry?

Area of Application

How Gen AI Helps

Design

Generates car designs, interiors using AI-driven creativity

Manufacturing Process

Optimises assembly line workflows and predicts faults in machines

Quality Control

Quality Control

Detects defects using AI image recognition and improves inspection accuracy

Predictive Maintenance

Analyses vehicle data to predict part failures before they happen

Customer Service

Powers chatbots to answer customer queries, book services, and handle complaints

Personalized Marketing

Creates personalized ads and offers based on user behavior and vehicle history

Vehicle Software Updates

Auto-generates and tests software code for in-car infotainment and safety systems

Virtual Showrooms

Creates 3D and AR-based car experiences for online buyers

Inventory Management

Forecasts demand and generates purchase suggestions for car parts and materials

Driver Assistance Systems

Helps train AI models for autonomous driving features like lane assist and braking

Conclusion

AI and chatbot are changing the way of work in the automobile industry. From instant response to booking service, they will help customers and companies both. AI development company offers customer support, personalised recommendations. As technology grows, these tools will give you smarter customer service in the automobile industry. In the future, the use of these tools will be growing. The need for this is increasing with the rise of vehicles and self-driving technology. It will help the automobile companies stay competitive.

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