Industry Advice Ask Mike: Are Current AI Technologies Good for Body Shops?

With Mike Anderson

This month, we “ASK MIKE” to share his thoughts on the industry’s current use of AI during the repair and claims settlement processes. We at Hammer & Dolly hope you find the following exchange useful, and we encourage you to reach out to us if you have a question for Mike on this or any industry-related matter that he can answer in a future issue.

Hammer & Dolly: We’re in 2025, and it’s clear that AI is here to stay in the collision repair industry and will very likely grow in impact. What are your thoughts on where the industry stands with it right now and where we’re likely headed in the future, especially with new advancements on the horizon?

Mike Anderson: I’m really excited about it. I know it’s not perfect, but we’ve just scratched the surface of what it can be used for. I use ChatGPT all the time. It isn’t specifically AI, but I like using Google to verify photos. My dad passed away a few years ago, and I was going through some of his belongings the other day. I saw a tool in his toolbox that I didn’t recognize. I took a picture of it and ran it through Google Images, and I immediately found out what the tool was and what it was used for. There are a lot of newer technologies that excite me.

Do I think AI can replace an estimator? No, but I think it can bring us to a future where it suggests things we may have overlooked or things we might want to consider. I think it’s great for writing letters, either to a vehicle owner or to an insurer. The other day, I was at a shop that wanted to use OEM parts for a repair, but the insurer wanted to use aftermarket parts. I went to ChatGPT and entered, ‘Write a letter to a vehicle owner about why they should pay out of pocket for OEM parts versus aftermarket.’ ChatGPT wrote up a really nice letter. I did have to modify it a little, but it did 90 percent of the work. This kind of assistance not only saves time but also ensures that important details aren’t missed. It’s not about replacing people; it’s about assisting them to do more in less time.

AI is a lot like nuclear weapons in that it depends on who is using it. In the right hands, it can be a powerful force for good. There’s a lot of potential for it in our industry. CCC, for example, has Jumpstart, which uses AI to analyze photos and generate a baseline estimate. AI will get smarter over time. As it processes more data, the accuracy and precision of these estimates will improve, ultimately enhancing efficiency and reducing errors.

There’s also Podium, which helps shops manage online reviews by using AI to craft responses. Whether you want the response to be humorous, professional or tailored to a specific tone, AI can handle it. By taking care of routine tasks like responding to reviews, AI frees up shop staff to focus on higher-value work. Some shops are even using AI to answer phones, helping with everything from scheduling appointments to addressing customer inquiries. 

These are exciting developments, and they’re just the beginning. As AI continues to evolve, it will likely play an even bigger role in streamlining workflow and improving customer experiences. Do I think it will be the silver bullet that solves all our industry’s problems? No, but it can certainly save time and make certain processes more efficient, which is a step in the right direction.

Hammer & Dolly: There are already clear advantages to having AI in the collision repair industry. It can help a user write a letter, but using ChatGPT as a research tool can be problematic, as it might draw from sources that aren’t entirely accurate or reliable. Are there elements of AI that concern you, especially regarding misinformation or over-reliance on automated systems for critical tasks?  

MA: We need to have a ‘trust but verify’ mentality when using AI. I’ve heard about students gaming the system by using AI to write their papers. AI can be used for good or bad. There was a time when shops wrote estimates by hand. If we had clung to that method…oh, my gosh, where would we be today? Technology is only as good as the intentions of the person using it. Some may use it to control, manipulate or audit you, while others may use it to improve in-house efficiencies. Today, people need to embrace AI and understand that it can get better every day. If we don’t use it, experiment with it and provide feedback, it will never improve. The key is finding the balance between leveraging AI’s potential and ensuring it aligns with our goals and ethical standards.

With claim counts so low these days, it’s not a bad idea to consider how AI can help shops capture more work through customer interactions after hours and things of that nature. AI could also help streamline the booking process and improve follow-ups, ensuring no new work is missed. That’s where I think the opportunities lie.

Want more? Check out the February 2025 issue of Hammer & Dolly!