Flai is making a significant impact in the automotive sector by scheduling 50,000 appointments each month with its AI-driven dealership software. This isn’t just another chatbot; it serves as a full-fledged customer communication platform that integrates seamlessly with existing Dealer Management Systems (DMS), Customer Relationship Management (CRM) systems, and scheduling tools. The company emphasizes personalized communication around the clock through phone calls, texts, and emails, setting a new benchmark for how dealerships engage with their customers.
In just one year, Flai has made impressive strides. The startup is working with more than 10 of the top 50 dealer groups in the country. CEO Ari Polakof reports that implementing Flai’s AI technology has resulted in a remarkable 20x increase in revenue for its clients. This growth highlights how effectively the software connects with customers, boosting engagement in both sales and service departments.
Recently, Flai raised a $27 million Series A funding round, led by Base10 Partners, a firm known for its focus on automation investments. This round also attracted participation from notable dealers like the Friedkin Group and Findlay Automotive, along with contributions from Toyota’s venture arm, Y Combinator, and First Round Capital.
The adaptability of Flai’s software is a key advantage. Earlier this year, the company launched its AI solution with a luxury dealer in Puerto Rico, where the system skillfully managed conversations in both Spanish and English. This capability to cater to diverse customer needs has allowed Flai to expand its services from handling inbound service calls to managing full sales operations, with the luxury dealer now implementing the software across all eight of its locations.
Dealerships that collaborate with Flai report not only increased sales but also enhanced customer satisfaction, as clients receive prompt responses to their inquiries. Polakof stresses the role of customer referrals in driving Flai’s growth, noting that half of the company’s revenue comes from new clients referred by satisfied customers. This success arises from a commitment to treating every customer as if they are the only one. Flai can be operational in a dealership just 10 days after a contract is signed, a timeline much faster than what many in the automotive software sector experience.
Polakof says the team – now around 40 people – is required to respond to customers within 20 minutes. “The common experience, especially around automotive [software] vendors, is – and many are almost traumatized by this – is that they sign the contract and then the company disappears,” he said.
Flai’s deep understanding of dealership operations helps it stand out from competitors like Muse, which Meta has pitched as a one-shot solution for small businesses. Polakof believes that Flai’s dedicated focus on the specific needs of dealerships makes it challenging for outside platforms to gain market share.
Despite these significant achievements, Flai’s team is now up to around 40 people, and Polakof has one particular goal in mind: converting his local dealership into a customer. He humorously remarks, “I’m actually trying much harder than I should to make them a customer,” with hopes of securing their business by next year.
