By Marianne Johnson, EVP & Chief Product Officer, Cox Automotive
Artificial intelligence is no longer a distant promise, and it’s not about what’s trending. AI is a present-day disruptor, being embedded now into dealership operations and transforming how we buy, sell, service, and own vehicles. We’re not talking about the future anymore, we’re living it.
The disruption is now
Every role in the dealership is being redefined. Salespeople, service advisors, F&I managers, and business development representatives are all seeing their workflows fundamentally reshaped by AI. Some roles are evolving, others will disappear, and new ones are emerging. But human creativity and oversight for higher-level thinking remain essential to the responsible and effective use of new tools.
Take VinSolutions Predictive Insights with GenAI for example. It’s not just answering questions; it takes personalization to a whole new level, engaging customers across text, email, and other channels, learning from interactions, leveraging first party data and insights, and improving outcomes for dealerships. This doesn’t take a human out of the process, but it makes them more efficient and effective in engaging potential buyers – all while enhancing the customer experience. GenAI users in VinSolutions are seeing a 26% lift in appointment conversions.
Agentic AI: The next frontier
The true power of AI lies in the quality and connectivity of data that unlocks smarter decisions, unmatched personalization, and seamless experiences. This becomes increasingly vital as agentic AI emerges, enabling intelligent agents to handle tasks and orchestrators to coordinate them seamlessly.
Agentic AI has the ability to plan, reason, use tools, and execute tasks autonomously. Think about it like this: we’re shifting from “AI assists humans” to “AI agents work autonomously.” Agentic AI goes beyond generative AI. AI Agents can compress processes that once took days into minutes. This is a step further than automation, it’s orchestration.
This is where the real transformation happens. Think about how this might evolve (and in some cases is already evolving) dealership operations. An AI agent might handle tasks like scheduling or inventory lookup – freeing up humans to perform uniquely human work or handle more volume than they previously could.
Agentic AI amplifies everything: connected data becomes a competitive superpower. In an agentic future, those that invest in quality connected data infrastructure will watch AI transform their operations, while those with fragmented systems will find their agents limited by the very foundations they’re built upon.
Governance and Responsibility
Of course, this power doesn’t come without responsibility. Here’s what won’t change: our focus on outcomes, our responsibility to customers, and our commitment to doing this transformation in a way that makes people more valuable, not less. At Cox Automotive, we have a robust governance framework to ensure AI is deployed safely, securely, and ethically. Human-in-the-loop validation remains critical. The key for dealerships is finding that balance: being agile enough to harness AI’s power while keeping your data protected and systems secure at scale.
What’s Next?
The AI transformation continues to accelerate and drive new outcomes for the auto industry. Our dealer clients are already reaping the benefits of AI today – from Autotrader’s intelligent listings to vAuto’s inventory optimization, Manheim condition reports, and Dealertrack’s F&I automation. AI is the most powerful when it’s embedded in the tools teams already rely on, working in the background to enhance workflows, not disrupt them.
For dealers, the message is clear: lean in. Think about what your end user is going to expect. The shift from AI-assisted to AI-autonomous operations is well underway. AI is redefining the next era of automotive, and those who choose to strategically embrace it will have the opportunity to unlock new efficiencies, better customer experiences, and growth.
At Cox Automotive, we recognize that the pace of AI adoption varies widely, and the dynamics of automotive retail and wholesale are complex and continue to evolve. The question isn’t whether AI will transform automotive, it’s whether you’ll lead that transformation or be left behind. We supported the automotive industry over the past decade as the industry transformed, and we’ll continue to support our clients through the AI transformation with the same lens in mind. Come join us as we lead AI innovation.
