The buzzword for the automotive industry in 2024 and a prominent focus at the 2025 NADA Show was artificial intelligence (AI). However, AI isn’t new—it has been a part of the industry for over a decade. In today’s episode of CBT Now, we’re joined by Marianne Johnson, chief product officer of Cox Automotive, to discuss how the company integrates AI into its products and services and how dealers can implement these tools to enhance their operations.
For over a decade, Cox Automotive has leveraged artificial intelligence across multiple platforms, embedding it into tools such as vAuto for inventory management, Xtime for service drive operations, and CRM solutions to streamline customer interactions. These AI-driven tools help dealers optimize pricing strategies, enhance service scheduling, and personalize customer engagement.
While artificial intelligence itself isn’t new, what is new is the evolution of generative AI. The increasing accessibility and prominence of generative tools—such as OpenAI’s models—have been a tipping point in the industry. The data has always been available, but advances in computing power and larger language models now allow these tools to process and analyze vast amounts of information faster and more accurately. As a result, it can predict user intent, recommend next actions, and even generate text or images tailored to specific customer interactions.
However, Johnson emphasizes that AI is only as valuable as the provided data. All forms of AI—legacy, generative, and agentic—rely on high-quality, current, and relevant data to function effectively. AI models must be properly trained with accurate and well-maintained information to produce meaningful insights and avoid misleading outcomes. If the data is outdated or incomplete, AI-powered interactions may lead to frustrating or inaccurate experiences for consumers.
Johnson advises dealers to ensure their customer data remains updated and relevant to maximize the benefits of Cox Automotive’s AI-powered tools. A well-maintained data set allows AI to provide personalized recommendations, automate follow-ups, and create a seamless customer experience. On the other hand, outdated or irrelevant information could deter potential buyers and damage customer trust.
One of the emerging advancements in artificial intelligence is agentic AI, which refers to models capable of performing tasks autonomously without direct human intervention. These systems can take actions on behalf of the user, such as scheduling service appointments, responding to customer inquiries, or automating pricing adjustments based on market conditions. While this level of automation presents exciting opportunities, it also requires careful oversight to ensure AI-driven actions align with business goals and consumer expectations.
A common concern among industry professionals is whether artificial intelligence will replace human jobs. Johnson stresses the importance of viewing AI as an assistant rather than a replacement. AI excels at automating routine, lower-level tasks, allowing dealership employees to focus on higher-value activities that require human judgment, creativity, and personal interaction. By reducing administrative burdens, AI enhances workforce productivity, allowing employees to dedicate more time to customer service, relationship-building, and strategic decision-making.
Ultimately, AI is transforming the automotive retail landscape, and Cox Automotive remains at the forefront of these innovations. By integrating AI-driven tools into their operations, dealers can improve efficiency, enhance customer engagement, and stay competitive in an evolving market. However, the key to success lies in maintaining high-quality data, embracing AI as an enabler rather than a disruptor, and ensuring that technology enhances—not replaces—the human element of the customer experience.
"I would view everything with AI as one simple phrase: it's a great assistant. It makes every opportunity more productive so your workforce can work on higher-value activities. It automatically gives every business in every industry a productivity lift if used correctly." – Marianne Johnson
