How AI Is Revolutionizing Dealership Efficiency: Insights from Reynolds & Reynolds VP Greg Uland

In an era where technology continuously reshapes industries, automotive retail stands at the forefront of innovation. The integration of Artificial Intelligence (AI) into dealership operations offers unprecedented opportunities to enhance efficiency, profitability, and customer engagement. Recently, Greg Uland, Vice President of Marketing at Reynolds & Reynolds, shared invaluable insights on how AI is transforming the automotive retail landscape during an exclusive interview on CBT News’ Driving Solutions.

This article dives deep into Greg Uland’s discussion, examining the current challenges facing dealerships, the evolving role of AI in automotive retail, and the game-changing solutions Reynolds & Reynolds is bringing to the table. Additionally, I, Rico Glover, recognized the urgent need for more data-driven dealership operations, which inspired the creation of this comprehensive guide to dealership efficiency — a must-have resource for those looking to thrive in a competitive market.

Table of Contents

• Table of Contents
• Current Challenges Facing Dealerships
• The Impact of AI on Automotive Retail
• Reynolds & Reynolds’ AI Innovations
• The Future of AI in Dealerships
• Why This Matters: A Note from Rico Glover
• Frequently Asked Questions
• Conclusion

Table of Contents

1. Current Challenges Facing Dealerships
2. The Impact of AI on Automotive Retail
3. Reynolds & Reynolds’ AI Innovations
4. The Future of AI in Dealerships
5. Frequently Asked Questions
6. Conclusion

Current Challenges Facing Dealerships

During his conversation with CBT News host Jim Fitzpatrick, Greg Uland highlighted three dominant themes that are top of mind for dealerships as they prepare for industry events like the National Automobile Dealers Association (NADA) show. These challenges reflect the complex landscape dealers face today:

1. Doing More With Less

Dealerships are under immense pressure to increase sales volume and service more vehicles without expanding their workforce or physical footprint. This means leveraging technology and operational efficiencies to maximize output and productivity. Uland described it as a balancing act: “Sell more cars, service more vehicles, and do it without adding people, do it without adding more space.” This challenge is especially critical given labor shortages and rising operational costs.

2. Increasing and Maintaining Margins

Profitability remains a key priority. Dealers are not only focused on improving margins within existing business areas but also on discovering new profit centers. Whether it’s through enhanced service offerings, better inventory management, or innovative sales strategies, boosting margins is a continuous goal. As Uland put it, “Finding new profit centers that we can create creating margins in” is a crucial area of focus.

3. Scaling and Growing Efficiently

Growth is essential for long-term viability, but it must be smart and sustainable. For some dealerships, this means expanding market reach; for others, it involves acquiring additional stores. The underlying question is how to achieve economies of scale without sacrificing efficiency. Uland emphasized the importance of efficiency in scaling: “How can we be more efficient because we grow?”

These challenges set the stage for why AI and advanced data solutions have become indispensable tools for dealerships aiming to stay competitive and profitable.

The Impact of AI on Automotive Retail

AI is no longer a futuristic concept—it is actively reshaping how dealerships operate. Greg Uland described AI as “the next wave” that will fundamentally change what is possible in automotive retail. However, he also cautioned that the industry is still in the early stages of AI adoption, with both positive and negative impacts emerging.

Positive Impacts of AI

• Increased Efficiency: AI-powered tools enable dealerships to do more with less by automating routine tasks and streamlining workflows.
• Smoother Processes: AI helps eliminate bottlenecks and improve customer interactions by providing timely insights and follow-up actions.
• Data-Driven Decisions: Advanced analytics and predictive models allow dealers to anticipate customer needs, optimize inventory, and improve pricing strategies.

Challenges and Risks

On the flip side, Uland highlighted the risk of technology overload—what he called “tech stack bloating.” Over the past two decades, dealerships have accumulated a patchwork of software solutions, each serving a specific function but often resulting in siloed data and duplication. AI amplifies this challenge because it relies heavily on clean, unified data to make accurate inferences and execute actions.

“If an AI tool can’t access all the data or there’s inaccuracies in the data or there’s duplicates in the data, a tool might actually go and execute something wrong,” Uland warned. This puts a premium on data management and integration as foundational steps before AI can deliver its full potential.

Reynolds & Reynolds’ AI Innovations

Reynolds & Reynolds has positioned itself as a leader in helping dealerships harness AI’s power through a cohesive, data-driven approach. Central to their strategy is the development of a unified data layer called Spark AI, launched at their Amplify event in the summer prior to the interview.

Spark AI serves as the backbone for all current and future AI-powered tools from Reynolds, ensuring that data is consistent, accurate, and readily accessible across dealership functions.

Core AI Products from Reynolds & Reynolds

• Conversation AI: This tool transcribes customer calls, summarizes conversations, and tags them with sentiment indicators, such as “upset customer” or “ready to buy.” It then triggers follow-up activities within the Customer Relationship Management (CRM) system, helping sales teams prioritize and personalize outreach.
• Engagement AI: Leveraging text messaging, this AI interacts with customers to advance them down the sales funnel, ultimately scheduling appointments with sales representatives. It streamlines communication and reduces friction in the customer journey.
• Prospect AI: This tool analyzes vast amounts of data to identify prospective buyers, predict what they will buy, when they will buy it, and how they prefer to make their purchase. It then takes action by prioritizing and targeting leads effectively.
• Merchandising AI: Focused on vehicle presentation, this AI creates VIN-specific descriptions, identifies which descriptions convert best, and enhances vehicle images by updating backgrounds and adding overlays. This improves online listings and attracts more buyer interest.

Introducing Avery: The AI Assistant Transforming Used Car Operations

One of the most exciting innovations Reynolds & Reynolds is unveiling is Avery, an AI assistant integrated into their AutoVision platform. Avery provides dealerships with actionable insights on pricing and stocking decisions, including:

• Pricing recommendations on how much to pay for a vehicle and what price to list it at for sale.
• Stocking advice on whether to acquire a specific vehicle and the optimal location to place it if the dealership operates multiple locations.

What sets Avery apart is its transparency. Unlike black-box AI systems, Avery explains its reasoning by showing the factors it considered to arrive at its recommendations. This feature builds trust and helps dealership staff learn from the AI’s logic.

Greg Uland shared that early dealer feedback on Avery has been overwhelmingly positive, citing its accuracy and usefulness as both a decision-making and training tool. “Depending on their level of confidence, which continues to grow, and their experience, they use it different ways,” he noted.

The Future of AI in Dealerships

AI’s role in automotive retail is poised to expand dramatically over the next several years. Based on Greg Uland’s insights and Reynolds & Reynolds’ strategic direction, several key trends will define the future:

Unified Data as the Foundation

Success with AI hinges on having a clean, integrated data environment. Tools like Spark AI will become indispensable as dealerships seek to break down data silos and ensure consistency across all departments. Data quality will directly impact AI’s effectiveness and accuracy.

Increased Automation and Actionable Intelligence

AI will evolve from merely assisting users to autonomously executing complex tasks, such as pricing adjustments, inventory allocation, and customer engagement. This shift will free up dealership staff to focus on higher-value activities.

Personalization at Scale

AI will enable hyper-personalized customer experiences by predicting needs, preferences, and behaviors with greater precision. This will enhance marketing effectiveness and improve customer satisfaction.

Training and Adoption Focus

As AI tools become more sophisticated, dealerships will invest in training programs to help staff understand and leverage AI insights fully. Tools like Avery that explain their reasoning will facilitate this learning process.

Integration with Broader Industry Events and Thought Leadership

Reynolds & Reynolds will continue to engage with the industry through events like NADA and the Automotive News Best Practices event, showcasing innovations and fostering dealer collaboration. Their presence on platforms like the Connected podcast further amplifies their thought leadership.

Why This Matters: A Note from Rico Glover

From my perspective, the insights shared by Greg Uland and the innovations from Reynolds & Reynolds underscore a critical shift toward data-driven dealership management. The complexities of today’s market demand that dealerships embrace technology not as a luxury but as a necessity. This realization inspired me, Rico Glover, to advocate for more data-centric approaches tailored to dealership efficiency.

By combining AI-powered tools with a unified data strategy, dealerships can overcome challenges such as resource constraints, margin pressures, and scaling complexities. This approach transforms raw data into actionable intelligence, enabling smarter decisions that drive growth and profitability.

Frequently Asked Questions

What are the main challenges dealerships face today?

Dealerships are primarily focused on doing more with less—selling more vehicles and servicing more customers without increasing staff or space. They also aim to maintain or increase profit margins and scale their operations efficiently.

How is AI currently impacting automotive retail?

AI is helping dealerships improve efficiency by automating tasks such as call transcription, customer engagement, lead identification, and vehicle merchandising. It enhances decision-making and streamlines workflows, although the industry is still early in adoption.

What is the Spark AI data layer from Reynolds & Reynolds?

Spark AI is a unified data platform that consolidates dealership data into a clean, integrated layer. It supports AI tools by ensuring consistent and accurate data, which is crucial for reliable AI-driven actions.

Can you explain what Avery does?

Avery is an AI assistant within the AutoVision platform that provides pricing and stocking recommendations for used vehicles. It advises on how much to pay for a car, how to price it for sale, and which location to stock it in, all while explaining the reasoning behind its suggestions.

Why is data quality so important for AI in dealerships?

AI tools rely on accurate and comprehensive data to make correct inferences and decisions. Poor data quality can lead to incorrect actions, such as mispricing vehicles or misidentifying prospects, which can harm dealership performance.

How can dealerships prepare for AI adoption?

Dealerships should focus on consolidating and cleaning their data, investing in unified platforms, training staff on AI tools, and partnering with trusted technology providers like Reynolds & Reynolds who prioritize data integration and transparency.

Conclusion

The automotive retail industry stands at a pivotal juncture, where the integration of AI and data-driven strategies promises to redefine dealership efficiency and profitability. Greg Uland’s conversation with CBT News sheds light on the tangible ways AI is already making an impact and what the future holds.

From tackling core challenges like doing more with less, to increasing margins and scaling operations, AI-powered solutions from Reynolds & Reynolds, especially innovations like Avery, are setting new industry standards. Their approach—grounded in a unified data layer and transparent AI recommendations—ensures dealerships not only adopt technology but truly benefit from it.

As someone deeply invested in enhancing dealership performance, I, Rico Glover, encourage all automotive professionals to embrace this data-driven revolution. The tools and insights are available; the key is to act decisively and integrate AI thoughtfully into your operations.

For dealerships ready to explore AI’s transformative potential, Reynolds & Reynolds offers a trusted partnership. Their presence at industry events like NADA and continued innovation make them a must-see resource for anyone looking to stay ahead in the automotive retail game.

To learn more, visit Reynolds & Reynolds at their booth or tune into their Connected podcast to hear from industry experts and thought leaders driving the future of automotive retail technology.