"I believe AI is going to change the world more than anything in the history of humanity. More than electricity."

—Kai-Fu Lee, Chairman & CEO of Sinovation Ventures

Tackling Tariff Turbulence with Tech

AI is stepping into yet another high-pressure role in auto retail—this time, helping dealers make sense of mounting tariff confusion and keep business moving.

With the Trump administration’s proposed 25% tariffs on imported vehicles and parts looming large, dealers are seeing a spike in customer urgency.

According to Devin Daly, CEO of Impel, inbound leads have surged 25% as shoppers scramble to lock in prices before potential increases hit the sticker. Dealers are responding with “pre-tariff” promos—but they’re also turning to AI to help manage the chaos.

From Inbox Floods to Predictive Pricing

Dealerships are leaning on AI to triage skyrocketing lead volume and handle the top concern on customers’ minds: tariffs. Daly says AI allows human staff to stay focused on closing deals and test drives, while smart tools field questions and surface insights from incoming messages. And those insights are crucial—because buyers want clarity, and fast.

Jessica Stafford of Cox Automotive says the shift is reshaping how dealers think about marketing and inventory. With predictive scoring and real-time market data, tools like VinSolutions and Kelley Blue Book help dealers price strategically while staying nimble.

Planning for What’s Next

As the second half of the year approaches, many experts expect sales to dip once pricing effects settle in. That’s where AI is playing the long game—helping with smarter sourcing, supply chain visibility, and service department readiness. After all, if new car prices climb, used inventory and fixed ops could be the next pressure points.

From customer comms to cost modeling, AI isn’t just reacting to the tariff ripple effects. It’s helping dealers chart a smarter path through them.

There’s no shortage of strategies for moving inventory. But figuring out which vehicles are about to become your biggest problem is half the battle.

This week’s advanced prompt turns your aged inventory report into a tactical playbook.

It’s a smart way to get ahead of aging units before they turn into a loss. You can even ask follow-up questions like:

→ “What kind of offer should we use to move this specific VIN?”
→ “Which platforms should we advertise it on for maximum exposure?”

Think of it as turning your stale spreadsheet into a heat map—and finally making those aging units work for you.

• Management & Operations: AutoAid
  An all-in-one AI platform designed to streamline dealership operations across sales, service, parts, and marketing. Auto Aid offers tools for communication, task automation, and customer engagement, enhancing overall efficiency.

• Service and Parts: Toma
  An AI tool that books service appointments, automates parts line, and handles inbound leads, enhancing customer service and operational efficiency.
   

• Data Management: Lotlinx 
  Provides AI-driven data intelligence to optimize inventory management, reduce costs, and improve sales performance by analyzing market trends and customer behavior.
   

• Marketing & Advertising: Market Wiz AI
  Focuses on revolutionizing marketing strategies for car dealerships by driving sales and enhancing customer experiences through AI.
   

• Content Creation: Flowbots Auto
  An AI-powered content creator that provides tailored, ready-to-use content for social media, email, promotions, and more, keeping dealerships visible and relevant.

The Cost of Courtesy

What started as a cheeky observation turned into a full-blown energy economics debate thanks to a viral tweet about the polite habits of chatbot users.

The question posed:

The answer, according to OpenAI CEO Sam Altman, might surprise you:

Every interaction with an AI model, no matter how brief, taps into a vast web of compute power. According to researchers, generating a single 100-word response consumes enough electricity to power multiple households for an hour. Multiply that by billions of queries—and yes, even polite ones—and the environmental footprint adds up fast.

Yet, some experts argue those manners matter. Microsoft’s design team says polite inputs lead to more respectful, thoughtful responses—mirroring the tone of the user. If AI is going to assist us in daily life, perhaps treating it like a teammate (rather than a tool) helps shape better outcomes.

This moment is a microcosm of a bigger conversation: AI may feel invisible, but its effects are not. The electricity it uses, the behaviors it nudges, and the ethics it raises are all part of a larger shift. As Sam Altman put it, “You never know.”

• The Trump administration is considering placing new restrictions on the Chinese AI lab, DeepSeek. 🇨🇳

• xAI releases a “memory” feature for Grok that enables the bot to remember past conversations. 🧠

• Instagram is utilizing AI to identify teens lying about their age in order to bypass restrictions. 🕵️