The Next Phase of AI That Will Reshape Car Dealerships Forever

Today I'm joined by AJ McGowan, VP of Research and Development at Reynolds & Reynolds. Most dealers have heard the terms generative and agentic AI, but AJ makes the case that a third phase called cognitive AI is already in development, and it is the one that will fundamentally change how dealerships operate. He breaks down why fragmented software platforms are quietly limiting what AI can see and do, uses a service drive scenario to show how a fully connected system could surface a high-value trade opportunity in real time, and explains why Reynolds is investing in its own hardware infrastructure to make that scale. If you are thinking about your software stack or your AI roadmap, this episode reframes both. Topics: 00:45 The ChatGPT Comment That Aged Horribly. 03:25 Why Auto AI Is Different. 06:45 Real AI Vs. Gimmicks. 08:45 Why Reynolds Is Buying Hardware. 13:15 The Bloomberg Terminal For Used Cars. 16:00 The Hipster Agent Before It Was Cool. 17:30 What Ray Actually Does. 19:45 Workflows Haven't Changed Yet. 21:20 Avery Runs Inventory While You Sleep. 22:50 Where Dealers Still Find An Edge. 25:10 The Veteran AI Can't Replace. 28:35 Why Consolidation Is Now Critical. This episode is brought to you by: 1. @TryMatadorAi – Most dealerships are losing leads in the follow-up. Matador AI fixes that. It's not generic automation. It's dealership-trained AI, built on millions of real conversations and optimized around what converts. In a thin-margin business, every conversation matters. Book your demo today and get your first month free @ https://matador.ai/cdg. 2. @Zurich.Insurance – Zurich Advisor IQ is Zurich’s AI-driven training and coaching platform built to help F&I teams perform more consistently and sell more effectively — using real transaction data, not theory. By analyzing actual F&I transactions, Zurich Advisor IQ helps identify behaviors and trends influencing results, delivers actionable insights and roleplay scenarios, and gives dealership leaders visibility into performance across managers, stores and rooftops. Connect with your Zurich representative to request a demo and see how Zurich Advisor IQ can help turn F&I insight into stronger dealership performance. Discover more @ https://carguymedia.com/3R1kv2Q 3. @reyreychannel – Turn cars faster and increase profit with AutoVision, an end-to-end inventory management suite that optimizes every step of the used vehicle lifecycle. From acquisition to sale, AutoVision gives you a clear way to manage inventory. Visit https://carguymedia.com/4uV5CwY for more information. Check out Car Dealership Guy’s stuff: For dealers: CDG Circles ➤ https://cdgcircles.com/ Industry job board ➤ http://jobs.dealershipguy.com Dealership recruiting ➤ http://www.cdgrecruiting.com Fix your dealership’s social media ➤ http://www.trynomad.co Request to be a podcast guest ➤ http://cdgguest.com For industry vendors: Advertise with Car Dealership Guy ➤ http://cdgpartner.com Industry job board ➤ http://jobs.dealershipguy.com Request to be a podcast guest ➤ http://cdgguest.com Car Dealership Guy Socials: X ➤ https://www.x.com/GuyDealership Instagram ➤ https://www.instagram.com/cardealershipguy/ TikTok ➤ https://www.tiktok.com/@guydealership LinkedIn ➤ https://www.linkedin.com/company/cardealershipguy Threads ➤ https://www.threads.net/@cardealershipguy Facebook ➤ https://www.facebook.com/profile.php?id=100077402857683 Everything else ➤ https://www.dealershipguy.com

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