IS YOUR VENDOR CUTTING CORNERS WITH AI? Across the retail warranty reimbursement industry, vendors have begun aggressively touting artificial intelligence (AI) as a transformative force, promising faster processing, smarter job classification and better analytics. But beneath the marketing buzzwords lies a more complicated reality. When implemented without care or understanding, AI can introduce risk and inaccuracy, undermining the very goals it claims to achieve. AI SHOULD SUPPORT HUMAN JUDGMENT, NOT REPLACE IT AI is a powerful tool when used to enhance human expertise. It’s effective at pattern recognition, trend analysis, and automating repeatable tasks. However, it is not a stand-in for deep domain knowledge or regulatory insight, especially in complex and specialized processes like warranty reimbursement. Unfortunately, some vendors are deploying AI in inappropriate ways, such as using it as a stopgap for underlying flaws in their systems. One example is the reliance on AI to overcome poor op code usage in dealer management system (DMS) data. While AI may appear to “fill the gaps,” the correct data is often already present within the repair order. The real issue lies in software that lacks the ability to accurately extract and interpret this information. Overlaying AI to patch these shortcomings isn’t innovation — it’s a shortcut that may compromise data integrity. RESPONSIBLE AI USE IS NOT A SHORTCUT Organizations that use AI effectively do so to enhance the performance of their expert teams, not to automate away critical decision-making. In well-designed systems, AI can help parse data more efficiently, freeing professionals to focus on nuanced analysis, validation, and ensuring compliance with state laws. Quality in warranty reimbursement doesn’t come from speed alone — it requires meticulous review and expert oversight. If a vendor suddenly claims vastly improved accuracy thanks to AI, it’s fair to ask: Why wasn’t accuracy a priority before? And is speed worth it if it undermines trust in your rates? In this domain, a lack of quality can translate directly to lost revenue. The High Cost of Poorly Implemented ‘Innovation’ in Warranty Reimbursement By Jordan Jankowski, Chief Operating Officer, Armatus Dealer Uplift 44 MONTANA AUTO DEALER
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