Is Your Vendor Cutting Corners with AI? The High Cost of Poorly Implemented “Innovation” in Warranty Reimbursement BY JORDAN JANKOWSKI, CHIEF OPERATING OFFICER, ARMATUS DEALER UPLIFT Across the retail warranty reimbursement industry, vendors have begun aggressively touting AI as a transformative force — promising faster processing, smarter job classification and better analytics. However, 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 it’s used to enhance human expertise. It’s effective at pattern recognition, trend analysis and automating repeatable tasks, but 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 inappropriately — using it as a stopgap for underlying system flaws. One example is the reliance on AI to overcome poor opcode 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 24
RkJQdWJsaXNoZXIy MTg3NDExNQ==