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where dealers are facing challenges and to discover new opportunities to help dealers thrive. One
technology continually in the headlines is artificial intelligence (AI).

What Is AI?
AI can be a nebulous term for many. By definition, it refers to a machine or computer system’s ability
to perform tasks typically performed by humans or that incorporate human intelligence. AI consists
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of programming systems to scrutinize data, learn from past experiences, and make smart decisions
guided by human input. A common form of AI is virtual assistants such as Siri or Alexa; however,
there are many variations of the technology.

AI Usage & Applicability to Dealerships
The rise in AI’s popularity has had a significant impact on the dealership industry across auto,
machinery and equipment, commercial truck, and recreational dealers. Many dealers have leveraged
AI for a number of benefits:

Risks & Security Concerns When Using AI
While the use of AI provides several benefits and increased efficiency for dealerships, there are also
potential risks, including data privacy and security concerns, over-reliance on the technology, bias in
algorithms, and implementation and maintenance costs. Dealers should be aware of these risks, as
well as potential threats AI can pose through misuse. The leading type of misuse of AI functionality is
prompt injection attacks that are designed to manipulate an AI tool into generating malicious content
or providing restricted information.

Regulatory Requirements & Laws Related to Development,
Deployment, & Use of AI Systems
As your dealership leverages AI or considers its use, there may be various legal
and regulatory requirements depending on the type of AI systems, data used,
type of business connection, and the location of both your dealership and your
customers. AI-specific laws and regulations may also apply to dealerships
(indirectly) if they serve as a vendor/supplier for organizations subject to the
requirements.

Identifying & Addressing AI Risks
To help mitigate or address AI security risks that impact dealerships, it’s 27
important to adopt robust security controls and frameworks that specifically
address the challenges posed by AI technologies. Two recommended
frameworks/standards designed to assist organizations in navigating AI risks
include NIST AI 100-1, Artificial Intelligence Risk Management Framework (AI
RMF 1.0) and ISO/IEC 42001:2023, Information technology — Artificial intelligence
— Management system. 7
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On The Move 2023