CarMax to roll out updated AI chatbot tools

CarMax is testing AI chatbot capabilities for retail associates and is rolling out an updated version of its consumer-facing virtual assistant as the company aims to heighten digital interactions. CarMax’s associate-facing AI tool, Rhodes, allows employees to access information and support they need to assist consumers, including navigating the laws and regulations for the 40-plus states that the company operates in, Nick Anderson , vice president of data science and AI, told Auto Finance News . “Our knowledge base to do business is massive — thousands of documents, rules, policies and procedures,” he said. “When a customer calls in and they have a question about our process, we have a centralized call center." Associates need to quickly and accurately answer consumers, Anderson said, noting that CarMax employs a method that incorporates external knowledge sources into large language models to retrieve information that is up to date. “We’re using AI in a controlled way so that we can maximize the accuracy of the answer we turn back to our associate." -- Nick Anderson, CarMax “We’re using AI in a controlled way so that we can maximize the accuracy of the answer we turn back to our associate,” he said. “The answer comes back in seconds, and the associate has the knowledge and sees the references and is able to help that customer without escalating.” Associates can also view summaries of prior calls or chats from the consumer to learn where they are in the process of shopping for a vehicle, Anderson said. [caption id="attachment_58330803" align="aligncenter" width="1024"] (Courtesy/Bloomberg)[/caption] CarMax is testing the expansion of Rhodes from only call centers to in-store associates, he said, noting that the company is deciding how those interactions will work. “We’re testing a different user interface because the customer is there in person instead of behind the phone,” Anderson said. CarMax is also adding tech that allows employees to, for example, provide customers with information that complies with their state-specific regulatory requirements, he said. “It’s about equipping our associates with the information or the best practices at their fingertips to be our best sales consultants,” Anderson said. CarMax is also looking at expanding Rhodes’ capabilities to other areas of the business such as CarMax Auto Finance call centers, he said. “It branches off into 1,000 other things that we can potentially do because not all of our associates are helping [consumers] buy or sell a car,” he said. “We have associates who are doing service, we have knowledge workers at the home office. [We] think about all the mini [AI] agents that we can create that help make our jobs more efficient.” Launching Skye 2.0 CarMax also is launching a new version of its customer-facing AI virtual assistant, Skye, Anderson said, noting that the assistant provides information such as store hours and available vehicle details and can provide consumers with vehicle recommendations. In the next couple of months, CarMax plans to roll out an updated version of Skye that will be more efficient, more accurate and more conversational and empathetic, he said, noting the current chatbot was based on traditional if-then logic. “What we’re experimenting with now is a conversational helper for the customer,” Anderson said. “It still requires customers to make decisions and take actions on their own. As we look further out, it’s around how we can weave in that next best action, not just recommendation making ... but take that action on [the consumers’] behalf.” The improvements on the customer and associate side are part of CarMax’s overall AI evolution, Anderson said. “AI doesn’t change anything about what we’re trying to do,” he said. “It’s another tool in the toolkit where we can tackle the business problems that we're trying to solve and make use of one of the competitive differentiators that we have, which is our data, our knowledge and expertise built up over decades.” CarMax’s retail sales rose 9% year over year in its fiscal first quarter to 230,210 units, according to the company’s June 20 earnings release. CarMax Auto Finance’s originations rose 2.3% YoY to $2.3 billion, while outstandings landed at $17.7 billion, up 1% YoY. Register here for “Digital strategies for exceptional customer experience,” a free Auto Finance News webinar set for Tuesday, July 15, at 11 a.m. ET.

CarMax to roll out updated AI chatbot tools

Retailer experimenting with ‘conversational helper for the customer’

Used-vehicle prices climb 6.3% YoY in June

GM Financial CEO Sheffield joins fireside chat at Auto Finance Summit 2025

Related Posts

FIS, Fuse partner on auto, equipment finance origination platform

Global Lending Services expanding dealer pricing tool

The tax return looked real; that was the point

Kunes Auto’s first CTO aims to unify auto, RV technology operations

GM Financial CEO Sheffield joins fireside chat at Auto Finance Summit 2025

Stay Informed with Our Newsletters

The Roadmap Podcast

SPONSORED

Why credit unions give dealers an edge in today’s auto market

Driving better decision-making across auto finance operations with SAS

Auto finance’s first line of defense: Raising the standard in integrated software partnerships and data strategy

Retrieve your password