From Compliance to Competitive Edge: Why Responsible AI Matters to Your Dealership

In our recent webinar, From Compliance to Competitive Edge: Why Responsible AI Matters to Your Dealership, Deepak Singh, Associate General Counsel and Data Privacy Officer at Tekion, and Teza Mukkavilli, Chief Information Officer and Chief Information Security Officer at Tekion, explored how dealerships can turn AI governance from a compliance requirement into a powerful business advantage.

The conversation unpacked the opportunities, risks, and responsibilities that come with adopting AI—and what every dealer should know to protect their business while staying ahead of the curve.

AI in Automotive Retail: Opportunities and Risks 

AI is reshaping every part of automotive retail—from customer engagement to inventory management. However, as Deepak noted, dealerships are at a “critical crossroads.” 

While AI can improve efficiency, profitability, and customer experience, it also introduces new risks, such as AI-generated fraud, synthetic identities, and data scraping. 

“Your trust becomes your new currency for a lot of your AI models.” 

— Teza Mukkavilli 

During the live poll, most attendees reported feeling only “somewhat confident” in managing these new risks—underscoring the growing need for transparency and trust in AI-driven operations.

Why Responsible AI Matters 

Teza and Deepak emphasized that trust and transparency are the foundations of AI success. Responsible AI isn’t just about compliance—it’s about creating consistent, explainable, and fair outcomes for both dealers and customers. 

“Responsible AI implementation can transform a business from a compliance necessity to a genuine competitive advantage.” 

— Deepak Singh 

A responsible framework ensures that: 

• Dealership and customer data remain secure and anonymized.

• Every AI model has a clear owner and audit trail.

• Predictions are explainable, unbiased, and accurate.

Tekion’s Approach to Responsible AI 

At Tekion, responsible AI is built into the foundation of our platform. 

• Transparency: Every AI outcome is explainable and documented 

• Fairness: Models are trained to reduce bias and improve accuracy 

• Privacy: Data is anonymized and protected through consent-based learning 

• Accountability: Every AI model has a defined owner and traceable history 

“Every AI outcome should be explainable. We document what data the model uses, what assumptions it makes, and why it produces a certain output.” 

— Teza Mukkavilli 

Key Takeaways: Responsible AI as a Competitive Advantage 

• AI adoption is accelerating, but governance is critical to long-term success.

• Trust is the new currency—transparency builds confidence with customers and regulators. 

• Due diligence is essential—know how your vendors handle data and compliance.

• Responsible AI transforms compliance into measurable business value.

“It’s almost like—do you want AI, or do you want a better integrated AI framework?” 

— Teza Mukkavilli 

Watch the webinar on-demand to hear the full discussion—or visit Tekion's Trust Portal to learn how our Responsible AI framework helps dealerships innovate securely, confidently, and responsibly.