For over two decades, the Finance & Insurance (F&I) office has been the profit epicenter of most dealerships. And yet, despite massive changes in consumer expectations and digital retailing, the traditional F&I process remains largely untouched. While AI tools are being piloted in sales and BDCs, “the box” is still running on static menus, fixed pricing, and gut feel.
That’s about to change and dealerships that embrace intelligent automation will outperform those that don’t.
From Gut Instinct to Smart, Scalable F&I
The reality today? Most F&I managers are working hard but not smart, not because they don’t want to, but because they lack the tools. Static product menus, little personalization, and no behavioral targeting mean inconsistent penetration and uneven profitability.
AI isn’t here to eliminate the human touch in F&I. It’s here to amplify it, helping every manager, from rookie to veteran, perform like the top 10%.
How AI Will Actually Improve F&I (Not Replace It)
Here’s how artificial intelligence is reshaping the F&I landscape right now and how our own DecisioningIT ecosystem is leading that transformation:
🔹 Personalized Product Menus
AI enables real-time, data-driven menu generation based on key variables like:
- Credit score & finance structure
- Vehicle use case (urban vs. rural driving)
- Prior protection history
- Service and claims records
For example, a returning lease customer with a past tire-and-wheel claim and a history of declining GAP may be served a tailored menu that emphasizes wear-and-tear coverage and prepaid maintenance instead.
🔹 Dynamic Product Pricing
Rather than applying a one-size-fits-all markup, AI can learn from accept/decline trends across thousands of transactions to optimize pricing and presentation sequencing. Think of it like a real-time feedback loop for maximizing value alignment.
🔹 Built-In Compliance Checks
AI doesn’t just help sell smarter, it helps sell safer. By monitoring presentations (recorded or in real time), intelligent systems can ensure disclosures are delivered properly, flag potential issues, and provide audit trails, helping mitigate compliance risk.
🔹 Intelligent Post-Sale Follow-Ups
The conversation doesn’t end when a customer declines in the box. AI can schedule timed follow-ups, for example 60 days before factory warranty expiration, to reintroduce a VSC or maintenance product when it’s most relevant.
Where to Start: Practical Steps for Dealerships
Dealerships don’t need to rip and replace to benefit from AI. Small wins can compound quickly. Here’s how to begin:
- Analyze historical F&I transactions
Use pattern recognition to identify which products sell best by segment, vehicle class, or mileage band. - Automate follow-ups for declined products
Tools like DecisioningIT’s smart follow-up module allow automated texts or emails tied to mileage or service events. - Pilot conversation guidance tools
Leverage AI-powered prompts during presentations to reinforce compliance and build confidence for less experienced managers.
The Human Element Still Reigns
F&I has always been about trust. That doesn’t change. What changes is how F&I managers prepare, how they personalize, and how they position the right product for the right buyer, at the right moment.
The best dealerships won’t wait for perfect solutions. They’ll start now, lift their floor, and raise their ceiling with AI-driven consistency.
At DecisioningIT, we’re committed to building intelligent tools that empower F&I professionals, not replace them. AI isn’t the future of F&I… it’s the present. And the winners will be those who act.
Adapted with insights from a June 2025 commentary by Todd Smith of QoreAI.
Original article: “COMMENTARY: AI is coming to F&I, and here’s how dealers can win” – Auto Remarketing, June 23, 2025.
