CarMax Puts AI at Center of Used-Car Strategy

CarMax, one of the largest U.S. used-car retailers, is making technology a central part of its effort to modernize a market still burdened by fragmented inventory, uncertain pricing and lengthy transactions. New Chief Executive Keith Barr has identified software, data and artificial intelligence as strategic priorities, aiming to make the journey from vehicle search and appraisal to financing and purchase more seamless across digital channels and physical stores.

The company plans to use AI to improve the matching of shoppers with available vehicles, sharpen pricing decisions and deliver more personalized experiences online and in stores. CarMax says the initiative should reduce friction for both buyers and sellers and speed up purchasing decisions. It has not disclosed an investment amount, deployment date or quantified financial target, leaving execution and measurable gains as key issues for investors to monitor.