CarMax leans on AI, tech investments to trim $150M in costs

Core Insights - CarMax is focusing on cost savings and technology initiatives following a challenging quarter, with total sales declining by 6% and unit sales dropping by 5.4% year-over-year [3][4] - The company aims to drive sales, gain market share, and achieve significant year-over-year earnings growth despite current market pressures [4] Technology and AI Integration - CarMax is leveraging AI technologies across various use cases, including customer support and predictive maintenance, after strengthening its IT and data foundation [5][6] - The company has deployed Microsoft's 365 Copilot and other AI coding applications to enhance employee efficiency [6] Financial Projections and Cost Savings - CarMax anticipates that its AI and technology investments will yield at least $150 million in cost savings over the next 18 months [7] - Current AI projects are aimed at enhancing customer experience and improving operational efficiency, with specific initiatives like the AI-powered virtual assistant Skye [7] - Investments in technology are expected to help retire legacy systems and reduce licensing costs, with some savings being redirected to sales-related investments [7]