“We’re moving into a world where the most valuable skill you can have is the ability to learn new skills.”

—Satya Nadella, CEO of Microsoft

Chatbots Double Down on False Facts

A recent study from NewsGuard shows that generative AI tools now repeat false information in 35% of cases, nearly double the 18% recorded in August 2024.

Non-response rates dropped from 31% to zero, so users are always getting an answer, but that doesn’t mean they’re accurate.

The Scorecard

The data shows that even the strongest models are not immune.

Claude produced false information in 10% of test cases, and Gemini in 16.67%. For comparison, Inflection’s model failed more than half the time at 56.67%. YIKES.

This variation underscores the importance of model selection, but also reinforces that no model eliminates the need for oversight.

Why Accuracy Has Declined

For one, the addition of real-time web search was meant to solve the “knowledge cutoff” problem. Instead, it exposed chatbots to polluted sources. Models now pull from AI-generated content farms, satirical or parody sites, and even coordinated propaganda networks.

On top of that, new research from OpenAI shows hallucinations are not just bugs but mathematically inevitable. Because chatbots predict words one at a time, small errors can easily compound into confident falsehoods, and the systems are often rewarded for guessing rather than admitting uncertainty.

Why Dealers Should Care

AI is still a powerful assistant, but one that occasionally adds fiction to the facts.

When teams use it, be sure there is a level of oversight included in their process. A quick fact-check can keep the benefits without letting errors slip into the wild.

If you are using AI tools for research, communication, or customer-facing content, you should always verify what comes back. A quick prompt like this helps surface the facts and keeps bad info from slipping into your workflow.

• Management & Operations: Skippership
  Analyzes how visitors interact with your dealership website and highlights where they tend to drop off. The platform provides insights you can use to adjust site design and improve customer conversions.
   

• Finance & Insurance: Neo360
  Provides an AI-powered software suite for BHPH and used car dealerships, combining CRM tools, applicant scoring, and customer management in one platform. Helps dealers identify strong applicants quickly, reduce risk in financing, and streamline day-to-day operations.
   

• Content Creation: Udio
  Allows users to create original music tracks by entering simple text prompts such as themes, genres, or lyrics. Useful for dealerships looking to generate custom audio for marketing, events, or social content without needing in-house production resources.

Employees are more and more frequently leaning on ChatGPT to move faster at work, which means your store could be at risk if you don’t have the proper policies in place.

From customer data uploads to vendor contracts that give away more than you realize, Tyler Raquet joined us at NAMAD 2025 to share why even small shortcuts with AI can snowball into serious compliance risks.

Watch the full interview here.

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