How to Train Your Dealership Teams on Maintaining AI Security and Privacy

Artificial intelligence (AI) is quickly becoming a core part of car dealership operations with hybrid human/AI teams expected to become the norm in the very near future. AI offers powerful benefits, but it also introduces new security and privacy challenges, especially when it comes to sensitive customer data.

Successfully leveraging AI means more than just deploying technology; it requires well-trained, security-conscious staff who understand how to use AI tools safely and protect customer data. Here’s how car dealerships can build effective training programs that equip employees to handle AI security and privacy confidently and compliantly.

1. Create Clear, Role-Specific Security and Privacy Policies

A strong foundation starts with written rules. Every employee should have a clear understanding of what’s expected when interacting with AI platforms.

Develop written policies that:

• Define what types of customer and internal data can be entered into AI tools.
• Outline proper handling and storage procedures for sensitive information.
• Explain consequences for policy violations.

Policy must clearly state that employees are only permitted to use approved, dealership-vetted AI platforms. Staff must be educated on the risks of using “Shadow AI” (unauthorized public tools) for work tasks, as this can inadvertently expose sensitive customer and proprietary business data to external, unsecured systems.

It’s crucial to tailor these guidelines to specific roles, such as sales, service, finance, and IT, so all team members know their precise part in maintaining security and privacy.

2. Host Engaging and Interactive Training Sessions

Effective education goes beyond passive reading. Your training sessions should actively engage staff to ensure the knowledge sticks. Employees need to be taught that AI models can “hallucinate” and present incorrect information as fact. Training should focus on how to verify all AI-generated content (especially in contracts, disclosures, and communications) against official dealership documents and real data. This is crucial for maintaining both compliance and customer trust.

Training should focus on:

• Explaining AI basics and related security/privacy risks in straightforward language.
• Incorporating quizzes, role-playing, or hands-on exercises to boost retention.

Regular refreshers are a must. They keep skills sharp as AI tools and the threat landscape evolve.

3. Emphasize Privacy Regulations and the Impact of Non-Compliance

Security isn’t just about protecting the business; it’s about obeying the law. Make sure your team understands relevant privacy laws, like the California Consumer Privacy Act (CCPA) or GDPR, and the stakes involved.

Employees should know that mishandling AI tools can lead to data breaches, damage customer trust, and expose the dealership to significant fines or legal action. Understanding the why behind the rules drives better compliance.

4. Foster a Culture of Vigilance and Reporting

Your team is your first line of defense. Encourage open communication and the quick reporting of suspicious activity, accidental data exposure, or unusual tool behavior.

• Provide clear channels for staff to escalate concerns internally.
• Ensure they know how to contact your AI platform’s security support team when necessary.

A non-punitive, supportive culture is key to making sure employees report problems immediately, rather than trying to hide them.

5. Use Visual Aids and Quick Reference Resources

Keep security top of mind by distributing cheat sheets, posters, or digital guides that summarize key practices.

These resources should include immediate tips like:

• What kinds of customer data should never be entered into AI tools.
  • This list includes, but is not limited to: full VINs, customer Social Security Numbers, credit scores, loan amounts, and precise service or warranty claim details.
• How to securely log out and manage credentials.
• Who to contact with questions or incidents.

6. Simulate Phishing and Social Engineering Scenarios

The best way to prepare for an attack is to practice. Regularly run controlled simulations that mimic attempts to trick employees into revealing customer info or bypassing AI security controls.

Use the results as learning opportunities, reinforcing best practices without punitive measures. This makes security concrete and memorable.

7. Leverage Vendor Training and Resources

Don’t reinvent the wheel. Many AI solution providers offer ready-made training materials, webinars, and security best practices. Incorporate these expert resources into your in-house program to cover vendor-specific nuances and keep your team well-informed on the tools they use every day.

8. Measure Effectiveness and Adapt

Training is an ongoing process, not a one-time event. Track training completion, quiz scores, and the frequency of security incidents related to AI usage.

Use this data to continuously improve content, focus areas, and delivery methods that resonate best with your staff. The goal is continuous improvement of your team’s readiness.

9. Establish a “Human-in-the-Loop” Policy 

AI is a powerful assistant, but it is not a replacement for professional judgment. Dealerships must establish the “Human-in-the-Loop” principle, meaning a qualified employee must review and validate any critical, customer-facing, or financially significant output generated by an AI tool before it is used. This is essential to catch costly errors, prevent inaccurate pricing quotes, and ensure all communications comply with legal and brand standards. 

Conclusion

AI will only become more embedded in dealership workflows, making it critical for staff to be trained thoroughly on security and privacy.

By combining clear policies, interactive education, regulatory awareness, ongoing reinforcement, and a supportive reporting culture, dealerships empower their teams to use AI responsibly, protecting both customer trust and business integrity.