Sold-out CADEX event tackles AI, fraud and industry change

CADEX returned to Halifax with its largest audience ever, drawing more than 300 dealers, suppliers and industry leaders to Casino Nova Scotia for the sold-out 14th edition of the event organized by the Nova Scotia Automobile Dealers Association (NSADA).

With TD Auto Finance as exclusive sponsor and Canadian auto dealer Publisher Niel Hiscox serving as moderator, this year’s conference focused heavily on the forces rapidly reshaping automotive retail — including AI, Chinese OEMs, fraud prevention, cybersecurity, affordability pressures, technician shortages and dealership leadership.

John Sutherland, Executive Vice-President of the NSADA, said this year’s conference marked the largest attendance in the event’s history. “This is the biggest attendance ever,” said Sutherland. “We’re over 300 for sure.”

Opening the conference, dealer Kelly McCarron, Conference Committee Chair, reflected on the continued growth of the event over the past 14 years. “John Sutherland said there were 35 to 40 people in the room 14 years ago,” said McCarron. “We’re over 300 today.”

McCarron thanked sponsors and highlighted TD Auto Finance for its continued support of the conference. “It doesn’t happen without sponsorship,” said McCarron. “I’m going to single out TD Auto Finance because they really are the key sponsors making this all happen.”

Hiscox, returning as moderator for the 14th time, opened the event by framing the scale of change facing dealers. He discussed recent developments in artificial intelligence before shifting to how AI is already changing consumer behaviour in automotive retail.

Hiscox described using AI tools himself to shop for a used EV. Within minutes, the platform compared listings, analyzed dealer reputations, reviewed pricing across provinces and narrowed the search down to a shortlist of recommended vehicles and dealerships. “It reviewed every listing in Ontario and gave me all sorts of information,” said Hiscox.

The AI system ultimately recommended purchasing the vehicle in Quebec due to stronger inventory levels, lower pricing and greater selection. Hiscox said dealers need to recognize that AI is no longer simply a back-end operational tool — consumers are already using it to make highly informed purchase decisions before ever contacting a dealership.

“If we thought over the last 10 or 15 years the consumer was coming into the store knowing more than the product advisor,” said Hiscox, “that’s about to go on steroids.”

CADA’s First Vice-Chair Craig Dunn formally welcomed attendees on behalf of CADA. Dunn said dealers are operating in one of the most disruptive business environments the industry has seen in decades.

“Various political, technological and business disruptors are converging at the same time,” said Dunn. “For us dealers, it means that we have to keep on doing what we have always done best — adjust, adapt and evolve.”

CADA Chief Economist Charles Bernard and Huw Williams, CADA Public Affairs, delivered an economic and political update covering tariffs, affordability, EV mandates, technician shortages and the changing political landscape in Ottawa. Williams said the federal election and the arrival of Prime Minister Mark Carney significantly altered the environment in Ottawa.

“Ottawa is changing in a positive way for the business community,” said Williams.

Bernard said affordability remains the dominant issue influencing both governments and consumers. “Affordability is the word that’s on everybody’s mind,” said Bernard.

The pair also outlined CADA’s lobbying efforts surrounding EV mandates, competitiveness, tariffs and iZEV subsidy concerns. The technician shortage discussion generated strong reaction from dealers in attendance.

“At the end of the supply chain of cars, yes there’s a consumer,” said Bernard. “But then there’s another layer where we’ve got to fix those cars.”

Fraud prevention was another major theme during a fireside chat between Hiscox and Chris Schaufele, National Leader, Dealerships, MNP. Schaufele said fraud has become more sophisticated, more organized and more difficult to detect.

“Estimates put the potential loss from fraud at a Canadian dealership anywhere up to five per cent of annual revenue,” said Schaufele. “This is not an inconsequential problem.”

Schaufele said dealerships are seeing fraud across multiple departments, including sales, F&I, and parts and service, with fraudulent lending applications becoming increasingly common. He warned that AI has dramatically improved the quality of fraudulent documentation and phishing attempts.

“There was a time when there would be obvious spelling mistakes,” said Schaufele. “That’s simply not the case anymore.”

One of the most heavily discussed sessions of the day focused on China and the rapid growth of Chinese automakers. Bruce Rosen, Executive Director, Industry Affairs, CADA, joined local dealers Kelly McCarron and Michael MacGillivray to discuss their recent CADA China study tour.

The panel described massive factories, highly automated production facilities, autonomous technologies and what they viewed as a dramatically faster pace of innovation compared to North America. “The future’s over here,” said MacGillivray. “It feels about 10 years ahead.”

McCarron said the scale of the Chinese industry was difficult to comprehend. “The auto show that we were in was 1.8 kilometres to walk the length of the corridor,” said McCarron.

The group repeatedly emphasized the quality and sophistication of the vehicles they saw. “Everything I saw there could sell in Canada,” said McCarron.

Rosen said Chinese automakers are bringing vehicles to market at a pace rarely seen in North America and noted the country is producing far more vehicles than its domestic market can absorb. “These cars need to go somewhere,” said Rosen.

Artificial intelligence returned as a major topic during a moderated session featuring Hiscox, Rosen and Brian Abrams, VP, AI & Data Product Strategy, CDK Global. Rather than focusing on futuristic concepts, the discussion centred on practical dealership applications already being implemented.

Abrams said dealerships are struggling with bandwidth challenges across sales, BDC and service operations. He said AI-powered voice systems can now answer calls, gather information, engage customers in conversation and create follow-up opportunities.

“When it comes to consistency of customer experience, AI can craft a personalized message for them,” he said.

Rosen said dealers should focus first on solving practical business problems rather than becoming overwhelmed by the pace of technological change. “You need to get in it,” said Rosen. He also stressed that clean dealership data remains essential.

Trevor Longley, President, Stellantis Canada, participated in a fireside chat with Hiscox that continued a long-standing CADEX tradition of bringing OEM leadership to Atlantic Canada. Longley said the current automotive market remains highly volatile as dealers and OEMs navigate tariffs, affordability concerns, electrification and growing competition.

“It’s a very volatile environment,” said Longley. “Every time we think maybe we’ve got a view of where it’s going to go, it seems there’s a tweak or something else that changes all of it.”

Cybersecurity was another major topic during a presentation from Jennifer Hutton, Vice President, Information Technology and Risk and Chief Privacy Officer, Steele Auto Group. Hutton warned dealerships face growing exposure as operations become increasingly digital and interconnected.

The conference concluded with an emerging female leaders panel featuring Caroline Hickman, Alyse McCarron, Tammy Roach and Erin Dobson. The discussion focused heavily on staffing, technician shortages, profitability pressures and dealership culture.

“People keep me up at night,” said McCarron. “It goes further than just the employees themselves. It’s their families that rely on us to keep the doors open.”

To close the event, speaking on behalf of the event’s exclusive sponsor, Andy Wadeson, Vice-President, Sales and Distribution, TD Auto Finance, praised both the growth of the event and the willingness of dealers and industry leaders to openly share ideas and challenges.

“Relationships are truly at the heart of anything that we do,” said Wadeson. “Our passion is driven by the commitment to creating the best dealer financing experiences in the most human way possible.”

Wadeson also praised the evolution of the conference itself. “It gets better every year — the quality of the agenda, the quality of the speakers,” said Wadeson.

As the sessions wrapped up, attendees moved into the evening reception and gala dinner, closing out what many described as one of the strongest editions of CADEX yet. Across discussions on AI, affordability, fraud, cybersecurity, EVs and Chinese competition, one message surfaced repeatedly throughout the day: the pace of change in automotive retail is accelerating quickly, and dealers are determined to adapt alongside it.

About Todd Phillips

Todd Phillips is the editorial director of Universus Media Group Inc. and the editor of Canadian auto dealer magazine. Todd can be reached at tphillips@universusmedia.com.

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