Cognizant and Merchants Fleet expand AI collaboration to set new bar in fleet management efficiency

Cognizant Technology Solutions Corporation (Nasdaq: CTSH) has entered a new phase of strategic collaboration with Merchants Fleet, a leading U.S. fleet leasing and management provider, to drive operational transformation using artificial intelligence and automation. The expanded partnership, announced on December 3, 2025, aims to integrate AI-enabled platforms across Merchants Fleet’s sales, logistics, and customer service infrastructure—laying the groundwork for a scalable, future-ready digital core.

This move builds on an existing relationship between Cognizant and the Merchants Fleet information technology team. The latest phase focuses on deploying generative AI, predictive analytics, and automation-first workflows to create business agility and long-term efficiency. The initiative comes as the fleet management industry undergoes a broader shift away from siloed legacy systems toward integrated digital ecosystems that promise real-time visibility and customer-centric service delivery.

Cognizant will provide end-to-end modernization support across Merchants Fleet’s operational stack, enabling the logistics firm to improve turnaround times, resolve billing inefficiencies, and accelerate repair cycles. The engagement includes AI-powered knowledge management, scalable architecture, and predictive fleet analytics—all designed to meet the rising demands of both enterprise clients and fleet end-users.

What role does AI play in transforming fleet management strategy for Merchants Fleet?

Artificial intelligence is at the heart of this partnership, with Cognizant applying a transformation-first approach to overhaul Merchants Fleet’s operations. The digital modernization plan includes the adoption of generative AI to accelerate development cycles, predictive analytics for performance forecasting, and automation to reduce operational friction. This AI-centric strategy is aimed at tackling persistent challenges such as high maintenance latency, fragmented data visibility, and suboptimal vehicle utilization.

The inclusion of generative AI not only supports speed and efficiency but also enables Merchants Fleet to respond dynamically to customer needs. By automating core backend workflows, the company will be able to elevate client-facing services with faster processing times, smarter vehicle lifecycle management, and real-time engagement tools.

Matt Dyer, President and Chief Executive Officer of Merchants Fleet, stated that the collaboration is central to delivering higher quality outcomes for clients while enabling operational consistency. His comments reflect a broader strategic pivot toward customer-centric digital transformation across the transportation services landscape.

Why is this partnership aligned with broader digital transformation trends in transportation and logistics?

The transportation and logistics sector is undergoing rapid disruption, fueled by evolving client expectations, vehicle electrification, and the need for tighter supply chain visibility. Fleet management firms that once relied heavily on manual, reactive systems are now under pressure to modernize. For many, AI is becoming the catalyst for this transformation.

According to logistics sector analysts, players like Merchants Fleet are at the forefront of a movement to embed smart automation across vehicle tracking, repair management, and billing resolution workflows. This shift is driven by a growing awareness that operational agility and data intelligence are not merely nice-to-haves but are critical enablers of competitive differentiation.

Cognizant Executive Vice President Vijay Narayan, who leads the manufacturing, logistics, energy, and utilities business unit, described the partnership as a model for how digital innovation can drive sustainable growth. He emphasized that combining AI, domain-specific expertise, and scalable infrastructure is setting a new benchmark for operational excellence in fleet services.

How does the partnership strengthen Cognizant’s position in the fleet and mobility technology market?

For Cognizant, the expanded alliance with Merchants Fleet is part of a wider push into vertical-specific digital transformation services. The technology solutions provider has been increasingly active in sectors like mobility, transportation, and logistics, where demand for AI-enabled platforms is growing. This partnership not only extends Cognizant’s role in modernizing enterprise fleet infrastructure but also reinforces its ability to deliver industry-specific AI at scale.

The logistics and mobility segment is a key growth area for Cognizant, which has historically focused on financial services, healthcare, and manufacturing. This deal provides a flagship case for the company’s transformation-focused services in automotive leasing and fleet operations—sectors ripe for digitization but traditionally underserved by deep-tech transformation vendors.

Cognizant’s ability to integrate AI into legacy environments and provide outcome-driven solutions is now a clear differentiator in winning long-term, platform-led deals such as this.

What makes Merchants Fleet a first mover in tech-enabled fleet services?

Merchants Fleet has been recognized as a technology-forward player in the North American fleet market. With over six decades of experience, the firm offers both long-term and short-term fleet services and has invested heavily in fleet electrification, remarketing intelligence, and flexible leasing structures. Its Innovation Center in Chicago and corporate headquarters near Boston have served as hubs for testing and scaling advanced fleet technologies.

This partnership further cements Merchants Fleet’s positioning as an innovation leader. While many fleet providers are still in early stages of AI experimentation, Merchants is actively embedding automation into its customer lifecycle, back-end systems, and decision-making engines.

Its strategy includes building digital tools that reduce vehicle downtime, support fleet electrification, and provide clients with real-time data dashboards. The expanded Cognizant collaboration supports these goals with technology that is both modular and scalable, allowing for continuous innovation as the market evolves.

How does this collaboration address real-world operational pain points?

Fleet operators frequently grapple with high maintenance turnaround times, poor visibility into vehicle health, and fragmented customer support workflows. The collaboration with Cognizant directly addresses these issues by integrating AI to monitor vehicle telemetry, flag potential service events before they occur, and streamline the repair scheduling process.

The billing and payments side of fleet management is also notoriously complex. Automation-driven solutions will allow Merchants Fleet to reduce manual intervention in billing cycles, improve compliance across jurisdictions, and minimize invoice errors—all of which have a direct impact on client satisfaction and retention.

Additionally, by applying intelligent analytics to fleet performance data, Merchants Fleet gains better insights into utilization rates, driver behavior, and servicing patterns—allowing it to optimize its asset deployment and enhance return on investment.

What are analysts watching next for Cognizant and Merchants Fleet?

Industry analysts tracking Cognizant Technology Solutions Corporation view the partnership as a strong validation of its sector-led digital strategy, particularly at a time when revenue growth from core outsourcing segments has been tapering. While the firm has not disclosed deal size, the depth of the engagement suggests it could yield multi-year value, especially as Merchants Fleet continues scaling its digital ambitions.

For Merchants Fleet, investors and enterprise clients will be watching how quickly the AI-powered systems translate into improved operational metrics. Key areas of impact are likely to include reduced vehicle downtime, faster customer issue resolution, and increased EV fleet management capabilities.

The broader fleet industry may also view this deal as a blueprint. As economic uncertainty places greater focus on cost containment and service reliability, platform-led partnerships such as this will likely gain traction among mid- and large-sized operators seeking transformation at scale.

What are the key takeaways from the Cognizant–Merchants Fleet AI transformation partnership?

• Cognizant Technology Solutions Corporation has expanded its collaboration with Merchants Fleet to drive operational efficiency through AI-powered automation and predictive analytics.

• The partnership supports the modernization of sales, fleet operations, and customer service processes, using generative AI to accelerate development cycles and build a scalable digital infrastructure.

• Merchants Fleet is leveraging Cognizant’s domain expertise to address persistent industry challenges such as billing complexity, limited vehicle visibility, and repair turnaround delays.

• The initiative marks a shift in the fleet industry toward platform-based automation strategies, with Merchants Fleet positioning itself as a first mover in digital transformation.

• Analysts tracking the sector view this as a benchmark deal showcasing how AI can drive business agility, customer experience improvements, and cost optimization in logistics.

• Cognizant is using this engagement to deepen its footprint in transportation technology services, especially in high-growth areas like EV fleet management and mobility-as-a-service platforms.

• Merchants Fleet continues to enhance its leadership in North America by integrating real-time data analytics, customer engagement tools, and flexible service models supported by AI.

• Both companies aim to scale the collaboration to enable smarter maintenance cycles, automated workflows, and improved fleet performance visibility for clients.

• The deal underscores rising demand across the logistics industry for outcome-based digital transformation that aligns with operational agility and future-readiness.

• Future roadmap indicators suggest growing enterprise interest in modular, AI-first platforms that can support fleet electrification, real-time optimization, and seamless service delivery.