Leveraging AI to disrupt the automotive customer experience
The way we move through the world is fundamentally changing. Yet, the automotive industry has not fully harnessed the potential of digitalization, big data, and AI to transform the automotive retail and car ownership experience. The pioneers that tap into this potential will create a long-lasting competitive advantage in the industry.
Personalizing the customer experience using AI and big data
The automotive industry is facing major digital disruption. AI can be used for a range of applications in the automotive field, including engineering, production, supply chain management, fleet management, mobility, and improving the overall customer experience.
The car buying process and the obligations of ownership have been burdensome for consumers for a long time. More recently, consumer needs and expectations have also started to shift. We are moving into an era where transportation is multi-modular and no longer just about cars. Consumers today care about how efficiently and effectively they get from point A to point B. The mode of transportation is often secondary.
As mobility becomes increasingly multi-modular, car companies are in a unique position because they can utilize on-line and off-line customer data. Companies that adopt an AI-driven strategy will be able to accurately predict individual consumer needs, setting them apart from competitors. They will deliver a superior customer experience overall, gaining a sustainable competitive advantage.
Transitioning to an AI-driven business strategy
According to Mckinsey, by 2025, the value potential of AI will amount to USD 215 billion across the automotive value chain. Moreover, according to a survey conducted by Accenture, 84% of executives believe they won't achieve their growth objectives unless they scale AI. AI can substantially reduce costs, generate revenue, and provide a superior customer experience.
This is a trend we have seen in many other industries, which have transitioned to a digital core, in which AI drives fundamental aspects of the business. AI recommends the songs we listen to on Spotify, sets prices for our airplane tickets, and drives the approval process for loans at digital financial services providers.
Automotive companies are starting to see the power of AI and how it can transform the customer experience. AI has the potential to recommend optimal modes of transportation, taking into account key factors, such as time and cost. It can also provide consumers with personalized ownership or usage models, depending on individual needs. In addition, companies can use AI to optimize their fleet utilization and management, driving efficiency, and profitability. These are just a few examples of how AI can transform the automotive retail experience and secure a competitive advantage.
Implementing AI doesn't provide immediate returns. It requires a long-term perspective. To stay competitive, automotive companies need to fundamentally rethink the customer experience. Only technology can enable this much-needed shift to customer-centricity.
Demystifying AI
AI can drive mobility businesses in a range of ways. In its basic form, AI can drive data-based decision making. Initially, data must be gathered and cleaned in a manner that is systematic and scalable. The results require the right data, which still calls for human intelligence. This is critical because if data is biased, the results can also be skewed and biased. After the data is cleaned, algorithms are trained to create predictions about future states. These predictions are then evaluated against test data. Feedback loops automatically train new versions of the model to ensure that they are having the intended impact.
These processes must be automated and embedded within an organization to drive long-term, sustainable, and profitable growth. The AI strategy and models should also integrate ecosystem partners. Full integration will give customers the products and services they need across the entire user experience, while also unlocking supply and demand.
Creating a sustainable competitive advantage
AI needs a large amount of data to drive outcomes that deliver accurate results. Because of this, first movers have a remarkable advantage in generating results that drive exponential growth. At otoz, we use AI to enable automotive companies to put their customers first and shift from a product-centric approach to a customer-centric strategy. Companies that make AI an integral part of their core strategy gain opportunities to delight customers, drive utilization, and secure their future in the rapidly changing automotive world.