In the words of professional wrestler, Triple-H, “In life, you either adapt or you perish. That is evolution.” This quote doesn’t just relate to professional wrestling, but to the automotive industry as well. The recent rise in electric vehicles and artificial intelligence in cars has forced auto companies to adapt to modern times.
Since 2008, Big Valley Auto Auction has been a dealer-only auto auction in South Texas. We’ve seen the evolution of the auto industry, which is why we want to keep you informed.
In this article, you’re going to learn 5 ways auto auctions can use AI in their business and the benefits that come with it.
After reading this article, you’ll have the information needed to decide if using AI for your business is right for you.
How Can Auto Auctions Use AI?
Multiple industries have implemented the use of artificial intelligence in their business models. And as AI continues to grow in the auto industry, auto auctions need to stay up to date. Here are 5 ways auto auctions can use AI for their business:
- Demand prediction
- Pricing
- Inspections
- Fraud detection and prevention
- Personalized recommendations
Demand Prediction
Auto auctions can use smart computer programs to look at past sales info, what types of vehicles people are buying, and how the economy is doing. This helps auto auctions keep their dealers informed on what vehicles are in high demand, so they can adjust their inventory.
Pricing
AI-powered pricing algorithms can adjust vehicle prices in real-time, based on factors such as market demand, vehicle condition, and competitor pricing. This enables auto auctions to maximize revenue by setting optimal prices that reflect the current market conditions.
Turing AI Services is an AI-powered pricing tool used by businesses to determine historical pricing data, current market demand, similar product pricing, and competitor pricing data to give you the most accurate price on your inventory.
Condition Reports
AI inspection tools can analyze images and videos of vehicles to check their condition and identify any damages or defects. Auto auction staff capture images of a vehicle's exterior and interior using smartphones. AI-powered image recognition software automatically analyzes these images to identify any damages or defects, such as dents or scratches. The system flags these issues for further inspection by auction inspectors before listing the vehicle for auction. This can simplify the vehicle inspection process, reduce human error, and ensure consistent and accurate evaluations of each vehicle's condition before listing it for auction.
Proovstation is an AI powered inspection scanner that can retrieve vehicle information, tire information, and create a damage list.
Fraud Detection and Prevention
AI algorithms can analyze transaction data and buyer behavior patterns to detect and prevent fraudulent activities, such as bid manipulation, payment fraud, and identity theft. By continuously monitoring transactions in real-time and flagging suspicious behavior, auto auction companies can protect both buyers and sellers from potential fraud.
Personalized Recommendations
AI-powered recommendation engines can analyze buyer preferences, browsing history, and past purchases to suggest relevant vehicles that match their interests. For example, if a buyer frequently views listings for pickup trucks, the system recommends similar vehicles. By providing personalized recommendations, auto auctions can enhance the buying experience, increase customer engagement, and encourage repeat business.
Can Auto Auctions Benefit From AI?
Just as people need to adapt to survive, so do businesses in the automotive industry. Failing to adapt may cause your business to fall behind your competitors who do adapt. Knowing how to keep up with new technologies and using them to your advantage is a great way to keep your business ahead of the competition.
If you’re an auto auction owner who’s thinking about upgrading your business model, you can use this article as a reference to help you decide if implementing AI in your auction services is worth the investment.
In the meantime, if you’re a dealer looking for an auto auction to buy or sell vehicles, you can click the button below to speak with our dealer registration specialist to get you registered with Big Valley Auto Auction.
Not ready to talk? That’s okay! First, learn more about what it’s like to buy and sell at Big Valley Auto Auction by clicking the image below:
