Artificial Intelligence is not a buzzword

AI- Artificial Intelligence

It is obvious now that the overall theme at the upcoming NADA show is going to be AI. Like most of you I have already read many takes on what it means, how it will be used and who will benefit from applications that are supported by it. There is a possibility that it can become a topic du jour with people who were talking about mystery shops and other topics latching on to this as yet another way to position themselves as “experts” on its use, even though you cannot find any examples of their expertise at all in their background, it then becomes yet another echo chamber with buzzwords and broad brushing. This dilutes the experience, and dims the possibilities afforded the industry by the emergence of this technology.

The definition of AI is “a field of computer science that gives computers the ability to perform tasks that usually require human intelligence.” The definition is important with all the hyperbolic nonsense that we will inevitably hear in the coming weeks. That way we can collectively separate the benefits from the sales pitch.

The reality is artificial intelligence has been around for a long time, and I have had conversations with many across industry about the short- and long-term benefits of machine learning and the continuous and exponential growth in technology that enables machines to learn more quickly which eclipses Moore’s law in velocity.

In fact, most agree with quantum computing Moore’s law, which projected a doubling in efficiency of processors and the associated applications every two years is now woefully inadequate. There simply a great deal more processing power than most could have envisioned in 1965 when Gordon Moore initially introduced the theory.

I can geek out on this all day but to net it out, AI is simply computers gaining enough processing power to match the most sophisticated processor in existence, the human mind.

What does this really mean?

The automotive industry is a beast which requires a huge multitude of tasks, many of which are repetitive, to exist. It simply runs on the fuel of activities with the best operators able to manage these activities efficiently and effectively. In short it means focusing effort where it can do the best and deliver the best results. It is the perfect space for AI to thrive and it is also where we can get caught up in capability while losing site of applicability.

This is where the confusion and apprehension begin, with so many businesses relying on the above-mentioned activities to succeed and many who perform these activities relying on their necessity for employment. There is doubt that machines can perform these tasks and concern that if AI is efficient, the jobs for these tasks might become obsolete. The hard truth here is that AI has proven to be more efficient when performing these tasks and yes, some traditional roles in this business will no longer be necessary. AI does not need any time off, the effort of AI will be more efficient. This is what some fear but what about the opportunity?

The application of AI to replace repetitive tasks is unavoidable. It simply makes sense, and it will change the face of our industry forever. Whether it is positive, or a not positive change is a matter of perspective, with a caveat being that whether we like it or not, these changes are happening right now and will continue.

How do we embrace artificial intelligence and make it work for us? With my time with Deloitte, I learned an awful lot about what the impact of artificial intelligence would look like seven years ago and remarkably most of what I learned has happened. The initial uses are commonplace now and the longer-term benefits will show up across our lives.

With the focus on the automotive space I would say that the best possible use for AI is to leverage the capabilities to effectively match the experience businesses deliver with the experiences customer’s (and users) expect. There has been a gap between expectation and reality for generations in customer experience which is interesting when you consider that most of us can define a good experience when we have one but falter in delivering it consistently. The introduction of machine learning now allows the consistent identification of what a good experience is versus what an unsatisfactory one is, this is done without bias and without emotion making the successful delivery of an optimal customer experience not only possible but likely.

It is not necessary to replace a human experience with a machine, in fact most still want to interact with another human for a number of engagements, it is a leap forward though to measure the experience of every single engagement and allowing practitioners to adjust and to align with the expectations of a customer while leaving the transactional engagements to an AI agent who can? efficiently manage them.

There are countless ways we can all use artificial intelligence to improve how we operate across the entire relationship “journey” from customer acquisition to the numerous connections made throughout vehicle ownership AI can facilitate and support the delivery of an efficient and tailored experience to a higher percentage of customers consistently.

If you are visiting the trade show I suggest learning what you can about artificial intelligence and quantum computing, you don’t have to be an expert, but it will help you to discern what is useful to you and what is not, it also makes you less susceptible to a random sale pitch. There is a ton of information available on the subject. Here is a site that is less geeky than most: https://www.techtarget.com/searchenterpriseai/definition/AI-Artificial-Intelligence

But there are several quick reads on the topic.

I would also suggest understanding how the applications and/or software you are considering uses artificial intelligence some are created to replace repetitive tasks such as vehicle service updates and appointment setting, while others help users manage what they do more efficiently by modeling behavior without opinion. The third is where AI can initiate transactional conversations and seamlessly move the engagement to a human when necessary while also measuring the quality of the experience once the transition is complete.

How your business uses AI powered software is always up to you and going in with a plan helps to get the most out of this time and the tools available. We all remember the statement “if it is too good to be true it probably is” this really no longer applies in many cases as the level of innovation is staggering, it is incumbent on us all to do our homework though, so we select the product that best serves our needs.

Here are a few suggested steps:

F- face the fact that artificial intelligence is here to stay learn about it, embrace it and be clear eyed in the impact it will have on our industry now and into the future.

E- embrace this technology and apply it the way you choose enabling its use to support your business challenges. This technology is not going away so ride the wave instead of swimming against the inevitable current.

A – apply the technology and use it, the worst thing to do with tools acquired to help business is to leave them on the shelf, dig in, get your hands dirty, the application of this software is iterative, but it must be used to be effective.

R – repeat the above, the use of AI is not a “set it and forget it” behavior, with the rapid change there are significant leaps in capability, and this will require all of us to keep up.

?

?

?

?

?