Artificial intelligence is being used to make car buying better

We were all presented with suggestions for digital posts and ads. Google “best carry-on luggage” and you’ll have brands like Monos, Solgaard and Away in your Instagram feed in minutes. Suggest to your husband in a dinner conversation that he should start researching new sofas, and suddenly all you see on the Internet are pop-up ads from Wayfair, Pottery Barn, and Crate & Barrel.

The way these posts are presented to you is changing thanks to artificial intelligence (AI), which enables more personalized targeting of advertisers and prospects.

The automotive industry is using AI at all levels, from suppliers to automakers to car dealers. Cognizant, a technology company, is working with the industry to transform the way they do business using AI.

Aditya Pathak, vice president and head of automotive, transportation and logistics at Cognizant, said Newsweek that the company takes a comprehensive approach to brand interactions when working with customers, from identifiability to the shopping experience. “There’s a dealer experience, there’s a pre-dealer experience, there’s a post-dealer experience, and all of that together really shapes the brand perception of an automaker,” he said.

In the United States, buyers in the market are served primarily through their dealers. Car manufacturers’ websites are designed to direct potential buyers to these dealers. It is then up to the dealer to complete the sale. Using generative AI (GenAI), this process can adapt to consumer behavior more closely than before, while giving automakers and dealers a better chance of closing deals.

It takes 15 critical hours to make a decision

According to Pathak, consumers spend an average of 15 hours researching, test driving, and finalizing the sale of a new vehicle. About 60 percent of this process is completed online. AI helps companies build brand and vehicle awareness early in the process.

“If you’re a brand owner, your job and your focus is really to make sure your brand is considered. What this now means is that brands want to find out who the real consumers are at this point in time. They show a high level of purchase intent and are able to accurately identify them based on their search patterns and their comparisons to the websites they visit. Pathak said.

He explained that AI plays a “crucial role” during these 15 hours, with the aim of making it “easier and smoother” for everyone involved.

“Until now, personalization of customer campaigns in the automotive industry has been limited by static algorithm-based segmentation on a limited data set and the complexity of managing engagement for each segment. GenAI ushers in a whole new era of micro-personalization. This is now possible.” Leveraging thousands of different data points about the customer to micro-personalize content, images and videos in multiple languages ​​at the individual level, leveraging real-time insights into shopper behavior across the brand website, search engines, social media and the customer Profile information already with “This level of micro-personalization extends to recommendations for customizing the car’s features and accessories, as well as financial offers and incentives that can maximize the customer’s chances of purchasing,” said Pathak.

This plays a role in the way advertising is presented to customers. With AI doing the heavy lifting, automakers and dealers are able to tailor ads to match search terms and viewing patterns of potential new car buyers.

For example, if you live in the Rust Belt and are looking for family SUVs, you’re more likely to see ads for four-wheel drive models. If there are a high number of Nissans in your zip code, a four-wheel drive Nissan may appear more often in your social media feed with information about the dealer in your area.

The traditional approach to car sales is dead

Gone are the days when retailers put the seller first. Using technology, dealers are able to connect with potential customers online, and when they visit a dealership, they can use self-service kiosks and displays to explore a vehicle without a salesperson following behind them.

“If you look at what buyers hate most about the buying experience, it’s actually the interaction with the salesperson at the dealership. So now you’re actually able to simplify that interaction and really empower shoppers to search and explore on their own,” Pathak said.

Large-format displays and kiosks allow customers to explore vehicle options themselves. You can also get answers from them about features and performance and even do a comparison. In turn, data about what customers view, explore and ask for can be used to better make decisions by automakers and dealers.

When the customer is ready to purchase, merchants can make an offer more specific to the potential buyer’s desires based on AI-captured data.

Protection for consumers

Some protective measures are integrated for consumers. “Typically all of these things are not personal data, but they are clearly identifiable, not at an individual level but at a cohort level,” Pathak said.

Marketers can know where you browse from and what internet service provider you have. A dealer could receive alerts when customers search for specific vehicle features in their area and can adjust marketing campaigns and inventory levels accordingly.

“They are able to identify groups, but they are not able to identify individuals at an individual level unless and until you consent,” he said. For example, if an individual is logged into a website on which you have created an account, they will be identifiable to some extent, depending on the terms and conditions of that website.