The spurt of European car auctions benefits from the artificial intelligence solution created by Lithuanians - Altic

The spurt of European car auctions benefits from the artificial intelligence solution created by Lithuanians

Solutions based on artificial intelligence will make the car sales at auctions much more efficient for Exleasingcar both in Lithuania and abroad. This is a win for all auction participants. According to the IT innovators at Alantic, the artificial intelligence model being developed is similar to the model created by the US scientists who have been awarded the Nobel Prize by the Swedish Science Council. This model will ensure a breakthrough in auctions. ‘This is a multi-stage project, where the first steps are made in data selection, correlations, and building insight models to further develop and adapt the decision-making models of artificial intelligence to other needs,’ says Marijus Strončikas, the representative of Alantic, outlining the first steps of the project.

According to Strončikas, the correlations that are implemented based on the analysis of Exleasingcar data will help form artificial intelligence (AI) algorithms that should predict consumer behaviour and their needs and expectations related to the desired, or required, car, as well as perform multi-stage analysis of predicted purchases and cost-effectiveness. Moreover, the AI should manage the process of selling the vehicle at the auction all by itself.

‘It will be possible to make the buying and selling process fully automated and autonomous, thus avoiding the human factor,’ he says.

Lithuanian Alantic has chosen Microsoft’s Azure virtual servers and other Microsoft tools to develop the AI. These tools enable them to create, develop, and apply artificial learning models in business.

‘Fast and accurate transactions and the optimal selection of buyers and sellers are tasks that prove to be difficult for any auctioneers. With the help of artificial intelligence, we can complete these tasks much more efficiently, which will allow our company to significantly increase sales conversion. The new system will enable the buyer and the seller to capture the essence in the abundant data in the shortest possible time and find the most optimal solution for the purchase and sale transaction,’ says Jaunius Barkauskas, the representative of the company Exleasingcar.

According to Barkauskas, the sales process at the auction must be very dynamic – prices, supply, demand, and expectations all change extremely quickly. Therefore, decisions must be fast and accurate. The systems used in the market are often seen to slow down the process and complicate decision-making due to the limited human and system functionality. The traders expect to eliminate all these limitations with the help of AI.

‘Sellers at the auction aim to make quick sales at a fair price, and the buyers look for a reliable product at a fair price as well. Except that the fair price is not necessarily the same for both parties, and someone must come to a decision. In many cases, the decision must be quick and free of any errors. In difficult cases, such a decision can take time because a poor transaction can be very expensive and no one wants slip up,’ Barkauskas explains the decision to employ the help of AI.

According to Barkauskas, artificial intelligence can significantly improve the auction sales process by offering solutions based on mathematical models. As a result, the whole process can be significantly faster due to the elimination of human errors and its ability to efficiently process massive amounts of data every day.

The AI will also create space for vehicle selection and negotiation engines that will enable the grouping of vehicles for more efficient sales. It will also aid in the processes of assessing the price of the car for sale and customer interest, initiating price negotiations, materialising the transactions based on the consumer behaviour predictions and previous sales experience.

‘At this stage, we are already completing the collection of all data, their processing, and the preparation for the algorithm application. Afterwards, we will move on to the next phase, i.e., their application to artificial intelligence,’ says Martynas Arėška.

According to Arėška, the programming work involving the development of the final AI tool and the integration of data into the platform is performed separately and only after confirming the hypotheses and determining the practical accuracy of the artificial intelligence algorithms.

The development and implementation of the AI system at Exleasingcar’s auctions is expected to take approximately another 9 months. A working group of five IT innovators is involved in the development and implementation of this project.

UAB Exleasingcar trades in cars in 6 countries. The company belongs to the Elca Holding company group and it is a member of the association CARA.

UAB Alantic specialises in IT innovations. The company has 15 specialists, and its clients include Modus Group, Mitnija, Kemi, Concretus Group, Optikos Pasaulis, and other Lithuanian companies.

 

03 05 2021

 

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