Can Artificial Intelligence Help Used-Car Dealers Survive in a Data-Driven Used-Car Market?
Journal
17th International Conference on Design Science Research in Information Systems and Technology, DESRIST 2022 St Petersburg, FL, USA, June 1–3, 2022, Proceedings
ISSN
0302-9743
ISSN-Digital
1611-3349
Type
conference paper
Date Issued
2022
Author(s)
Editor(s)
Andreas Drechsler
Aurona Gerber
Alan Hevner
Abstract
The used-car market is notoriously untrustworthy and shady. Certified
data has been shown to help mitigate the information asymmetry, one of the major
factors to an untrustworthy market. In recent times, more and more used-car dealers
have had problems surviving in this competitive data-driven market. In this study,
we conduct 12 interviews with used-car dealers and several meetings and workshops
with employees and executives from the AMAG Group, one of the largest
automotive companies in Switzerland. This creates insight into current problems
for used-car dealers and how artificial intelligence can help. The problems can be
abstracted to the problem of high transaction cost and its subcategories. In reducing
transaction costs by utilizing artificial intelligence, new secondary problems
arise. People need to trust the certificate, the analytics, and the predictions. Additionally,
the data and analytics need to be transparent and understandable, and
privacy concerns must be addressed. The implications of this study are manifold.
First, we define the problems for used-car dealers on the used-car market and introduce
artificial intelligence approaches to the current data-driven used-car market.
Afterward, we stress that artificial intelligence needs to follow a human-centered
perspective and be designed for trust.
data has been shown to help mitigate the information asymmetry, one of the major
factors to an untrustworthy market. In recent times, more and more used-car dealers
have had problems surviving in this competitive data-driven market. In this study,
we conduct 12 interviews with used-car dealers and several meetings and workshops
with employees and executives from the AMAG Group, one of the largest
automotive companies in Switzerland. This creates insight into current problems
for used-car dealers and how artificial intelligence can help. The problems can be
abstracted to the problem of high transaction cost and its subcategories. In reducing
transaction costs by utilizing artificial intelligence, new secondary problems
arise. People need to trust the certificate, the analytics, and the predictions. Additionally,
the data and analytics need to be transparent and understandable, and
privacy concerns must be addressed. The implications of this study are manifold.
First, we define the problems for used-car dealers on the used-car market and introduce
artificial intelligence approaches to the current data-driven used-car market.
Afterward, we stress that artificial intelligence needs to follow a human-centered
perspective and be designed for trust.
Language
English
Keywords
Used-car market
Transaction Costs
Trust
Artificial Intelligence
HSG Classification
contribution to scientific community
Division(s)
File(s)![Thumbnail Image]()
open.access
Name
Can Artificial Intelligence Help Used-Car Dealers Survive in a Data-Driven Used-Car Market.pdf
Size
30.27 MB
Format
Adobe PDF
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