Companies have moved quickly to implement GenAI, but many may be celebrating too early, before achieving measurable benefits. It’s time for a focused approach.
Unlocking the Value of AI in the Automotive Industry
Many AI engagements in the automotive industry never progress beyond proof-of-concept. Our advanced analytics solution uses business and technology expertise to help clients achieve lasting, end-to-end implementations that change the course of the industry, disrupting operations, sales, marketing and more.
Offering capabilities that can’t be found anywhere else in the industry.
From manufacturers and suppliers to dealers and service providers, players in the automotive industry can be left frustrated when looking for meaningful ROI from artificial intelligence implementations. BCG helps companies throughout the industry realize clear competitive advantage through AI. Our customized Auto AI solutions, powered by BCG X, focus on value, speed, and scale and are guided by proven use cases—enabling more resilient supply chains, double-digit savings in incentives spend, and strong margin gains.
From manufacturers and suppliers to dealers and service providers, players in the automotive industry can be left frustrated when looking for meaningful ROI from artificial intelligence implementations. BCG helps companies throughout the industry realize clear competitive advantage through AI. Our customized Auto AI solutions, powered by BCG X, focus on value, speed, and scale and are guided by proven use cases—enabling more resilient supply chains, double-digit savings in incentives spend, and strong margin gains.
Our Approach to AI in the Automotive World
BCG’s experts on AI and the auto industry leverage a full stack of end-to-end delivery capabilities to meet the client’s exact business challenge and has successfully developed customized automotive AI solutions for a variety of use cases, including:
Benefits
Auto AI’s Equation for Success
BCG teams orient a full stack of capabilities to the client’s exact business challenge and build innovative solutions that position the company for early value and sustainable results.
Our Clients’ Success with Automotive AI
BCG helped a global OEM build and deploy a dynamic spare-parts pricing platform, enabling the client to react faster to market changes. The platform allows the client to set optimal prices at the individual SKU level by leveraging internal and external data and state-of-the-art analytics. By implementing this approach, the client’s EBIT on spare parts increased by 3%.
3%
EBIT increase
The resource-intensive option management system at a multinational parts manufacturer was too complex, leading to eroding margins. BCG created a solution that used multidimensional data to improve forecast data by 25% and extended forecasting timeframes to 24 months.
25%
improvement in forecast data
BCG helped a global car manufacturer develop a fully integrated, customer-centric, build-to-stock sales platform. The solution blended analytics and business insights to recommend vehicle configurations that would provide dealers and national sales companies faster turnover rates and higher profit margins.
30%
reduction in days on lot
Meet Our Auto AI Leaders
While automotive companies spend billions to radically change their vehicles’ look, feel, propulsion, and features, the car buying experience remains burdensome and dissatisfying to consumers.
The car selling model has remained unchanged for decades. But as the industry evolves, is the model about to change for good?
Charging an electric vehicle takes more time than fueling a car. An innovative BCG simulation identified key factors that will help drivers make the switch to an EV.
In recent years, the industry has dabbled in artificial intelligence applications, with disappointing results. But as companies look to the postpandemic future, AI’s time has arrived.
Powerful footfall data can provide visibility into dealership performance for automotive OEMs and large dealership groups—if you know how to look at it right.
OEMs have harnessed AI’s power under the hood. Now they must apply it in sales. Seven best practices help automakers scale AI across the organization.
Charging an electric vehicle takes more time than fueling a car. An innovative BCG simulation identified key factors that will help drivers make the switch to an EV.
Powerful footfall data can provide visibility into dealership performance for automotive OEMs and large dealership groups—if you know how to look at it right.
Our Insights on Auto AI by BCG X
BMW Group's Transformation: Turning GenAI Concepts into Scalable Success
BMW has launched a major transformation initiative, leveraging GenAI to streamline procurement tasks, rethink processes, and improve supplier interactions. As an extension of our existing partnership around AI, BCG and BMW are now partnering with AWS, BCG X, and BCG Platinion to ensure a secure, scalable integration of GenAI.
Using Generative AI to Revolutionize the Automotive Customer Experience
Why Generative AI enables a leap forward in the automotive customer experience.
Using AI to Improve Customer Centricity in the Automotive Sector
BMW's Global Head of Brand and Product Management explains how his company leverages the power of AI, big data, and advanced analytics to gain a better understanding of what buyers want in order to deliver a consistent, differentiated customer experience.
Strengthening a Brand with GenAI
BMW's Global Head of Brand and Product Management explains how the right organizational processes and platforms can help companies maximize the value of GenAI tools.
The Future of Auto Sales
The auto industry has innovated the car—but how will generative AI disrupt the customer experience? At CES 2024, BCG's Andrej Levin moderated a conversation with industry experts on the impact of AI and direct-to-consumer models.
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Innovation Has Transformed the Car but Not Yet the Car Buying Experience
While automotive companies spend billions to radically change their vehicles’ look, feel, propulsion, and features, the car buying experience remains burdensome and dissatisfying to consumers.
Article
Car Selling Without Price Negotiations
The car selling model has remained unchanged for decades. But as the industry evolves, is the model about to change for good?
Article
What 15 Million Car Trips Reveal About EV Adoption
Charging an electric vehicle takes more time than fueling a car. An innovative BCG simulation identified key factors that will help drivers make the switch to an EV.
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