BCG X and AWS have teamed up with BMW to implement and scale a critical automotive AI transformation built with customer centricity at its core.
Unlocking the Value of AI in the Automotive Industry
Many AI engagements in the automotive and trucking 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.
About Auto AI by BCG X
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 and trucking industry can be left frustrated when looking for meaningful ROI from artificial intelligence implementations. BCG helps companies across the entire 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 and trucking AI solutions for a variety of use cases, including:
Conversion rate engine
to measure promotions and campaign effectiveness against competitors.
Pocket configurator
to provide customers with driving statistics and recommend future model configurations.
Cross-selling advisor
to align customer needs with profitability, enabling effective cross-selling at the point of sale.
Micro-market intelligence
to improve dealer performance and increase sales volume.
Factory footfall
to anticipate supply chain disruption through production facility observation.
Build-to-stock optimization
to support dealer's stock vehicle purchase decisions and match local demand.
OES aftersales inventory optimization
to increase inventory turn rates and reduce working capital and logistic costs.
Warranty and lifecycle clustering
to identify root causes and reduce time until corrections are implemented.
OES quality improvement manager
to optimize production parameters and reduce scrap.
A Passion for Data and Cars: The Story of Auto AI by BCG X
In the automotive industry, it is notoriously tricky to set sales prices, let alone make real-time adjustments. Auto AI by BCG X is an advanced analytics solution for automotive and trucking manufacturers, suppliers, and dealers that crunches ever-changing data points on a micro-market level; it then uses machine learning to simulate the impact of price changes on sales volumes. Auto AI can also inform strategies for inventory management and volume allocation.
Watch BCG X’s Andrej Levin explain how his own childhood passions led to the creation of Auto AI and how the industry is already benefiting from our transformative offering.
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
2pp
EBIT increase
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 2 percentage points.
25%
improvement in forecast data
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.
30%
reduction in days on lot
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.
Video
November 29, 2022
BCG X and AWS
Our Experts
Meet Our Auto AI Leaders
Working closely with our technology and services partnership ecosystem, our Auto AI team helps clients with their auto analytics transformation, uncovering solutions that lead to more value from AI. Here are some of our experts on AI in the automotive and trucking industry.
Our Insights on Auto AI by BCG X
Video
September 9, 2024
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.
Why Generative AI enables a leap forward in the automotive customer experience.
Video
March 25, 2024
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.
Video
March 26, 2024
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.
Video
February 7, 2024
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.
Automotive Industry
Article
January 9, 2024
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.
Automotive Industry
Article
December 14, 2023
The car selling model has remained unchanged for decades. But as the industry evolves, is the model about to change for good?
Automotive Industry
Article
July 27, 2023
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.
