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How artificial intelligence and machine learning are transforming auto industry monetization models

June 6, 2017


Ivan Mishanin, CEO Bright Box

Tectonic shifts are afoot in the automotive industry – moving away from traditional methods of selling cars to adopting IT solutions and services. Today’s active players are IT platform, content and services suppliers.

As car and ride sharing gain in popularity, new car services are necessary: remote diagnostics, user behavior analysis, automatic payment for parking, and many more. As a result, the car is being transformed into a connected gadget on wheels. Even a browser for the real world.

The traditional players (OEMs and dealerships) now must share the market opportunity with the IT players. So how can the very latest trends in IT — artificial intelligence (AI), machine learning, and big data analytics — help in the search for new monetization models in a changing car market?

Traditionally, cars are purely mechanical, and not designed to provide digital solutions. OEMs invested in the improvement of the quality of their engines and chassis, focused on improving safety and productivity. But the growth of internet technologies and the results that have been achieved in the fields of AI, machine learning, and big data analytics are transforming the auto industry. With these technologies, OEMs are improving the driving experience, meeting customer expectations, and are positioned to take advantage of new monetization models.

The service model

IHS Automotive predicts that by 2020 there will be roughly 152 million connected cars on the roads, with each generating up to 30 terabytes of data daily. Using aggregated data to preserve customer privacy, machine learning algorithms can identify driver behavior patterns, enabling OEMs to offer services that uniquely meet specific customer needs, long after the vehicle purchase.

For example, with data processing and the car’s management block, it’s possible to identify when a car is about to break down, before it happens. The car owner can be alerted, and the OEM can proactively contact a service center and register for repairs with a single click.

Providing connected car services brings manufacturers a higher marginal return compared to selling cars as standalone products. Machine learning algorithms and AI make it possible to sell each separate service efficiently to each user, and thus to earn more. More important, cars equipped with connected services is not just a product, but a continuous channel of communication between the manufacturer and the customer.

Industrial analysis and planning

The automobile development cycle is long enough for AI, big data analysis, and machine learning to enrich the product planning process. Data collection and analysis provides clear direction about the nature of customers and their consumable needs.

These solutions will be monetized through sale of services, accessories, and vehicles. AI will indicate a good time for changing cars, understand that a lifestyle has evolved, and can offer drivers a new car already customized for their needs.


Big data analysis and AI algorithms based help OEMs to forecast customer behavior. Collecting data from connected cars, internal production systems, and AI will help speed up the business processes and decision-making time of car manufacturers. Technology will help OEMs choose the right solution and strategy in the field of product marketing, sales and after-sales services by automating communication with customers, as well as by changing their lifestyle and perception of their vehicle.

At Bright Box, we are working with AI and machine learning technologies to offer the service model and solutions for forecasting user interactions. The Remoto platform provides the service model to dealership customers via a mobile app. By analyzing user experiences we can offer only those dealer services that they are interested in— when they need them. The system automatically recalls who the user is and helps the user immediately, thus creating a unique and innovative solution.


Bright Box is a European top-tier supplier of solutions and platforms for the connected car industry. Cisco Jasper Control Center integrates with the Bright Box platform for managing the MyHonda Connected Car platform. MyHonda uses Control Center to decrease operational costs, and guarantee the connectivity and responsiveness drivers need for the best possible connected car experience.

Learn how BrightBox and Honda Connect Services are achieving Real IoT results with Cisco Jasper Control Center.

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