OPENLANE Launches Visual Boost AI™ to Pinpoint Vehicle Damage

Rhea-AI Summary

OPENLANE, Inc. (NYSE: KAR) launches Visual Boost AI™, a new AI-powered tool that enhances buyer confidence and empowers smarter, faster purchase decisions in the wholesale used vehicle marketplace.

Insights

Market Research Analyst

The introduction of Visual Boost AI™ by OPENLANE represents a significant enhancement in the digital marketplace for wholesale used vehicles. The adoption of artificial intelligence in this sector is poised to streamline the vehicle inspection process, which is a critical factor in the buying decision for dealers. By providing a more transparent and accurate assessment of vehicle conditions, OPENLANE could potentially see an increase in transaction volume and customer satisfaction.

From a market perspective, this innovation may serve as a competitive differentiator, potentially increasing OPENLANE's market share. The ability to quickly and accurately assess vehicle damage could translate into higher turnover rates for inventory, leading to improved cash flows. Additionally, this technology may reduce the risk of post-sale disputes and returns, which can be costly for companies operating in this space.

However, the long-term success of this technology will depend on its accuracy and the user adoption rate. If the AI fails to detect certain types of damage or produces false positives, it could lead to mistrust among users. Furthermore, competitors may quickly develop or acquire similar technologies, which would dilute OPENLANE's first-mover advantage.

Automotive Industry Expert

Visual Boost AI™ is a transformative tool for the automotive wholesale market, addressing a longstanding challenge of accurately assessing vehicle condition remotely. Historically, the inability to effectively evaluate vehicle damage without physical inspections has been a barrier to efficiency and trust in online vehicle transactions. This AI-enhanced inspection process could encourage more dealers to participate in the digital marketplace, resulting in a more dynamic and liquid market.

The technology's impact on inventory turnover and buyer confidence could also lead to a broader acceptance of online vehicle sales, potentially reshaping industry norms. By setting a new standard for vehicle condition reporting, OPENLANE is not only improving the buyer experience but also influencing how vehicles are traded at a wholesale level.

While this innovation is promising, it's crucial to monitor the technology's performance over time to ensure it meets the high standards required for widespread industry adoption. The integration of such technology may also necessitate additional training for users to effectively interpret the AI-generated data, which could be a minor barrier to adoption.

Technology Analyst

The deployment of Visual Boost AI™ by OPENLANE leverages cutting-edge artificial intelligence and computer vision technology, which are rapidly evolving fields. The application of AI in vehicle condition assessment is a testament to the growing trend of digital transformation within the automotive industry. The technology's ability to provide a virtual overlay of exterior damage represents an innovative use of computer vision, which could be further developed for other applications within the sector.

As AI technology continues to improve, we can expect such tools to become more sophisticated, with the potential to detect not just exterior but also interior and mechanical issues. This could further revolutionize the vehicle inspection process and expand the scope of remote vehicle assessments. However, the effectiveness of AI systems depends on the quality of the underlying algorithms and the data they are trained on. Ensuring the system is trained on a diverse and comprehensive dataset is crucial to minimize bias and inaccuracies.

Furthermore, the integration of AI into business operations requires significant investment in both technology and human capital. OPENLANE's commitment to this technology indicates a strategic move to enhance its value proposition and stay ahead of technological trends, which could be advantageous in attracting tech-savvy buyers and sellers.

AI-Powered Tool Strengthens Buyer Confidence and Empowers Smarter, Faster Purchase Decisions

CARMEL, Ind., Jan. 3, 2024 /PRNewswire/ -- OPENLANE, Inc. (NYSE: KAR), a leading operator of digital marketplaces for wholesale used vehicles, announces the launch of Visual Boost AI™, new damage detection overlays for every dealer-consigned vehicle in OPENLANE's US marketplace. The AI-powered technology supplements vehicle inspection data by prominently highlighting detected exterior damage directly on photos within the condition report (CR), making it faster and easier for interested buyers to accurately locate and assess potential defects before making a purchase decision.

"Making wholesale easy is our north star, and Visual Boost AI solves a persistent industry pain point for buyers by instantly translating written CR data into an image overlay that's powerful in its simplicity," said James Coyle, EVP & president, North American marketplaces at OPENLANE. "We're proud to be the first to offer AI-powered insights on every dealer car on our marketplace. With one click, dealers can toggle the overlays and effectively get a second set of eyes to help them see anything they might have missed — like seeing the car in-person, from the convenience of your screen. Whether you're on the road, on your lot or on your phone, Visual Boost AI makes it easier than ever to understand what you're looking at so you can bid and buy confidently."

Now available on all dealer-consigned vehicles in OPENLANE's US marketplace, Visual Boost AI leverages artificial intelligence and computer vision technology to provide a virtual overlay of any exterior damage detected. The overlays feature hot pink highlights that pinpoint detected damage, including hail, paint peel, detached panels, broken lights, rust, scratches, dents and cracks. Buyers can toggle the overlays on or off within the condition report for each vehicle they review, empowering them to more quickly and accurately interpret the data captured in the vehicle description and ultimately make smarter, more profitable bidding and buying decisions.

"OPENLANE's Visual Boost AI really improves the quality of the inspections, giving me 60%-70% extra confidence about the major damage on the vehicle," said Rami Mourtaja, general manager of R B Morgan Co in Houston, Texas. "Before, I was circling the pictures trying to find everything, and now it's all done for me. Scratches, dents, everything — it's easier and faster than ever for me to view an inspection and bid with confidence."

Innovated in partnership with Click-Ins Visual Intelligence platform for vehicle inspections, Visual Boost AI expands the company's portfolio of mobile-based artificial intelligence capabilities for damage detection and vehicle inspections. OPENLANE's network of independent vehicle inspectors scan the vehicle using their smartphone camera as part of their regular inspection process. The technology automatically generates AI-detected damage overlays for each of eight standard CR images showing the vehicle at successive 45° angles, which the inspector then validates and reconciles. The entire process takes less than a minute and helps further strengthen both seller and buyer confidence while promoting a more vibrant marketplace. To learn more and schedule a demo, visit openlane.com.

OPENLANE Contacts:
Media Inquiries:	Analyst Inquiries:
Laurie Dippold	Mike Eliason
(317) 468-3900	(317) 249-4559
laurie.dippold@openlane.com	mike.eliason@openlane.com

 

About OPENLANE
OPENLANE, Inc. (NYSE: KAR) provides sellers and buyers across the global wholesale used vehicle industry with innovative, technology-driven remarketing solutions. OPENLANE's unique end-to-end platform supports whole car, financing, logistics and other ancillary and related services. Our integrated marketplaces reduce risk, improve transparency and streamline transactions for customers around the globe. Headquartered in Carmel, Indiana, OPENLANE has employees across the United States, Canada, Europe, Uruguay and the Philippines. For more information and the latest OPENLANE news, visit corporate.openlane.com.

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SOURCE OPENLANE

FAQ

What is the new tool launched by OPENLANE, Inc. (NYSE: KAR)?

OPENLANE, Inc. (NYSE: KAR) has launched Visual Boost AI™, a new AI-powered tool that provides damage detection overlays for every dealer-consigned vehicle in their US marketplace.

How does Visual Boost AI™ help buyers in OPENLANE's US marketplace?

Visual Boost AI™ supplements vehicle inspection data by highlighting detected exterior damage directly on photos within the condition report, making it faster and easier for interested buyers to accurately locate and assess potential defects before making a purchase decision.

What technology does Visual Boost AI™ leverage?

Visual Boost AI™ leverages artificial intelligence and computer vision technology to provide a virtual overlay of any exterior damage detected, featuring hot pink highlights that pinpoint detected damage, including hail, paint peel, detached panels, broken lights, rust, scratches, dents, and cracks.

How does Visual Boost AI™ empower buyers in OPENLANE's US marketplace?

Buyers can toggle the overlays on or off within the condition report for each vehicle they review, empowering them to more quickly and accurately interpret the data captured in the vehicle description and ultimately make smarter, more profitable bidding and buying decisions.