Off the lot: Is AI an innovation drain?

We’re in the heat of summer and the only subject hotter than the weather is discussion around AI. . It’s the subject of conferences and articles about changes in how we think, purchase, drive or fly, and ultimately how we analyze the huge collection of historical data at our fingertips to gain more intelligence . I began thinking about this in the automotive and auto finance spaces — and how AI might change our world in general. From an automotive and auto finance perspective, teams of data scientists and mathematicians are crunching data to drive better performance and improve financing models . . At the same time, people with operational experience may challenge the correlations and suggest considering using different data points. This constant challenge to data-sourcing is a result of people thinking about the results of what the data team developed, what the sources and inputs were, and whether there were data points missed in the analysis. . Without this approach, the analytics risk being myopic. Key to AI output is knowing how to ask questions in order to avoid biased results. AI could change how teams approach and analyze causation and correlation within datasets. . The ultimate recipient of AI-generated information may eventually be more involved in the early stages of data mining. AI is built on existing data AI is inherently a backward-looking approach since all its resources have already been developed or published. . The ability to access AI-driven data rapidly increases human capacity but may limit creativity when it comes to how to look at information in an intuitive way, especially with AI models pulling from internal data sources. As employees are driven to secure answers rely more on AI, they may be querying a resource for an answer without thinking “outside the box.” It may become necessary to ensure that there is an “imagineering” capacity among data team leaders. . The term CIO may shift from referring to the chief information officer to chief imagination officer; this could assure that distinctive and innovative concepts are included and encouraged. Is AI the end of invention? I recently attended Experian ’s Vision 2024 event and heard former OpenAI Head of GTM Zack Kass , who represents himself as an AI futurist, speak about the benefits AI will bring, from curing neuromuscular disease to perfecting nuclear fusion. . During the Q&A, he was asked if the use of AI for information, research, writing and analytics becomes universal, is AI the last thing human beings will ever invent. . The idea is not so nonsensical. Our industry and others have always been creative and innovative: from new forms of lending to new valuations models to new vehicles to new finance instruments. . The developments have only been limited by the imagination of the people who are looking to do something different and wondering “what if?" If we enter a time where we relegate the pursuit of our answers to backward-looking AI resources and we focus on getting the answer quickly, we may lose the creativity that has been driven by human curiosity. Wonder is a uniquely stimulative concept in the human mind and our ability to wonder about “what if” has long been the source of innovation. . From the beginning of time, the human mind has wandered into places never traveled, creating the amazing benefits and advancements which society benefits from and is challenged by. . AI itself was created by this same creativity and wonder. While we’re exercising our imagination, it’s not out of the question to believe that if we bring these abilities to humans too young, we diminish the concept of wonder , teaching them to go get the answers through AI software and lose the benefit of imagination and ingenuity. . The future could be divided by those who are machine-like in their approach to securing answers and those who create. Kass’s answer to the question on AI: “We have to consciously maintain the concept of wonder and the way to do that is all of us, every now and then, and not infrequently, put down our machines, our phones, our computers and go look at the stars and think about things without going and getting the answer.” Wondering and imagining the answer versus mining for the answer will proliferate the ability to be creative and keep that muscle exercised. This is likely to be one of the great challenges of leaders going forward: to constantly ask our teams to look beyond the easy answer — beyond the chatbots and the AI analytics — for new concepts and inputs for answers that advance the organization through creativity. Bruce Newmark , formally chief adviser of Vroom and United Auto Credit Corp. , is retired and a consultant to the industry. . Newmark has more than 45 years of experience in automotive retail and finance. . Before joining Vroom, Newmark’s tenure spanned leadership roles at Fimanco , Ford Motor Co. , Hankey Automotive Group and Westlake Financial . Auto Finance Summit, the premier industry event for auto lending and leasing, returns Oct. 7-9 at Wynn Las Vegas. . To learn more about the 2024 event and register, visit www. .AutoFinanceSummit.com.

Off the lot: Is AI an innovation drain?

AI could be prompting people to find answers rather than create

Tesla beats estimates with less-drastic drop in vehicle sales

Synchrony Outdoors SVP Medrano joins PowerSports Finance Summit 2024 for fireside chat

Related Posts

GM Financial’s digital tools target ‘three key personas’

CPS: AI agents as effective as humans in some cases

Mercedes-Benz to launch new fraud-prevention tool

Synchrony Outdoors SVP Medrano joins PowerSports Finance Summit 2024 for fireside chat

Stay Informed with Our Newsletters

The Roadmap Podcast

SPONSORED

Driving Innovation in Automotive Refunds: How Onbe and Allied Solutions Are Modernizing the Payment Experience

Navigating the Margin Squeeze: EVs, Tariffs & Pricing — A Q&A with Earnix

Enhancing credit approaches to boost conversion and dealer loyalty

Welcome Back!

Retrieve your password