Last year was a whirlwind in the enterprise tech world, specifically in auto finance, marked by significant shifts and unexpected developments. From the rise of generative AI to unconventional cybersecurity tactics, the landscape continues to evolve rapidly. This article explores the significant trends that have defined this dynamic period.
Gen AI takes center stage
The emergence of generative AI, exemplified by OpenAI‘s ChatGPT, has been a game-changer. Originally released at the end of 2022, ChatGPT swiftly became a transformative force altering how we interact with software. This technology is poised to redefine user experience design and presents the most substantial shift since the era of point-and-click interfaces. The impact of generative AI extends beyond interaction by influencing creative processes, decision-making and customer service.
Cybersecurity: Low-tech intrusions, unseen threats
Contrary to the stereotypical image of sophisticated hackers, the cybersecurity landscape in 2023 showcased the effectiveness of low-tech methods. Hackers proved that advanced malware is not always necessary for large-scale intrusions. The Lapsus$ gang leveraged social engineering tactics to infiltrate major organizations, revealing the continued relevance of human-centric vulnerabilities. The so-called Scattered Spider group, responsible for breaches at MGM Resorts International, Caesars Entertainment and Coinbase, utilized deceptive phone calls as a powerful tool. Similar tactics were used against auto call centers, but with policies in place, no losses were incurred.
Technology’s Achilles heel
The year also saw a rise in breaches linked to outdated technology. Neglected software updates created vulnerabilities, exemplified by companies like Boeing struggling with unaddressed security flaws. The elusive nature of data breaches, including ransomware attacks on major entities, prompted regulatory measures to enhance transparency and accountability.
Customer-centricity remains at the forefront, with AI playing a crucial role in understanding and meeting customer expectations. AI-driven personalization ensures that customers receive relevant content, offers and recommendations based on their preferences and past interactions. Predictive analytics helps dealerships anticipate customer needs, providing a proactive and personalized service experience.
Generative AI’s impact on work
The transformative power of generative AI extends to the workforce and reshapes the nature of jobs and industries, including auto finance. The technology, rooted in algorithms capable of generating original content, is influencing sectors such as marketing, graphic design and content creation. Executives and managers leverage generative AI for enhanced decision-making and strategic planning, while customer service experiences are being redefined by AI-driven chatbots and virtual assistants, and AI co-pilots help lenders speed up underwriting.
New roles and ethical considerations
As AI takes over certain tasks, it creates new job roles and skill requirements. Professionals must adapt by acquiring new skills, including AI literacy and data analysis. However, the rise of generative AI also raises ethical considerations, emphasizing the need for responsible AI use. It becomes a collective responsibility for professionals across all sectors to ensure fairness, transparency and accountability in AI systems.
The past year underscored the necessity of digital transformation, tempered with respect for existing infrastructure limitations. Ensuring that new technology improves the landscape while doing no harm is a tall order in 2024.
The industry is seeing an increase in legislation around technology as well as for customer products, such as South Carolina Senate bill 910, as lessons are learned. Congress is considering reform of the Dodd-Frank Wall Street Reform and Consumer Protection Act to ensure that it has the right balance for the market and consumers.
Amid low–tech fraud attacks, companies like Informed can proactively review trends within their data consortium to protect various views across the industry while also responsibly protecting data.
The journey through 2023’s enterprise tech landscape reveals the centrality of generative AI in driving transformation. The year highlighted the importance of adapting to change, staying informed and preparing for the future. By embracing these shifts, professionals can not only thrive in the evolving landscape but also contribute to building a more efficient, innovative and inclusive future of work.
Jessica Gonzalez is the director of lending strategies at Informed.IQ and has more than 15 years’ experience in the financial services industry, including tenures at Santander Consumer USA and Visa.
Early-bird registration is now available for the second annual Auto Finance Summit East, May 1-3 in Nashville, Tenn., which gathers lenders, dealers and fintech innovators in an event designed to bring the power of technology to a cross-section of industry players. Early bird pricing ends March 15. Visit AutoFinance.Live to learn more.