AI, Unknown and Optimism
AI, Unknown and Optimism
Guest writer John Dowling addresses one of the current topics that is at the forefront of the international conversation, “AI, Unknown and Optimism.”
Amidst the hype and excitement about Artificial Intelligence, it’s important to remember its potential to revolutionize the heavy equipment industry. Whether you view it as a significant technological leap or harbor concerns about its implications, we can all agree that AI is a new frontier full of possibilities. There’s much to learn about harnessing the power of artificial intelligence to drive the success and profitability of heavy equipment dealerships, and this journey is one filled with unknowns and optimism.
There are two routes when choosing an AI platform. I’m not an IT expert, so I won’t be using technical jargon. I apologize in advance if I don’t use the correct terminology. Let’s refer to one option as “captive AI” and the other as “noncaptive” or “free AI.” By captive AI, I mean that the manufacturer’s AI platform will be limited to its branded products, providing support exclusively for its dealers.
On the other hand, noncaptive or free AI, which we can also call unlimited AI, refers to a third-party AI provider that is not restricted to a single manufacturer or data source but can access data from all dealer sources.
Now that we’ve defined ‘limited’ and ‘unlimited’ AI, it’s time to discuss their advantages and disadvantages. This knowledge will empower you to make an informed decision about Artificial Intelligence, a decision that could significantly impact your dealership’s future.
While this blog may not provide a definitive answer, it aims to equip you with the knowledge to make informed decisions. We’ll discuss the benefits and concerns that dealers face when they begin to explore this new and unknown technology, guiding you through this complex but promising terrain.
Let’s start with the advantages of utilizing AI. These benefits include increased parts sales, higher technician recovery rates, reduced employee onboarding time, decreased time spent processing warranty claims, less time needed for receiving technical support from the OEM, and improved data utilization.
During a conversation, Cristoph Nathan, the Executive Director of Product Support for Kubota, made the point that AI does precisely what a human can do by processing data but does it more efficiently. Joel White with Digital Iron stated that AI can do the “laborious tasks,” freeing time for the dealership’s employees.
I was trying to update my Air MacBook the other day, but I got an error message saying I did not have enough memory to download the latest update. While cleaning up my MacBook and deleting unwanted text messages and duplicated pictures, I was just dumbfounded by the amount of data I had. Dealerships and manufacturers are no different. They have years and years of data stored on a server somewhere, but there is no good or efficient way to access and use it. And that is where AI comes in. The benefit and power of Artificial Intelligence is the ability to effectively and efficiently utilize your data to deliver better customer service and increase profitability.
The benefit of using a limited AI platform, especially one provided by a manufacturer, is that dealers don’t need to go through an integration process. This means they don’t have to upload manuals or involve third-party providers to access their data. The advantage of this limited platform is that the dealer’s data is not used, thus there is no risk of compromise.
However, before we get too excited, we should consider whether this is the right direction to go in order to protect our data. There is always a drawback to consider. When I discussed Tech Assist, Case IH’s AI assistant, with Jim Hudson, a Regional Service and Parts Sales Manager with Case IH, and some Case IH dealers, the Case IH dealer’s technicians expressed that they see value in the Tech Assist platform. It reduces the time needed to find information to diagnose a piece of equipment, ultimately increasing technician efficiency in the long run.
Kubota has also been successful with an AI platform, but there is a drawback. The platform can only search Kubota manuals, and the same limitation applies to Case IH dealers. This is because the AI platform is restricted to the data of specific manufacturers. For multi-line dealers, a separate AI platform would be needed for each manufacturer they work with. An unlimited or third-party AI platform would allow technicians to search all manufacturers’ manuals with just one login, instead of needing a separate login for each line of equipment.
I recently conducted a training video emphasizing the importance of estimating every job. Service managers often don’t estimate every job because determining the repair time for a piece of equipment is not convenient or accessible in the heavy equipment industry. Kubota’s upcoming AI iteration will include a service estimate platform. This exciting development will assist Kubota dealers in increasing technician recovery rates and profitability.
I believe Kubota is moving in the right direction, and I’m excited to see this AI in action. However, there will be a downside to this next iteration. The issue will be that the AI will be limited. Kubota’s platform and any other manufacturer will only be able to use their data, which will be based on warranty data. This is a contentious topic. Manufacturers think their warranty flat rate times are generous and accurate, but dealers don’t believe that.
But this blog is not about warranty reimbursement rates. The point is that the manufacturer’s AI platform is limited to warranty reimbursement rates. So, their estimating model will be based on what the warranty reimburses the dealers, not actual customer billing times.
It’s important to remember that a manufacturer’s AI platform has the advantage of not being integrated with the dealer’s data. However, the downside is that the manufacturer’s platform is restricted to only their data. This means that using AI to estimate service jobs relies on the manufacturer’s warranty reimbursement claims, not the repair times the dealer has previously charged customers.
After completing the training video on estimating every job, I realized how practical and beneficial it would be for AI to assist dealers in estimating jobs. I contacted Joel White, the Head of Marketing at Digital Iron, an AI platform based in Belfast, Ireland. I inquired whether they could develop an AI model to extract data from the dealer’s business system and help the service manager estimate service jobs.
Joel arranged a meeting for me with Ciaran Gillen, the founder of Digital Iron, to discuss this further. Ciaran confirmed they could build a model to extract the necessary data from closed work orders and assist the service manager in estimating customer repairs.
A third-party AI platform not limited to one manufacturer’s data will allow service managers to pull from the data within the dealer’s business system. The third-party or unlimited platform will not be limited to just one brand or manufacturer but could be utilized to estimate every line or brand of equipment a dealer sells. However, the drawback is that the dealer has to give the third-party AI platform access to their data to build the model.
AI is only as good as the data it has access to. There is no limit to what AI can do for the heavy equipment dealership. But we must remember that AI will only be as good as the data it can learn from. Manufacturers’ AI platforms will be an easy way for dealers to integrate AI into their overall business practice. However, the manufacturer’s platform will be limited only to the manufacturer’s equipment and data.
If your dealership only carries one line of equipment, using the manufacturer’s limited platform may be the way to go, but what about dealers with multiple lines of equipment from different manufacturers? We could all see the benefit of a third-party or unlimited platform.
If you choose to go with a manufacturer’s limited platform, there will be no need for integration or allowing the AI platform access to your business system and data. However, as stated before, Artificial Intelligence is only as good as the data it accesses. The more data and the higher quality of the data that AI has, the more productive and valuable it will be.
Maybe the third-party AI platform is the way to go. But before you make that decision, you must remember that you will need a trustworthy AI service provider because they will need access to your data to work efficiently and profitably. No matter what direction or road you take with AI, it will be full of unknowns and optimism.