How AI Is Shaping the Future of Auction Management
June 13, 2023
AI is making waves and making headlines, but what does it mean for the auction industry?
Unless you’ve been living under a rock, chances are you’ve heard whisperings about the rise of Artificial Intelligence in recent months. From AI-generated artworks to headlines about ChatGPT, more and more industries are integrating AI into their operations in order to improve communications, benefit productivity and more.
And the groundswell of interest in AI shows no signs of abating. In fact, Forbes reports that AI is expected to grow more than 37% every year between now and 2030.
One industry in which AI is certainly changing the game is auction management. Auction houses around the world are discovering the benefits of investing in the latest cutting-edge AI technology.
But what operational advantages are there to be gained? Let’s take a closer look.
Automated auction tasks
AI is often used to tackle the monotonous tasks that in-house teams don’t have the time or patience for. For auction houses, this means there is potential for AI to automate and optimise key responsibilities, such as cataloguing, item valuation, registration and payment processing. In other words, essential data entry that would otherwise be time-consuming and often at risk of human error.
By analysing historical auction data, market trends and user preferences, AI can be used to streamline auction administrative processes to improve overall efficiency.
Informed decision making
It’s unrealistic to expect staff to analyse huge reams of historical data about sales and trends, but AI systems can do just that in minutes. This opens up a whole new world of data-driven decision making for auction houses, providing inventory recommendations, pricing strategies, marketing routes and more – all based on reliable facts and figures.
Through AI, auction houses can make data-based decisions to identify emerging trends, forecast demand, stay competitive and maximise outcomes.
Analysing auction data can be particularly beneficial when it comes to bidding. AI algorithms can explore historical and real-time bidding behaviours to assist in more informed bids and recommendations.
Last year, a study presented at the 23rd ACM Conference on Economics and Computation explored the relationship between AI and auction designs. Researchers found that making use of AI algorithms made for faster bids and greater competitiveness.
Tailored customer engagement
AI data isn’t only useful at the bidding stage of auctions. It can also be used to get to know customers, leveraging data to offer personal recommendations for items they might be interested in. AI can suggest items that align with user interests to drive higher bids.
As Yair Zisling, Chief Business Officer at Artbrain, explains,
“Artificial Intelligence arms auction houses with powerful tools for growth. Customer data can be matched with auction house inventory in minutes, enabling personalised communications to be sent that are not only engaging but are proven to convert. This kind of task would take weeks of manual effort within marketing teams but it is light work for our machine learning engine.”
Even customer service communications can be enhanced and improved through the use of AI. Chatbots and virtual assistants can provide instant support and detailed answers to frequently asked questions, freeing up human team members to offer more tailored support.
Mass market research
The ability of AI solutions to provide insights based on large quantities of data is particularly powerful when it comes to marketing. Auction houses can conduct mass market research of trends, social media data and user preferences to identify what customers are looking for.
Analysing social media data and online conversations about collectables and artworks makes it possible to gain valuable insights around popular categories, potential bidders, emerging markets and more.
Recently, food giants Danone used AI social data to study their audience’s hobbies, interests and preferences. As a result, they say their reach increased by 20% and engagement by 35%.
Cybersecurity and fraud detection
With the vast majority of industries becoming increasingly digitised, cybersecurity concerns are on the rise. In fact, Astra Security reports that 2023 will involve around 33 billion data breaches.
AI can be used to mitigate fraud and ensure auction integrity by analysing user habits and information. Through the identification of suspicious bidding patterns, auction houses can detect potential fraudsters and gather necessary intelligence to enhance security measures and protect bidder data.
A bright future with AI and Artisio
With AI developing all the time, its role in auctioning is full of potential. From advancements in computer vision for item recognition to natural language processing for improved customer interactions, the future is exciting and full of possibilities.
This is especially true with innovators like Artisio leading the industry. As Artisio CEO and Co-Founder, Berdia Qamarauli, says,
“Our mission has always been to introduce the auction industry to new and effective technologies. We pioneer the latest innovations by incorporating AI features into our solutions, creating an ecosystem that supports all kinds of auction management.
“Our comprehensive auction management solution handles all aspects of your business under one platform, from front-to-back sales to online payments and inventory.”
Find out more about Artisio AMS today by booking a demo