Tractable


13.06.2023

4 min read

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Revolutionizing Repairs: AI in the Collision Ecosystem

With seemingly constant advancements in artificial intelligence (AI) in recent months, business leaders around the globe are questioning how the technology can be applied to their operations. One such sector within the auto ecosystem that stands to gain substantially from AI's advancements is the collision and repair industry.

At Tractable, we’re on a mission to uncover and solve the many issues impacting the automotive and property ecosystems with AI solutions and industry collaboration. Our technology uses computer vision to assess the condition of vehicles and home interiors with speed and precise accuracy so that whenever these important assets need to be repaired, sold, reused or rented, people can spare time, resources and stress. After all, car accidents and catastrophes that cause home damage are some of the most vulnerable and needy times in consumers’ lives. 

One such sector within the auto ecosystem that stands to gain substantially from AI's advancements is the collision and repair industry. The collision industry faces seemingly endless pressures and challenges, both internal and external, that lead to lengthy repair times, lost revenue opportunities, unhappy customers and overly complex operations that only amplify existing issues.

⁠Adding to these problems, repairers of all sizes are up against stiff market competition, technician and staffing shortages and a lack of resources to implement cutting-edge technology to find relief.



⁠Navigating the New Normal: Inflation, Supply Chain Disruptions and Parts Shortages


⁠The post-pandemic world has not been easy for the automotive industry. Grappling with inflation and rising costs, supply chain disruptions and parts shortages, repairers are desperate for relief to today’s market pressures. JD Power reports that in 2022, customer satisfaction with the auto repair process was down 9 points year-over-year with parts order delays and body shop backlogs cited as top issues. The same survey also found repair cycle times have increased by five days– up to 17 days on average from 12 days pre-pandemic. With fierce competition in the repair ecosystem, it’s never been more important to provide customers a superior repair experience.

At the root of extended repair times leading to unhappy customers is the auto parts shortage caused by global supply distributions. Ordering parts and managing inventory, especially for smaller shops, can be a nightmare and when mismanaged causing a ripple effect throughout the entire business. Not only are customers left waiting for their vehicle, but relationships with carriers are impacted as rental car periods are extended and additional costs are incurred. Staff becomes backlogged with repair work– exacerbated by the shortage of bodyshop technicians – and resources are wasted providing repair estimates for “window shopping” customers. 

⁠It’s obvious: repair shops urgently need a tech makeover that provides relief so customers can get back on the road and on with their lives. 


⁠The Promising Application of AI for Auto Repairs

⁠Fortunately, industry leaders recognize these hurdles and are exploring new applications of cutting-edge tech, like AI. Now, when a driver experiences vehicle damage, with just their smartphone they can be guided through a remote assessment process and receive an accurate damage estimate in just minutes. 

This technology brings body shops numerous benefits that ease the burdens described above: 

  • 24/7 Customer Acquisition: With Tractable’s solution, customers can get an estimate anywhere, at any time, with no requirement to drive into a collision center​. No longer is customer acquisition dependent on the short workday

  • Job Categorization​: AI reduces “cherry-picking” work that leads to unsustainable business practices. It helps to categorize and prioritize repair jobs, letting technicians focus on the highest priority and revenue-driving repairs

  • Staff Productivity: By automating estimates and customer pay requests, staff no longer risks burned resources and time on customers that don’t convert, especially important amid the scarcity of auto technician talent

  • Stronger Market Position: AI enables shops to attract independent repair work, thus reducing business dependency on leads from insurer DRP work. Within the ecosystem, repairers build stronger relationships with partners for providing superior service

  • Estimate Consistency​: With AI, damage estimates are accurate and consistent across the business, so no matter which technician is working or in what location, estimates are objective and based on models trained on millions of data



⁠Driving Change with AI

In an age where convenience is king and customers demand superior digital experiences, AI offers an effective solution to the collision ecosystem’s myriad of challenges. While a seemingly daunting technology to master, AI companies like Tractable make it seamless to implement and onboard so value is achieved from the get go. Across the entire business, these solutions increase the speed, accuracy and service of body shop operations, and stand to transform the broader industry.

If you’re interested in learning more about how Tractable’s AI can streamline your collision business and seeing a demo, get in touch with us at tractable.ai/contact

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