Customers Favor AI-Based Technologies but Automakers May Not Have Best Advanced Tech Strategy: J.D. Power - Insurance-Canada.ca

Genesis ranks highest overall for tech innovation for fourth consecutive year; Hyundai ranks highest among mass market brands for fifth consecutive year Troy, MI (Aug.29, 2024) – Are vehicle owners becoming overwhelmed with technology features that don’t solve a problem, don’t work, are difficult to use or are just too limited in functionality? The results of the J.D.Power 2024 U.S.

Tech Experience Index (TXI) StudySM, suggest that could be the case.The study, which focuses on the user experience with advanced vehicle technologies as they come to market, finds that while owners offer praise for some advanced features, others are found to be lackluster.New Artificial Intelligence (AI)-based technologies, like smart climate control, have quickly won popularity with those owners who have used it, yet recognition technologies such as facial recognition, fingerprint reader and interior gesture controls fall out of favor as they unsuccessfully try to solve a problem that owners didn’t know they had.

For example, not only do owners say that interior gesture controls can be problematic (43.4 problems per 100 vehicles), but 21% of these owners also say this technology lacks functionality, according to newly added diagnostic questions in this year’s study.These performance metrics, including a lack of perceived usefulness, result in this technology being considered a lost value for any automaker that has invested millions of dollars to bring it to market.To assist in solving this problem, J.D.

Power has developed a return on investment (ROI) analysis as part of the TXI findings to use advanced data science to cluster individual technologies into three categories.The categorization of technologies—must have, nice to have and not necessary—provide automakers the ability to better align their contenting strategy with customer expectations.“A strong advanced tech strategy is crucial for all vehicle manufacturers, and many innovative technologies are answering customer needs,” said Kathleen Rizk, senior director of user experience benchmarking and technology at J.D.

Power.“At the same time, this year’s study makes it clear that owners find some technologies of little use and/or are continually annoying.J.D.

Power’s ability to calculate the return on investment for individual technologies is a major step in enabling carmakers to determine the technologies that deserve the most attention while helping them ease escalating costs for new vehicles.” Following are some of the key findings of the 2024 study View the customer satisfaction index ranking charts in J.D.Power’s press release.For more information, refer to the J.D.

Power 2024 U.S.Tech Experience Index (TXI) Study.Notes 1.

J.D.Power 2024 U.S.Insurance Shopping StudySM.

About J.D.Power J.D.Power is a global leader in consumer insights, advisory services, and data and analytics.

A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, J.D.Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 55 years.The world’s leading businesses across major industries rely on J.D.

Power to guide their customer-facing strategies.J.D.Power is headquartered in Troy, Mich., and has offices in North America, Europe, and Asia Pacific.

To learn more about the company’s business offerings, visit JDPower.com/business.The J.D.Power auto shopping tool can be found at JDPower.com.

Tags: Artificial Intelligence (AI), J.D.Power, strategy, technology investment, United States (USA)

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