SunCar partners with ByteDance to integrate AI into auto services

NEW YORK - SunCar Technology Group Inc. (NASDAQ:SDA), a $211 million market cap company that has seen its stock decline nearly 79% year-to-date, announced Monday it has signed an AI technology cooperation agreement with Volcano Engine, ByteDance’s enterprise technology service platform, to integrate ByteDance’s Doubao Large Language Model into its auto insurance and services operations. According to InvestingPro data, the company is currently showing signs of being undervalued despite its challenging year.

The partnership will enhance SunCar’s automotive services dispatch system, auto insurance SaaS solutions, and user interfaces through the implementation of multimodal AI capabilities.

According to the company’s statement, the integration is expected to improve policy matching accuracy by 40% in its auto insurance operations while reducing customer acquisition costs for renewals by up to 70%. This initiative comes as the company maintains revenue growth of 24% over the last twelve months, though InvestingPro analysis indicates challenges with profitability and operating margins.

For auto services, SunCar claims the redesigned dispatch system will reduce average response times from 30 minutes to under 5 minutes. The company also projects a 35% boost in service customer conversion rates through improved predictive maintenance accuracy.

The collaboration will also impact marketing operations, with SunCar stating that AI-generated marketing materials will reduce content production time from 7 days to 4 hours and lower costs by more than 70%.

By 2026, SunCar anticipates its intelligent dispatch system will cover approximately 80% of its national service network, while customer retention for its auto insurance SaaS platform is projected to reach 90%.

SunCar, founded in 2007, operates cloud-based platforms connecting drivers with auto services and insurance options through a network of sales partners in China.

The information in this article is based on a press release statement from SunCar Technology Group Inc.

In other recent news, SunCar Technology Group Inc. has announced several significant developments. The company has decided to invest up to $10 million in major cryptocurrencies, focusing on those anticipated to benefit from the growth of Real-World Asset tokenization. This move is informed by a report from Ripple and Boston Consulting Group, which projects the RWA market could reach $19 trillion by 2033. Additionally, SunCar has expanded its strategic partnership with electric vehicle manufacturer NIO Inc., a relationship that began in 2020. This expanded collaboration follows the upgrade of SunCar’s Anji Cloud Service Center in late 2023, which now offers more detailed and customized auto insurance services to NIO vehicle owners. These recent developments highlight SunCar’s strategic moves in both the cryptocurrency and automotive sectors.

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