DEVELOPING A DATA-DRIVEN ARCHITECTURE FOR IMPLEMENTING AI-ENABLED DYNAMIC PRICING STRATEGIES IN THE AUTOMOTIVE INDUSTRY

Abstract

In the Automotive Industry, dynamic pricing is used a lot to make the most money and hold off the competition. The Automotive industry is using AI to build a data-centric framework that will allow dynamic pricing. This research will look at how they are doing it. Automakers can find out about how customers act, how the market is changing, and how competitors plan to beat them by using complicated formulas and strict data collection methods. The aim of this research is to analyze how dynamic pricing protects prices in various industries, with a particular focus on its application in the automotive industry. In addition, the research will discuss about data-driven design approaches incorporating with artificial intelligence (AI), mainly how these technologies could be used to improve pricing strategies by automating choices and letting prices adjust based on the market. Important things like how to use market trends to our advantage, gather and analyze data, and understand how customers behave, and merchandise sales are the focus areas of the paper. As part of the project, AI could also be used to improve pricing methods. Some of these are prediction analytics, machine learning, and reinforcement learning. We can figure out how to make the most money and guess what prices will be in the future by using algorithms that look at past price data. Finally, the study shows that price strategies that are driven by AI and design that is driven by data can have a big impact on the automotive industry. Businesses in the Automotive industry might be able to boost competition, new ideas, and customer trust by using dynamic pricing systems and staying honest all the way through.