Politics and the Automotive Industry – Can AI help?
I came across a new term the other day, introduced to me by one of our investors: “Frictional Unemployment.” I asked her: “What do you mean?”
She explained: “Well, when AI automates 100% percent of someone’s job, and then that person must find a different job, we call that frictional unemployment. For example: If AI can write a report better, cheaper, and faster than a human, there’s a good chance of frictional unemployment.
But what if there was a way to automate away the boring, repetitive part of the report writing, and keep humans in the loop?
The investor and I decided to look at this concept in the context of politics and a changing administration in the US. There’s something new coming down the pike every day as this new administration prepares to take the reins from the Biden Administration. Many of these new ideas, policies, or rulings affect the Automotive Industry.
What if there was an AI Assistant, monitoring everything new coming out? Or even alerting you BEFORE it came out – like a proposed bit of legislation? The AI could do the dirty work for you, without causing “frictional unemployment.” I mean, when it comes down to it – who really wants to go around, scouring the Internet for some hidden piece of legislation that may or may not affect the Automotive Industry?
- Automated Information Gathering – AI-powered tools can automatically crawl government websites, legal databases, and news platforms to extract information about proposed, pending, or newly enacted legislation. Natural Language Processing (NLP) algorithms can monitor and alert analysts about updates in specific legislation or relevant keywords associated with their industry. AI can also consolidate information from multiple sources into one centralized dashboard for easier analysis, saving analysts hours of manual searching.
- Legislative Text Analysis – AI tools like large language models can summarize lengthy legal texts into concise overviews, highlighting key sections that pertain to the analyst’s industry. NLP algorithms can extract critical topics, terms, and phrases (e.g., “automotive safety standards,” “carbon emissions”) that indicate how legislation might impact specific areas. Of course, AI can also analyze commentary or news articles related to the legislation to gauge public and industry sentiment.
- Predicting Impact – Machine learning models can analyze historical data to predict how similar legislation has affected the industry in the past and come up with trend analyses. AI tools can simulate different outcomes based on the enactment of proposed laws, offering forecasts on variables like costs, compliance requirements, or market changes. AI can generate tailored reports indicating how various provisions of the legislation could affect supply chains, operations, or finances – to help heads of industry operations get ahead of the game.
- Competitor and Stakeholder Insights – AI can scan the internet for statements or actions taken by competitors in response to legislation, offering insights into potential industry trends. AI can identify policymakers, lobbyists, or advocacy groups influencing the legislation, enabling analysts to track their statements and priorities. AI might also be able to generate responses when the public or industry professionals are asked to weigh in on a certain topic.
- Improved Collaboration and Reporting – AI platforms like Humaxa that were built specifically for the Automotive Industry, or custom-built solutions, can display data visually, making it easier for teams to collaborate on legislative analysis. Within this platform, AI can draft industry-specific reports summarizing potential impacts, key provisions, and make strategic recommendations.
- Ongoing Compliance Monitoring – AI can track when pending legislation transitions to enacted law and provide reminders for compliance deadlines while AI-powered compliance tools can identify areas of risk and suggest actions to mitigate the impact of new regulations.
Let’s face it: No one loves plodding through labor-intensive tasks, looking for needles in haystacks. By automating labor-intensive tasks, AI frees automotive industry analysts to focus on strategic interpretation and decision-making, ensuring their organization stays ahead of regulatory changes. No frictional unemployment needed at all!
Would you like help bringing such ideas to life?
Carolyn Peer
CEO/Co-founder, Humaxa
