"Predicting Car Prices with AI"…Hyundai Capital, First Korean Financial Company to Win International AI Conference Award

Awarded the 'Innovative Artificial Intelligence Application Prize' at the International AI Conference

[Asia Economy Reporter Minwoo Lee] A paper on the development of a model that predicts car prices using artificial intelligence (AI) by Hyundai Capital has been recognized at a world-renowned AI academic conference.

On the 13th, Hyundai Capital announced that its paper titled 'Development of a Car Price Prediction Model Using AI Technology,' presented at the International Conference on Artificial Intelligence held in Washington D.C., USA, on the 11th (local time), received the 'Innovative AI Applications Award (IAAI).'

Founded in 1979, the International Conference on Artificial Intelligence is the world's most prestigious AI academic conference where research papers on AI achievements worldwide are presented. This is the first time a domestic financial company has received the Innovative AI Applications Award, established in 1989.

The awarded paper by Hyundai Capital includes the implementation of an algorithm that automatically controls abnormal transaction data in the used car market using deep learning techniques. It also explains that by constructing clusters (units of data sets with similar characteristics) for different types of vehicle price depreciation, the model significantly improved price prediction accuracy to a level applicable even to new car models with limited transaction data. This model is currently utilized within the Hyundai Capital application (app) for ▲checking the price of one's own car ▲checking prices provided by external partners ▲used car evaluation, among other functions.

In particular, Hyundai Capital emphasized that it enhanced prediction accuracy by consulting Professor Jaecheol Kim of the AI Graduate School at the Korea Advanced Institute of Science and Technology (KAIST) during the development of the new AI model.

A representative from Hyundai Capital’s Risk Modeling Team, who developed the AI model, said in their award acceptance remarks, "We plan to continue applying advanced AI technologies not only to vehicle price prediction but also to various areas such as credit evaluation, loan screening, and fraud prevention."

Hyundai Capital Risk Modeling Team, the first domestic financial company to receive the 'Innovative AI Application Award (IAAI)' from the International Association for Artificial Intelligence
Team members are taking a commemorative photo with Karen Haig, Chair of IAAI (second from the right). (Photo by Hyundai Capital)

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