Xigem Technologies (CSE:XIGM) believes it is ideally positioned to benefit from the adoption of digital technologies in the growing used car market following its acquisition of EchoDigital, its AI-powered automotive shopping platform, last year.
The Toronto-based technology provider pointed to estimates from Gitnux that show by 2026 that 10% of cars sold in the US and Europe may be through digital platforms that use AI and nearly 20% of used car transactions may be completely digital.
The Gitnux estimates also showed that AI use in the global automotive industry is set to grow at a compound annual growth rate of 24.5% between 2020 and 2026.
Further, 20% of used car transactions may be completely digital by 2035.
Xigem highlighted that EchoDigital has delivered proven results in the automotive sales sector.
The Software-as-a-Service (SaaS) platform uses a proprietary AI to generate leads from traditional sources. It assesses the lead to match it with the most suitable customer service/sales representative (CSR) to complete the sale.
“EchoDigital may be readily scalable, customizable and applicable to almost any CSR-dependent sales system in a range of industry verticals, with possible application in the company's other technologies,” Xigem said in a statement.