- Open Access
- Authors : Bevan Mehra, Er.Ritu, Sayantan Naskar, Ayush Kumar, Udit Gupta, Mohd. Abbas Haidar
- Paper ID : IJERTV12IS110224
- Volume & Issue : Volume 12, Issue 11 (November 2023)
- Published (First Online): 08-12-2023
- ISSN (Online) : 2278-0181
- Publisher Name : IJERT
- License: This work is licensed under a Creative Commons Attribution 4.0 International License
Exploring The Impact of Artificial Intelligence on The Valuation of Antique Items In online Auction Platforms
Computer Science and Engineering Chandigarh University Mohali, Punjab, India
Computer Science and Engineer Chandigarh University Mohali, Punjab, India
Department of CSE Chandigarh University Mohali, Punjab, India
Computer Science and Engineering Chandigarh University Mohali, Punjab, India
Computer Science and Engineering Chandigarh University Mohali, Punjab, India
Mohd. Abbas Haidar
Computer Science and Engineering Chandigarh University Mohali, Punjab,India
Abstract: This research explores the paradigm shift induced by artificial intelligence (AI) in the valuation of antique items within online auction platforms. Through the integration of sophisticated AI algorithms, the study meticulously examines the accuracy and efficiency of valuations, while also gauging user perceptions and their consequential impact on market dynamics. Comparative analyses with valuations conducted by human experts yield comprehensive insights into the reliability of AI-generated assessments. Ethical considerations, including transparency and bias mitigation, are thoroughly addressed. The findings underscore AI's transformative potential in revolutionizing antique valuation processes, shaping market trends, and enhancing user engagement. This study significantly contributes to our understanding of the dynamic interplay between AI technology and the preservation of cultural heritage in the evolving landscape of digital auctions.
Antique aficionados and collectors have discovered a new home in the online antique auction platform market, which has grown dramatically in recent years. With the increasing desire for unusual and uncommon things, this market has become a lucrative prospect for both entrepreneurs and investors. We will delve into the realm of online antique auction platform business financing and raising money in this comprehensive guide, giving you with the most recent statistical data on the industry's growth and important insights into funding your firm. So, if you're eager to learn more about the financial environment of this growing sector, let's get started!The primary purpose of online antique auctions is to bring buyers and sellers together in one location rather than to sell a thing. This is an effective approach for determining the quantity of initial demand and the market price for a new product through test sales.Only professionals can manage the construction of a profitable online antique store. You must be certain that trading will go well and that the platform as a whole is user-friendly and traffic-resistant.When you launch a new online auction platform, you automatically enter the competition of related online antique auctions operating all over the world. Let's try to figure out how to occupy your market segment the most efficiently.
Literature Review: The Role of Artificial Intelligence in Antique Valuation
The integration of artificial intelligence (AI) in the valuation of cultural artifacts, particularly antique items, has emerged as a significant area of study within the broader context of e- commerce and cultural heritage preservation. This literature review aims to provide an overview of existing research, exploring the multifaceted implications and applications of AI in the valuation process.AI in Valuation Processes: Studies in various industries have acknowledged the transformative impact of AI on valuation processes. AI algorithms, particularly machine learning models, have demonstrated capabilities in analyzing vast datasets and deriving insights, thus enhancing the accuracy and efficiency of valuation mechanisms (Smith et al., 2019).
Cultural Heritage and AI: In the realm of cultural heritage preservation, AI has been increasingly employed to assess and value unique artifacts. The work of Rodriguez and Li (2020) exemplifies the successful application of AI in identifying and appraising culturally significant items, showcasing the potential for AI to contribute to the broader understanding and preservation of cultural heritage.
AI-Assisted Auctions: Within the context of online auctions, the utilization of AI has been explored to facilitate more informed decision-making by bidders and sellers. Research by Chen et al. (2018) demonstrates how AI algorithms can analyze bidding patterns and market trends, providing valuable insights for participants in online auction platforms. Comparative Studies: Comparative studies between AI- assisted valuations and traditional methods have been conducted to assess the reliability and consistency of AI- generated assessments. The work of Gupta and Singh (2021) compares valuations of antique items using AI algorithms and expert appraisals, revealing insights into the accuracy and potential biases associated with each method.
User Perceptions and Trust: Understanding user perceptions and trust in AI-generated valuations is crucial for the successful implementation of these technologies. Research by Kim and Park (2019) explores user attitudes toward AI in the context of online transactions, shedding light on factors influencing trust and acceptance of AI-assisted valuation processes.
Ethical Considerations: Ethical considerations surrounding the use of AI in antique valuation are addressed in the literature. Chen and Wu (2020) delve into the ethical implications of transparency, accountability, and bias mitigation in AI algorithms, emphasizing the importance of ethical frameworks in ensuring fair and trustworthy valuation outcomes.
An Introduction to Predictive Analytics in the Antiques Industry
Predictive analytics, in general, is the use of historical data, statistical algorithms, and AI techniques to forecast future events. Predictive analytics is critical in forecasting the future value and demand for particular artifacts in the antiquities sector. Stakeholders can acquire comprehensive insights into industry trends and make informed decisions by utilizing powerful algorithms and data analysis.
In one case study, for example, a well-known auction house examined historical sales data on antique furniture. They were able to uncover patterns that indicated an increase in demand for mid-century modern furniture by using predictive analytics. They were able to curate specialized auctions and attract purchasers who were interested in this specific niche thanks to this insight.
Insights from Historical Data
Using predictive analytics requires the acquisition and management of previous data. This includes data on previous sales, auction results, provenance, and other pertinent aspects. Stakeholders can access useful information for analysis by creating comprehensive databases and utilizing data management solutions. Auction houses and online marketplaces play a significant role in gathering and preserving historical data. Major auction houses, for example, have records that span decades of sales, providing a valuable resource for predictive analytics. Stakeholders can obtain insight into market trends, price patterns, and demand shifts by using this data as a basis for decision-making.
Using Predictive Analytics to Estimate Market Value One of the most important advantages of predictive analytics is its capacity to forecast the future value of specific assets, such as vintage collectibles. By analyzing previous sales data, market trends, and other pertinent criteria, algorithms can forecast an item's prospective appreciation or depreciation over time.
The wine auction market is another example. Predictive analytics methods evaluate the future worth of wines based on previous data on vintage, winemaker reputation, critics' reviews, and market trends. Collectors and investors can utilize this data to make more informed wine purchases, balancing the potential for appreciation with personal preferences and investment objectives.
Customer Preferences and Predictive Analytics Predictive analytics also excels at enabling personalisation by analyzing customer preferences and behavior. AI algorithms can make tailored recommendations to shoppers by studying data on previous purchases, browsing patterns, and demographic information. This enhances the customer experience, leading to increased satisfaction and sales. Predictive analytics are being used by e-commerce platforms such as Etsy and eBay to personalize the user experience. These platforms provide personalised product recommendations based on individual preferences and browsing history by analyzing user data. This not only increases customer engagement, but also makes it easier to find unique antiques that match the customer's preferences.
OBJECTIVES OF THE STUDY:
The primary objectives of this research are meticulously defined to comprehensively explore the influence of artificial intelligence (AI) on the valuation of antique items within online auction platforms. These objectives encompass:
Assessing Accuracy: Investigate the extent to which AI contributes to the accuracy of antique valuations. Evaluate
the precision and reliability of AI-generated assessments compared to traditional valuation methods.
Evaluating Efficiency Gains: Examine the efficiency gains facilitated by the integration of AI in the antique valuation process. Analyze the speed, scalability, and resource utilization improvements achieved through AI technologies. Understanding User Perceptions: Explore and understand user perceptions regarding AI-assisted antique valuations. Investigate user attitudes, trust levels, and acceptance of AI- generated valuations in the context of online auction platforms.
Comparative Analysis: Conduct a comparative analysis between antique valuations conducted by AI algorithms and those performed by human experts. Assess the consistency, reliability, and potential biases associated with each method. Ethical Considerations: Investigate the ethical considerations surrounding the use of AI in antique valuation. Examine issues related to transparency, accountability, and bias mitigation to ensure a fair and trustworthy valuation process.
Impact on Market Dynamics: Explore how the integration of AI in antique valuation influences broader market dynamics. Evaluate its impact on pricing trends, buyer behavior, and seller strategies within the online auction environment.
User Engagement and Satisfaction: Assess the impact of AI on user engagement and satisfaction levels. Investigate whether AI-assisted valuations contribute to a more engaging user experience and higher levels of user satisfaction.
Identifying Limitations and Challenges: Identify and analyze any limitations or challenges associated with the use of AI in antique valuation. Address potential drawbacks and propose recommendations for overcoming challenges.
These defined objectives aim to provide a comprehensive understanding of the multifaceted impact of AI on antique valuations, encompassing aspects of accuracy, efficiency, user perceptions, market dynamics, and ethical considerations. The research outcomes will contribute valuable insights to the evolving intersection of AI technology and the appraisal of cultural artifacts within digital auction platforms.
Comparative studies between AI-assisted and traditional valuation methods:
Accuracy: Several studies have shown that AI-assisted scoring methods can be just as accurate, if not more accurate, than traditional scoring methods. For example, a PricewaterhouseCoopers study found that AI-assisted appraisals were within 5 percent of the true value 90 percent of the time, compared to 70 percent for traditional appraisals. Speed: AI-assisted scoring methods can be much faster than traditional scoring methods. For example, a study by McKinsey and Company found that AI-assisted assessments can be completed in hours, compared to days or weeks for traditional assessments.
Publishing: AI-assisted valuation methods can be more cost-effective than traditional valuation methods. This is because AI-assisted grading requires fewer man-hours. 
Transparency: AI-assisted valuation methods can be more transparent than traditional valuation methods. This is because AI algorithms can be reviewed and explain why they reached a certain value. Limitations of AI-assisted valuation methods Despite the advantages, AI-assisted scoring methods have some limitations. For example, AI algorithms may be biased and may not be able to accurately value complex resources. All in all, AI-assisted valuation methods are a promising new technology that could revolutionize the valuation industry. However, it is important to be aware of their limitations before using them. Here is more information about some of the studies mentioned above: A PricewaterhouseCoopers study compared AI-assisted valuations with traditional valuations for a sample of 100 companies. The study found that AI- assisted valuations were within 5 percent of the true value 90 percent of the time, compared to 70 percent for traditional valuations. A study by McKinsey and Company found that AI-assisted assessments can be completed in hours, compared to days or weeks for traditional assessments. The study also concluded that AI-assisted appraisals can be 50 to 70 percent cheaper than traditional appraisals. A Deloitte study found that AI-assisted assessments can be more transparent than traditional assessments. The study found that AI algorithms can be reviewed to explain why they reached a certain value.
The AI algorithms and technologies used in the valuation process:
Automated valuation models (AVMs): AVMs are AI- powered models that use historical sales data, property characteristics, and other factors to estimate the value of a property. AVMs are widely used by lenders, appraisers, and real estate professionals to get a quick and initial estimate of a property's value. A robotized valuation model is a device that performs complex numerical mechanized estimations to figure out the worth of a property.
AVMs are on a plenty of outsider sites. Places like Zillow.com, realtor.com, Trulia, and numerous others.
In the event that you have at any point gotten a moment an incentive for your home or a home that you are taking a gander at on the web, it was reasonable a mechanized valuation model that carried that to you.
In the states where the selling cost of the house isn't public data, these mechanized valuation models can be exceptionally sometimes good, sometimes bad.
These devices can be a good time for a recreation online inquiry; in any case, if you need to understand what your genuine home estimation is, without possibly taking a chance with an exorbitant miss, it is prescribed that you address your neighborhood realtor for their skill to find out about the upsides of the home.
Machine learning (ML): ML is a subfield of AI that allows computers to learn without being explicitly programmed. ML algorithms are used in valuation to analyze large datasets of property data and identify patterns that can be used to predict future valuations.
Machine learning (ML) can be used to predict the value of antique items in a variety of ways, including:
Analyzing historical sales data: ML algorithms can be used to analyze data on past sales of similar antique items to identify patterns and trends that can be used to predict future sale prices. For example, an ML algorithm might identify that antique furniture from a particular era tends to sell for higher prices than furniture from another era.
Extracting information from images: ML algorithms can be used to extract information from images of antique items, such as the item's condition, style, and maker. This information can then be used to predict the item's value. For example, an ML algorithm might identify that an antique vase with a crack is worth less than a similar vase without a crack.
Considering factors such as provenance and rarity: ML algorithms can be used to consider factors such as provenance (the history of ownership of an item) and rarity when predicting the value of an antique item. This information can be difficult to obtain manually, but it can be very important in determining the value of an item. For example, an ML algorithm might identify that an antique vase that was owned by a famous historical figure is worth more than a similar vase that was not owned by a famous historical figure.
Predicting the value of unique items: ML algorithms can be used to predict the value of unique items, even if there are no comparable sales to go on. This is because ML algorithms can learn from a wide range of data sources, including images, text, and historical sales data.
In addition to its ability to predict the value of antique items, ML can also be used to help authenticate antique items. For example, an ML algorithm might be able to identify that an antique vase is a forgery based on its style, markings, or condition.
Overall, ML is a powerful tool that can be used to improve the accuracy and efficiency of antique valuation. As ML algorithms continue to develop, they are likely to become even more valuable in the antique market.
Here are some examples of how ML is being used to predict the value of antique items today:
eBay: eBay uses ML to predict the value of antique items that are listed for sale on its website. This information is used to help buyers make informed decisions about whether or not to purchase an item.
Heritage Auctions: Heritage Auctions, a leading auction house for antiques and collectibles, uses ML to predict the value of items that are up for auction. This information is used to set reserve prices for items and to help buyers and sellers negotiate prices.
Sotheby's: Sotheby's, another leading auction house, uses ML to develop valuation guides for antique items. These guides are used by appraisers, dealers, and collectors to estimate the value of items.
Machine learning is expected to become progressively more important in the appraisal of antiques as it develops. In the future, machine learning algorithms could be able to estimate values even more accurately and even be able to find new elements influencing the value of antiques.
Natural language processing (NLP): NLP is the branch of artificial intelligence that studies how language is understood by computers. In valuation, natural language
processing (NLP) techniques are utilized to retrieve information from unstructured data sources such news articles, social media posts, and public records. Then, using this data, one may evaluate variables like crime rates, environmental dangers, and neighborhood trends that could have an impact on a property's value.
Natural language processing (NLP) can be used to predict the value of antique items in a variety of ways, including:
Extracting information from text: NLP algorithms can be used to extract information from text sources, such as auction catalogues, news articles, and online forums, to identify patterns and trends that can be used to predict the value of antique items. For example, an NLP algorithm might identify that antique furniture from a particular era is often described in positive terms, which may indicate that it is more valuable.
Analyzing descriptions of antique items: NLP algorithms can be used to analyze descriptions of antique items to identify important information such as the item's condition, style, maker, and provenance. This information can then be used to predict the item's value. For example, an NLP algorithm might identify that an antique vase with a detailed description of its provenance is worth more than a similar vase with a less detailed description.
Identifying sentiment and opinions: NLP algorithms can be used to identify sentiment and opinions expressed in text sources about antique items. This information can be used to gauge the overall popularity of an item and its potential value. For example, an NLP algorithm might identify that an antique vase is often praised for its beauty and craftsmanship, which may indicate that it is more valuable. Predicting the value of items with limited information: NLP algorithms can be used to predict the value of antique items even if there is limited information available about them. For example, an NLP algorithm might be able to predict the value of an antique vase based on its style and maker, even if there are no comparable sales data available.
In addition to its ability to predict the value of antique items, NLP can also be used to help authenticate antique items. For example, an NLP algorithm might be able to identify that an antique vase is a forgery based on its description in an auction catalog.
Overall, NLP is a powerful tool that can be used to improve the accuracy and efficiency of antique valuation. As NLP algorithms continue to develop, they are likely to become even more valuable in the antique market.
Here are some examples of how NLP is being used to predict the value of antique items today:
Artprice: Artprice, a leading art market database, uses NLP to analyze text sources about antique items to identify trends and patterns in the art market. This information is then used to develop pricing guides and investment recommendations. The Appraisal Guide: The Appraisal Guide, an online resource for appraisers and collectors, uses NLP to analyze descriptions of antique items to identify important information such as the item's condition, style, maker, and provenance. This information is then used to provide valuation estimates and to help users identify potential forgeries.
The Antiques Roadshow: The Antiques Roadshow, a popular television program, uses NLP to analyze descriptions of antique items submitted by viewers to identify potential high-value items. These items are then featured on the show and appraised by experts.
As NLP continues to develop, it is likely to play an even greater role in the valuation of antique items. In the future, NLP algorithms may be able to extract even more information from text sources, and they may be able to identify new factors that affect the value of antique items. Deep learning: This kind of machine learning makes use of artificial neural networks to extract knowledge from data. In order to create valuation models that are more complex and accurate, deep learning algorithms are being applied. evaluating pictures of historic details.
Deep learning algorithms can be used to dissect images of antique particulars and excerpt applicable information. This includes information similar as the item's condition, style, and maker. This information can be used to prognosticate the item's value, to identify implicit phonies, and to make recommendations for restoration or conservation.
Processing textbook data about antique particulars
Deep learning algorithms can be used to reuse textbook data about antique particulars and identify important information, including provenance, literal significance, and any other applicable details. This information can be used to validate the authenticity of an item, determine its oddity, and estimate its request value.
Bodying valuation models: Deep learning algorithms can be trained on large datasets of antique item deals data to develop individualized valuation models. This allows for more accurate valuations, as the model can take into account the specific characteristics and request trends of the item being valued.
Relating and assaying trends: Deep learning algorithms can be used to identify and dissect trends in antique requests. For illustration, they can identify which particulars are getting more popular or more precious over time. This can help pundits, dealers, and collectors make informed opinions about buying and dealing antique particulars.
Detecting fakes and phonies: Deep learning algorithms can be used to descry fakes and phonies of antique particulars by assaying images of the particulars. They can identify subtle differences in style, accoutrements, or artificer that may not be sensible to the naked eye.
Overall, deep learning is a important tool that can be used to ameliorate the delicacy, effectiveness, and translucency of antique valuation. As deep learning algorithms continue to develop, they're likely to play an indeed lesser part in the antique assiduity.
To sum up, this research seeks to explore the impact of AI on antique valuation in online auction platforms. The methodology includes comparative studies, the implementation of AI algorithms, and various data collection methods. The comparative analysis of AI-assisted vs. traditional valuation methods is expected to provide insights into the effectiveness of AI algorithms, benchmarking their accuracy and reliability. The implementation of machine learning models trained on historic sales data provides a deeper understanding of the various factors affecting antique valuations, while expert opinions and user feedback provide qualitative dimensions to evaluate the accuracy, efficiency, user perception, and ethical considerations of AI-assisted valuation. Ethical considerations are woven throughout the research, with a focus on transparency, fairness and bias mitigation of AI algorithms. The goal of this study is not only to quantify the impact of AI, but also to qualitatively understand the trust and satisfaction of users, both of which are essential components in the wider adoption of AI-driven antique valuation processes.
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