Auction Insights with Artisio

AI is making waves and making headlines, but what does it mean for the auction industry?

Unless you’ve been living under a rock, chances are you’ve heard whisperings about the rise of Artificial Intelligence in recent months. From AI-generated artworks to headlines about ChatGPT, more and more industries are integrating AI into their operations in order to improve communications, benefit productivity and more.

And the groundswell of interest in AI shows no signs of abating. In fact, Forbes reports that AI is expected to grow more than 37% every year between now and 2030.

One industry in which AI is certainly changing the game is auction management. Auction houses around the world are discovering the benefits of investing in the latest cutting-edge AI technology.

But what operational advantages are there to be gained? Let’s take a closer look.

Automated auction tasks

AI is often used to tackle the monotonous tasks that in-house teams don’t have the time or patience for. For auction houses, this means there is potential for AI to automate and optimise key responsibilities, such as cataloguing, item valuation, registration and payment processing. In other words, essential data entry that would otherwise be time-consuming and often at risk of human error.

By analysing historical auction data, market trends and user preferences, AI can be used to streamline auction administrative processes to improve overall efficiency.

Informed decision making

It’s unrealistic to expect staff to analyse huge reams of historical data about sales and trends, but AI systems can do just that in minutes. This opens up a whole new world of data-driven decision making for auction houses, providing inventory recommendations, pricing strategies, marketing routes and more – all based on reliable facts and figures.

Through AI, auction houses can make data-based decisions to identify emerging trends, forecast demand, stay competitive and maximise outcomes.

Intelligent bidding

Analysing auction data can be particularly beneficial when it comes to bidding. AI algorithms can explore historical and real-time bidding behaviours to assist in more informed bids and recommendations.

Last year, a study presented at the 23^rd ACM Conference on Economics and Computation explored the relationship between AI and auction designs. Researchers found that making use of AI algorithms made for faster bids and greater competitiveness.

Tailored customer engagement

AI data isn’t only useful at the bidding stage of auctions. It can also be used to get to know customers, leveraging data to offer personal recommendations for items they might be interested in. AI can suggest items that align with user interests to drive higher bids.

As Yair Zisling, Chief Business Officer at Artbrain, explains,

“Artificial Intelligence arms auction houses with powerful tools for growth. Customer data can be matched with auction house inventory in minutes, enabling personalised communications to be sent that are not only engaging but are proven to convert. This kind of task would take weeks of manual effort within marketing teams but it is light work for our machine learning engine.”

Even customer service communications can be enhanced and improved through the use of AI. Chatbots and virtual assistants can provide instant support and detailed answers to frequently asked questions, freeing up human team members to offer more tailored support.

Mass market research

The ability of AI solutions to provide insights based on large quantities of data is particularly powerful when it comes to marketing. Auction houses can conduct mass market research of trends, social media data and user preferences to identify what customers are looking for.

Analysing social media data and online conversations about collectables and artworks makes it possible to gain valuable insights around popular categories, potential bidders, emerging markets and more.

Recently, food giants Danone used AI social data to study their audience’s hobbies, interests and preferences. As a result, they say their reach increased by 20% and engagement by 35%.

Cybersecurity and fraud detection

With the vast majority of industries becoming increasingly digitised, cybersecurity concerns are on the rise. In fact, Astra Security reports that 2023 will involve around 33 billion data breaches.

AI can be used to mitigate fraud and ensure auction integrity by analysing user habits and information. Through the identification of suspicious bidding patterns, auction houses can detect potential fraudsters and gather necessary intelligence to enhance security measures and protect bidder data.

A bright future with AI and Artisio

With AI developing all the time, its role in auctioning is full of potential. From advancements in computer vision for item recognition to natural language processing for improved customer interactions, the future is exciting and full of possibilities.

This is especially true with innovators like Artisio leading the industry. As Artisio CEO and Co-Founder, Berdia Qamarauli, says,

“Our mission has always been to introduce the auction industry to new and effective technologies. We pioneer the latest innovations by incorporating AI features into our solutions, creating an ecosystem that supports all kinds of auction management.

“Our comprehensive auction management solution handles all aspects of your business under one platform, from front-to-back sales to online payments and inventory.”

Find out more about Artisio AMS today by booking a demo

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On the face of it, auctions are relatively straightforward: bids are made, the hammer falls and a transaction is completed. Simple. But auctions have been around for centuries, and in that time the industry has been anything but dull. In fact, there have been some pretty spectacular sales, successes and controversies to pick through. Not only that but we have also seen new auction formats and models develop and thrive.

From shredded paintings to countries under the hammer, here are some of the most incredible, exciting and fun facts about auctions.

Auctions date back as far as 500 BC

Auctions have been part of society millennia – at least 2,523 years to be more specific. Greek historian Herodotus documented accounts of auctions taking place in Babylon, which was once the largest city in the world. The Babylonian empire dissolved in time, becoming modern day Iran, so we can only imagine what trinkets and treasures may have gone under the gavel back when civilization was quite different.

Da Vinci’s Salvator Mundi is the most expensive (and controversial) painting ever auctioned

Produced in the 1500s, Leonardo Da Vinci’s Salvator Mundi (“Saviour of the World”) famously sold in 2017 for $450.3 million. This remains the highest fee ever paid for a work of art at auction at time of writing. However, the attention this garnered caused the painting to come under intense scrutiny, with many highlighting its poor condition, questionable quality and unverified history.

The painting had previously sold in 2005 in New Orleans, and had to be restored extensively due to having been overpainted and inadequately restored in the past. This led some to question how much of the current painting was actually created by Da Vinci’s hand.

Debates surrounding the painting still continue, as it has not been seen publicly since it was sold. It’s current whereabouts are unknown, though it is thought to have been purchased by the crown prince of Saudi Arabia, Mohammed bin Salman.

The longest ever single lot sale lasted 75+ minutes and included over 100 bids

In October 2020, a 700 year-old work by renowned Yuan-dynasty master painter Ren Renfa sold for the equivalent of US$306.6 million. The extraordinary painted scroll, titled Five Drunken Princes Returning on Horseback, marks the longest bidding war in auction history.

The bidding itself last for more than 75 minutes and included over 100 bids. Competition was fierce for this masterpiece of Asian painting, and to date it remains to most valuable work sold at auction in Asia.

A man once tried to auction off the entire country of New Zealand

Friendly rivalry between Australia and New Zealand is nothing new. But it reached a new level in 2006 when one Australian man listed the entire country of New Zealand for sale, with a starting bid of one cent. Bidding eventually reached $1,300 – a steal for such a picturesque country – but the auction was removed for violating eBay’s terms and conditions before any sale could be finalised.

The oldest auction house can be found in Stockholm

Founded in 1674 by Baron Claes Rålamb, Stockholms Auktionsverk (Swedish for “Stockholm’s Auction House”) is the oldest auction house in the world. In its long lifetime, the site has been used by esteemed guests like Sweden’s King Charles XI – who earned 900 silver coins for some hunting rifles – and King Gustav III. Gustav purchased Rembrandt’s Kitchen Maid, while playwright August Strindberg purchased a number of books during his visit to Stockholms Auktionsverk.

Banksy set records with his famous shredded painting

You may remember the infamous footage of Banksy’s Love is in the Bin back in 2021. Seconds after the hammer fell at Sotheby’s in London, the painting of Girl with Balloon sank into a hidden shredder located in the bottom of the ornate Victorian frame, and was irreparably destroyed.

Despite this, the piece still sold for an eye-watering £18,582,000. This broke records as the highest ever price for a street artist’s work, while also selling for many times its guide price. It also raised a lot of questions about elitism and commercialisation in art.

Melting candles were once used to time auctions

Long before electricity, auctions in England saw auctioneers and bidders gather in a dark room with a single candle pinned to the wall. The auction would commence when the candle was lit, and would end the moment the candle melted around the pin and fell to the ground. At this point, the final bidder would be declared the winner.

Needless to say, this created an urgent and rather chaotic atmosphere for the bidding process. It also explains the origins of the term ‘flaming out’, where bidders are deemed to bid too high too early.

Auction houses have moved with the times

Although many of the world’s most famous auction houses are steeped in history and tradition, they have all had to adapt to changes as their sales move increasingly online. At Artisio, we are working closely with auction businesses around the globe to provide them with the tools to enable this transition and deliver the technical environment for growth.

From fully integrated inventory and logistics management to live and timed online auction streaming, online payment processing and sophisticated 3^rd party integrations, Artisio’s front-to-back auction management software solution is at the cutting edge this intriguing industry.

Find out more about Artisio AMS today by booking a demo

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Venduehuis der Notarissen is one of the world’s most highly respected auction houses. Based at The Hague in the Netherlands, it has been responsible for the sale of some of art’s most famous and important pieces over the course of its 210 year history. Whether it is the sale of the “Girl with a Pearl Earring” by Johannes Vermeer in 1881 or the spectacular Panorama Mesdag by Hendrik Willem Mesdag, Venduehuis has been the stage for art and collectors to come together.

Founded during the rule of Napoleon Bonaparte when the Kingdom of Holland was subject to French law, the institution has endured for more than two centuries. Today, it remains the only auction house in The Netherlands still owned by the local association of notaries. However, its clientele stretches far beyond The Hague with a range of national and international clients regularly bidding from across 80 countries – through both live and online auctions.

Innovation, excellence and a new auction management software solution

Steeped in history, Venduehuis der Notarissen is nevertheless an institution that is forward-thinking and moves with the times. Indeed, it recently posted this to social media during the celebration of its 210^th year:

“We are proud to be a modern auction house that attributes its success not only to the consistent high quality of art objects on offer, but also to our strong eagerness to innovate, the expertise of our knowledgeable art specialists, and the trusting relationships with our clients.”

Nowhere is this progressive approach clearer than in the auction house’s latest digital project with Artisio AMS.

In September 2022, Venduehuis identified the need for a new front-to-back auction management software to replace its existing legacy system. In an increasingly digital world, the team at Venduehuis recognised that an integrated software solution was essential to provide a seamless user journey for their clients. From initial engagement to sale registration to transfer of funds, every step of the auction process has to be intuitive and easy, in order to meet the needs of online collectors and buyers.

From this brief the Artisio AMS team has set about building and configuring a solution designed to manage front-to-back sales management processes, handle online payments and manage inventory. In addition, the new auction management software solution must have the capabilities to support the hosting of webcasts and timed auctions, as well as integrate 3^rd party accounting systems and marketing tools.

The completed solution is set for completion and delivery in early 2023, incorporating all of Venduehuis’s historical data and imagery as a valuable archive of assets.

Ready to build an auction management solution fit for the future?

Artisio AMS can help you transform the way you do business and develop a solution that is perfectly tailored to your needs.

Find out more by booking a demo today.

The circular economy is, finally, booming. Over the past two decades, the detrimental buy-use-discard process has hit our planet – and our economy – hard. Yet, with huge campaigns to raise awareness of the perils of this process everywhere we look, it’s quite reassuring to see the positive effects this is having on our buying habits, all in an effort to create both a more sustainable economy and world.

What Is The Circular Economy?

The circular economy was created as a sustainable economic model that deals with creating less waste by helping people understand the value of what they have and are able to pass onto others. This means that by purchasing things second-hand and at auction, you are doing your bit to create a more sustainable world.

The Circular Economy Model

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There are so many services, websites and apps around nowadays that encourage the purchase of second-hand items, and choosing to buy at auction is a pivotal method in which collectors can help eliminate the buy-use-discard process that so many retailers have stuck by for so long – a process that produces a shocking amount of global waste. Buying at auction means you are able to buy vintage, second-hand and one-of-a-kind products that mean so much more, knowing you are contributing to the circular economy, where together, we are able to extend the life cycle of a product through reuse, rather than throwing it onto a garbage heap that will damage our planet.

How Auction Businesses are Fostering The Circular Economy

The auction industry is making every effort to foster the circular economy by reselling items instead of letting them be sent for landfill. Essentially, they act as the main link between buyers and sellers.

Auction businesses cater to a wide range of industries, who sell liquidated, returned and excess inventory second, third and – at times – even fourth-hand to other companies. That’s not the only way the auction industry helps boost the circular economy; they also assist businesses and retailers sustainably and effectively clear a backlog of excess inventory items and by doing so, protect brand equity, all while minimizing any financial loss.

By adopting these processes, not only are they giving their customers what they want to buy, but they are also doing their part in making our economy more sustainable, with far fewer products once sold at auction ending up on landfill sites across the world.

Artisio’s Role In The Circular Economy

Auction management software solution pioneers, Artisio, have paved the way for processes that contribute to the circular economy, with an impressive list of clients that go that little bit further in order to ensure their processes are sustainable. BPI Auctions, Diger and BPA Pharma are perfect examples of companies from the industrial sector who sell liquidated, returned and excess inventory items on the B2B (business to business) secondary market.

Artisio also acts as the main powerhouse for auction businesses. The fact that it is auction management software means it can assist auction companies in accelerating auction business and creating automated processes to allow for quicker and more efficient auction sales. This, in turn, helps auction companies to add more frequent contributions to the circular economy, helping to stop waste production by reusing things like plants, machinery, industrial equipment and more. By helping auction companies sell their produce more quickly and also assisting them with their business processes, Artisio manages to directly contribute to the circular economy & Environmental Sustainability.

You may be wondering how Artisio accelerates the auction process. This is cleverly done by auction houses being able to store a comprehensive list of inventory items on their database for any future sales. Furthermore, both sellers and dealers have the option to submit their second-hand items for auction houses to sell. In cases such as these, Artisio acts as a platform where all of this data is collected. Automated processes means less paperwork – paperwork which would have otherwise taken up valuable time.

Lastly, Artisio is an active member of the Ellen MacArthur Foundation, a charity whose sole aim is to create a better, more thriving, circular economy for our world by eliminating waste and pollution, circulate products and materials and regenerate nature.

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Focusing on only one element of Artisio’s functionality is like using a Swiss Army knife exclusively as a bottle opener.

We’ve created ‘built-in’ solutions across the whole of the auction journey, from vendor consignment, Intelligent QR code-driven inventory, stock & asset solutions through to a full CRM system to help you manage your bidders and buyers, pre and post-auction.

Here we’ll highlight several Artisio features which will easily turn Artisio into the central hub for all your team activities:

1. QR Code Supported Stock Management

Artisio delivers a fresh approach to inventory management via QR code which makes our system faster and more automated.

Each function reduces manual process via quick scanning and helps Artisio users save resource time.

QR code functionalities are a quick and easy way to generate information about your inventory, manage catalogue and allow your customers to quickly find the information they need about the lots.

Thanks to QR codes and scanning, your stock management processes within Artisio is greatly simplified and can be executed quickly and accurately.

2. Smart Telephone Bid Management

Artisio offers intelligent telephone bidding functionality to help auctioneers support buyers who cannot attend an auction in person. Our smart script allows us to pair telephone bidders with clerks quickly and efficiently.

Artisio will automatically manage the allocation of clerks based on various criteria and bidder preferences ensuring that clerks and VIP bidders are always paired.

3. Easy customization

The Artisio technical infrastructure has been designed to be easily customisable to suit the individual requirements of a client or auction house. Artisio offers full data integration capabilities with 3^rd party providers via API, with the ability to create fully customisable sales, deliver a fully integrated stock management solution, manage vendor consignments and support client valuations via your website.

Artisio’s dynamic structure ensures it adapts and responds seamlessly to an individual auction businesses process. Artisio has the flexibility to fully adapt to any existing or new front to back requirements including any ERP system that needs to be integrated into a client’s internal processes.

Thanks to Artisio’s flexible and adaptable system, client customization requests can be understood at initial consultation and fulfilled upon delivery.

4. Install Artisio on client’s website

Artisio is 100% API based so it’s possible to connect and install buyer and vendor functionality directly onto your website.

Additionally, Artisio actively supports ‘My Account’ functionality, enabling buyers to log in and view their profiles, review their registrations, live bids, invoices and make payments.

On the vendor side, client accounts can be created to allow inventory and documents to be uploaded directly into Artisio’s stock management system. This portal also delivers settlement and payment solutions.

Connecting Artisio to your website provides your business with the tools to ensure faster, more secure payments and will cut down client processing time.

5. Easy integration with third-party software

Artisio is 100% API based, any functionality and data held within Artisio can be synchronized with any third-party software partner which supports API. Artisio offers full data exchange capabilities via API that allows an auction business to integrate Artisio with any third-party application currently used or requested, for example: Integration with eCommerce online payment platforms, accounting software, external marketing automation, marketplace and private bidding platforms.

6. Multi-branching

Artisio offers multi-branching functionality which can be used for better organization, separation and division of company auction data. Regional offices and additional branches can have separate stock management, individual taxes, commissions structures.

Our intelligent permission functionality allows businesses to curate which data can be used and reviewed by each relevant branch whilst also being managed globally. Multi-branching, provides companies with the ability to organize all auction activities faster and more securely, whilst providing flexibility if your business diversifies.

7. Multi-lingual software

Artisio will all enable you to manage and grow your business on an international scale. To enable this, Artisio supports over 25 international languages both within the internal script of the AMS and via translation tools. This unique flexibility allows your business to support branches all over the world and enables staff, in multiple destinations, to be able to use the same system efficiently and communicate with one another and externally with clients effectively.

Recession is an economic term that refers to a significant downturn over a period of a few months, normally visible in a fall in real GDP, employment, income and production.

Recession is usually triggered by economic shocks such as a rise in oil prices, financial panics, wars or a combination of all three.

According to economists, we are at the start of a new recession which has been triggered by the COVID pandemic and by the war in eastern Europe following Russia’s invasion of sovereign Ukraine.

Most companies suffer during periods of recession, primarily because both demand and revenue fall and uncertainty about the future increases.

However, it is not all gloom. According to a Harvard University study, during the last three big recessions 17% of 4700 public companies studied failed particularly badly, while 9% flourished, outperforming competitors by 10% in sales and revenue growth.

The factor which made the difference was preparation. Companies who successfully weathered the storm where well prepared, with a very low amount of debt, improved decision-making, better workforce management and digital transformation.

Downturns always encourage successfully managed companies to adopt new technologies and increase IT investment.

New technologies can make your business more transparent, more efficient and more flexible.

According to a study by McKinsey, one of the main reasons for companies to adopt new technologies during a downturn is to improve analytics to better understand their business, how the recession is affecting it and whether there is potential for operational improvements.

Artisio allows auction companies to have a 360-degree view of their business through our highly customisable reports and analytics. Customization is one of our main USPs. We believe that no two companies are the same, and each client requires an individual approach when it comes to analytics.

The second reason is that digital technology can help companies to cut costs, automate tasks or adopt data-driven decision-making. This is how Artisio helps auction companies: our clients see about 30 minutes time saving per employee per day after full deployment of the Artisio system in their company.

Artisio AMS allows companies to get a full picture of business performance through an intelligent client and stock management system. Multi-branch functionality enables international auction companies to see the performance of every office from one centralised dashboard.

The third reason is that IT investments make companies more agile, therefore better able to handle the uncertainty and rapid change that come with a recession.

Artisio’s QR code lot up and stock management system, and tablet-friendly inventory management module allow companies to enter new stock into Artisio even when they are offline, as well as giving unlimited third-party integrations with advanced API connections which make our clients super agile.

Companies that invest in new technologies and agile business practices are able to better understand the threats they face and respond more quickly. Artisio is here to help auction companies on that journey every step of the way.