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Optimizing Luxury Vehicle Dealership Networks: A Graph Neural Network Approach to Site Selection

Carocci, Luca Silvano, Han, Qiwei

arXiv.org Artificial Intelligence

This study presents a novel application of Graph Neural Networks (GNNs) to optimize dealership network planning for a luxury car manufacturer in the U.S. By conducting a comprehensive literature review on dealership location determinants, the study identifies 65 county-level explanatory variables, augmented by two additional measures of regional interconnectedness derived from social and mobility data. An ablation study involving 34 variable combinations and ten state-of-the-art GNN operators reveals key insights into the predictive power of various variables, particularly highlighting the significance of competition, demographic factors, and mobility patterns in influencing dealership location decisions. The analysis pinpoints seven specific counties as promising targets for network expansion. This research not only illustrates the effectiveness of GNNs in solving complex geospatial decision-making problems but also provides actionable recommendations and valuable methodological insights for industry practitioners.


In These Small Cities, AI Advances Could Be Costly

MIT Technology Review

It's long been clear that urbanization and automated technologies are shaping society, but it hasn't been obvious how the two forces affect each other. A new study from MIT's Media Lab posits that the smaller the city, the greater the impact it faces from automation. The finding, they say, could encourage legislators to pay special attention to workers in smaller cities and offer them support services. Other researchers have attempted to measure the effect of technology on employment in cities, but the Media Lab authors, who have identified which jobs and skills tend to be more prevalent in smaller cities and larger ones, claim to be the first to explain why different U.S. cities are more susceptible (or resilient) to technological unemployment. They say that bigger cities have a disproportionately large number of jobs for people who do cognitive and analytical tasks, such as software developers and financial analysts--occupations that are less likely to be disrupted by automation.