Auto insurer SunCar Technology Group has joined forces with Volcano Engine, a subsidiary of ByteDance, to incorporate the Doubao large language model (LLM) into its core automotive services.
The integration with SunCar’s sector-specific intelligent cloud is expected to improve various aspects of the company’s operations, including its vehicle dispatch system, auto insurance software-as-a-service (SaaS) solutions and customer interaction interfaces.
By merging SunCar’s AI with Doubao’s LLM, the company aims to refine its smart pricing and recommendation systems for auto insurance.
This will involve the development of a risk assessment model that utilises a vast database of vehicle records, aiming to increase policy matching and potentially reduce costs related to insurance claims.
Additionally, the introduction of AI tools for policy renewals may lead to a reduction in customer acquisition costs, with projections suggesting a decrease of up to 70%.
The agreement is expected to revamp SunCar’s smart dispatch system by employing Doubao’s real-time decision-making tools, which could reduce response times.
The synergy is also set to enhance the accuracy of predictive maintenance, potentially increasing customer conversion rates for service by 35%.
Other expected improvements include an AI-driven rating system to refine the service provider network and a significant increase in the efficiency of vehicle inspections through AI image recognition technology.
The application of Doubao’s AI is also set to automate aspects of partner marketing, with the goal of reducing associated costs.
Intelligent reporting tools will automatically generate insights for partners, such as industry trends and regional service demands.
By 2026, SunCar expects its intelligent dispatch system to extend to the majority of its service network, with an increase in customer retention for its auto insurance SaaS platform and a notable rise in revenue from electric vehicle (EV)-related services.
In March 2025, SunCar secured a contract to develop and manage the insurance platform for Leapmotor, a Chinese EV manufacturer.
“SunCar enters AI cooperation agreement with ByteDance’s Volcano Engine ” was originally created and published by Life Insurance International, a GlobalData owned brand.
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