How AI Will Change the Game in Real Estate
If there is one thing on everyone’s minds these days it’s AI or artificial intelligence—and its roots stretch back further than you may realize. The term “artificial intelligence” was first coined back in 1955 in a research project proposal. The proposal states, “a truly intelligent machine will carry out activities which may best be described as self-improvement.” So, although we’re now nearly 70 years out from the first usage of the word, the goal of AI usage has remained relatively unchanged.
Almost every industry today utilizes AI in some way or method. It’s a hot topic because it’s changing the way we operate in the world, the number of tasks we can accomplish, and our efficiency as individuals and collectives. The real estate industry is no exception. According to a 2023 study by the real estate company JLL, “AI and generative AI were ranked among the top 3 technologies that were expected to have the greatest impact on real estate over the next three years by investors.”
AI is a powerful tool to utilize in real estate, allowing us to better understand the market by making market predictions sourced from the data available to the software. Of course, the positive of AI is that the more you engage with it or “feed it,” the more intelligent it becomes. It will always still need a human at the helm—so don’t worry about your role becoming obsolete—but it can make our work more precise, seamless, and well-rounded.
We can attempt to feed our built-out excel sheets an abundance of information, but no matter how many sources we pull from, we can’t compete with AI’s ability to collect and synthesize data as it creates patterns and parallels that allow us a deeper understanding of the market. The expansive powers of AI in real estate translate to the way it powerfully works for the individual as well, with the ability to learn a buyer’s preferences, location, and history to better serve them results as they search for agents, resources, or properties.
Instead of manually calculating the value of a home by performing a comparative market analysis, agents can utilize AI software to get a value, and with the available technology they’re able to get a listing price that’s based on more factors, data, and complex algorithms than ever before. Automation and streamlined processes will allow buyers and sellers to get right at the heart of what they need out of a transaction, boosting satisfaction and allowing for a faster timeline.
In addition to changing the way we buy and sell real estate, AI is also on track to change the way we develop real estate. Through the power of AI, buildings will be able to be constructed more sustainably and efficiently, increasing the number of net-zero buildings we see in the future.
As with all newer or cutting-edge technological advancements, there’s certainly a reason to be wary—we should never entirely change our ways of operating within our businesses or personal lives without some trepidation! Critics of AI have spoken out about the issue that the data being utilized by AI may not be the most accurate. Ultimately, because AI is influenced by however humans choose to use it, we need to be mindful of how these systems grow and evolve. These concerns are valid, but as AI pulls from the same sources as agents, developers, and industry leaders do, and the solution should be about attempting to curate more accurate data across the board, and not just in AI. Ultimately, the criticisms of AI can only help us make it better as we progress.
I’m thrilled to see the ways in which artificial intelligence revolutionizes the industry, and I do believe that it will happen quickly, so let’s all get on board and learn together how we can best employ this incredible technology! If you’re curious about more ways in which AI is improving the real estate industry, reach out to me today. It’s one of my favorite topics to discuss!