Artificial Intelligence in Real Estate

Written by Acme Mag

When you think about Artificial Intelligence (AI), it’s easy to consider the strides that have been made today, with Chatbots, software, and apps that can do just about anything from fixing code to generating artwork based off your own selfies. But AI has been around much longer than you might have thought. In the 1950’s, Alan Turning was able to crack the Nazi encryption machine, Enigma – a poignant moment in World War II and history.

For instance, when Spotify starts playing songs it knows you will like after your playlist runs out, or you may have noticed your recommendations on Netflix looks very different to someone else’s. What about how Google Maps knows exactly where you work and can update you on the best route there in real time? It’s not a coincidence – it’s AI..

AI has been known to help solve crime, assist in detection of illnesses and disease, create tools that are useful to support people with disabilities, and those examples barely scratch the surface in what AI is helping people with today.

But, what about in real estate?

Compared to other large industries, real estate is known to have less of an appetite for embracing new technology. KPMG’s Proptech Report showed that only 58% of real estate companies had a digital strategy in place in 2020. While we can assume this would have accelerated during the pandemic, it’s become clear: real estate is a space AI wants to play in. In fact, the first half of 2022 alone saw $13.1 billion invested into real estate proptech.

There are everyday reminders of why businesses need to adapt to stay relevant. Think of how Uber totally disrupted the traditional taxi model. In real estate, the pandemic was a rude awakening for some businesses. Virtual home tours, online auctions, paperless contracts – if you weren’t able to quickly adapt, you were already steps behind a competitor who could.

How to embrace AI

AI is inevitable in real estate, of course tech start ups will keep doing whatever it takes to have a slice of the pie in the world’s largest asset class that is real estate.

Another key driver is your audience. They’re seeking out better experiences when buying, selling, renting or leasing a home. Likewise, your staff are looking to work at agencies that are innovative and adapt to change.

Analyse your strategy

There are hundreds of PropTech companies entering the market every day, it’s a cluttered space. You already don’t have enough time – how are you going to separate the best technology from the don’t bother? As we said earlier, there’s an app for everything. Likewise in real estate, there’s PropTech for just about anything too. 

Start identifying one key issue in your business you’d like to solve and that can be tested with  AI. Is it not being able to get back to every rental application? Not having enough leads? recruitment? Perhaps it’s implementing a firm strategy?

It’s there to assist you, not replace you

In real estate, you’re dealing with usually the most financially stressful decision a person will make in their entire life and for most, it only happens once or twice in their life. It can be a daunting process – it’s not like just ordering groceries online.

Use technology in a way that doesn’t reduce you as an agent or business owner, but rather,  gives you back time in your day. Cut the mundane tasks that must be done in half or thirds using AI and free up yourself to focus on the softer skills. Negotiating, networking, advising,  building relationships, motivating your team. These are just a few of the skills you need to be a successful agent, property manager or business owner that no machine can do a better job of.

If you’re looking to find out more about implementing technology into your business, check out our article on RiTA’s influence on the industry here.