Effects of AI on Real Estate

If you haven’t heard about AI by now, you probably truly live under a rock. Not actually, but still, artificial intelligence has been surfacing for several years now with some serious changes to the world as a result. The real estate industry is not exempt from this. AI has been making a massive surge in the real estate industry, and today we will talk about how. 

Artificial Intelligence has proved to be largely beneficial for many industries throughout the world, the primary driver behind this being the ability to pull data from all over the internet, analyze, and solve problems at the snap of a finger. AI uses computational power and algorithms to produce information and replicate human intelligence, at remarkable speeds and quality. So what does this mean for real estate?

There are tons of areas in real estate that will benefit from AI, one of the obvious ones being the analysis portion, both for investment properties and residential homes. AI can analyze and compute data to determine if a particular property meets someone’s specific needs or requests in record time. Predictive analytics are also being used to identify market trends and economic changes as they pertain to real estate. From a customer service perspective, AI is also generating faster responses to inquiries from customers via chatbots and virtual assistance. This allows for a personal customer service experience for real estate clients. 

At the same time, we are also seeing tons of “smart home” technology rolling out that integrates nicely with AI to tailor the technology in your home to your specific lifestyle. Examples of this include but are not limited to Smart Thermometers that learn your schedule and temperature preferences, lightning systems that activate based on your activity, and security systems that work around the clock to make you feel safe in your home and community. 

From a business perspective, we’re seeing AI make many processes more efficient for business owners, especially in regards to marketing, social media analytics, targeted ads, compliance checks, contract analysis, and transaction streamlining. Obviously all beneficial to the real estate industry, but what are some of the downsides?

As with any advancement in technology, the first concern amongst many people is the job replacement factor. This is certainly a reasonable thing to worry about particularly with real estate and AI, I think you may see many administrative tasks be replaced with AI in some way. Additionally, there is also a rational concern about privacy and data theft when it comes to AI, mainly because AI works by pulling data from various different places, some of which could be your personal information. There is no real way around this other than to use AI carefully and be mindful of its capabilities. 

All in all, it seems that the good far outweighs the bad, and that AI will take real estate to new heights. As technology brings us further into the future, it’s important for us to adapt and learn the new technology to better prepare for the effects of AI on real estate. AI will affect many different industries and could even disrupt our traditional way of living. Learning to work with it rather than against it can better prepare us for these changes. Thanks for reading!