While it was once considered an advanced technology of the future, artificial intelligence is very much a present-day reality.
Thanks to inventions like self-driving cars, home assistant devices, automatic vacuum cleaners and remote home security solutions, Artificial Intelligence is on everyone’s lips.
Since AI seems to affect both the public and private sector, we started thinking about all the different ways in which it’ll shake up the real estate world.
Read on to find out more about the current and future impact of AI in property sales, marketing and operations.
What is Artificial Intelligence?
Artificial Intelligence, or AI for short, refers to smart technological tools whose level of awareness allows them to learn from their environment in order to improve processes and decision-making.
AI tools can learn, plan, comprehend, and self-correct independently, thus saving time and resources. AI is typically separated into three different classes, namely:
- Automated intelligence: This refers to programs that can complete non-routine and routine tasks and automate cognitive and manual tasks.
- Supporting and Expanding intelligence: Designed to improve decision-making.
- Autonomous intelligence: Automates decision-making in order to reduce the need for human intervention.
Using these AI solutions in the real estate industry can help to fast-track decision making and improve operational efficiency.
That’s because these programs make it easier to identify and examine patterns and make connections between different components of large data sets.
Relevant Application of AI in Real Estate
AI brings innovation wherever it’s applied. That’s because AI tools are hardwired to self-optimize based on real-time data.
This makes them ideal for improving and streamlining complex processes. AI tools can help to improve efficiency for all the different stakeholders in the real estate industry, from investors, asset managers, brokers and sellers.
Moreover, AI solutions often lead to cost-efficiency as it becomes irrelevant for businesses to hire staff when they can just automate most of their operations. For instance, AI is pegged to automate real estate management, thus eliminating the need for large property management teams.
How AI Affects Real Estate Processes
Currently, information management is the main application of AI in the real estate industry. In this capacity, AI tools can be used to collect data on an entire property portfolio or an individual asset.
This creates a virtual data room that can be used to study documents, translate international real estate transactions in real time, and validate parameters.
However, AI is also useful at analyzing functions related to system control and monitoring, security and fire protection, especially when it comes to managing entire building structure.
Individual homeowners can also use AI to automate security, lighting and cooling systems. In fact, the machine learning processes imbedded in a lot of AI-powered Internet of Things devices allows for loads of energy and cost-saving potential.
AI Benefits for real estate agents and clients
AI can help to speed up real estate transactions by cutting in half the manual input and time required to complete them. AI also holds the promise of increased efficiency when it comes to marketing, due diligence and sales processes.
Commercial property operators stand to benefit the most from AI tools since they can be used to process massive data sets in half the time usually required.
With the right programming, AI can help you spot the potential pitfalls and advantages of a particular transaction without manually sifting through mountains of documents.
Real estate agents can leverage AI tools like chat bots to communicate with clients and analyze the facts from different perspectives, including property values.
Challenges of AI for the Real Estate Sector
One of the main challenges when it comes to AI in real estate is the fact that specialists are required to enable many of the automatic features. Keep in mind that AI tools can only work efficiently when independent learning has been enabled.
It’s also important to ensure that you utilize AI tools in compliance with legal regulations while keeping in mind security repercussions.
With all their benefits, AI tools cannot make final decisions on anything. Their job is to improve data collection, organization and presentation methods in order to facilitate better decision making.
To get the most out of AI, real estate operators would have to enable better collaboration between human capability and AI software algorithms.