Emerging Technology: AI in Real Estate

The real estate industry is experiencing a technological revolution, driven by cutting-edge technologies that are redefining how properties are bought, sold, and managed. Among these advancements, artificial intelligence (AI) stands out as a game-changer, offering innovative solutions that enhance efficiency, accuracy, and customer experiences. From predictive analytics and virtual tours to automated property valuations and smart home integrations, AI is not just a futuristic concept but a practical tool reshaping the landscape of real estate. As the industry adapts to these innovations, real estate agents, brokers, and investors are finding new ways to leverage technology to stay ahead of the competition and better serve their clients.

Even though change can be challenging, embracing new technology is essential for modernizing your approach and staying relevant in the real estate industry. Integrating advanced tools like AI not only enhances efficiency but also offers a competitive advantage, ensuring you are well-equipped to meet the evolving demands of the market.

UNDERSTANDING DIFFERENT TYPES OF AI

Artificial Intelligence (AI) can seem complex, but breaking it down into its basic types makes it easier to understand. Here are the main types of AI in a way that beginners can grasp:

1. Reactive AI is a fundamental type of AI system that functions based on immediate reactivity. These reactive AI systems lack memory and cannot learn from past experiences, meaning they are unable to utilize previous information to guide current or future actions. Instead, they rely on rules and heuristics to make real-time decisions and adapt to changing environmental conditions.
2. Machine Learning models are often considered reactive systems because they analyze customer data, like purchase or search history, to generate recommendations for those same customers. An example of this is a streaming service that utilizes machine learning models to analyze a customer’s viewing history and suggest movies and TV shows they are likely to enjoy.
   • SPAM Filters or Self-Driving Cars are examples of Machine Learning.
   • Generative AI, is a type of machine learning that uses large amounts of data to create new content. Generative AI uses models to learn patterns and relationships from humancreated content and then generates new content. This process involves a large language model (LLM) producing original material for each user interaction, ensuring that no two users receive the same content. This approach helps to address concerns related to copyright, trademark, and plagiarism by ensuring that the generated content is always original and not simply copied from existing sources.
   • Popular tools such as ChatGPT, Google Gemini, Microsoft Co-Pilot, Midjourney, etc. all utilize Generative AI technology.
3. Theory of Mind AI is a type of AI that is still being developed. Theoretically, it can engage with understanding and incorporate human emotions, conditions, and behaviors like an emotionally intelligent robot used in the health care system.
4. Self-Awareness AI (which also goes by the name Singularity or AGI/Artificial General Intelligence) doesn’t really exist yet. It’s what you see in sci-fi movies, like robots that can think, learn, apply knowledge across a wide range of tasks, and make decisions similar to a human.

Understanding these types can help us see how AI is already a part of everyday life and how it might develop in the future. In addition, AI and its capabilities can help Realtors® identify which technologies can help improve customer experiences, and stay ahead in a competitive market.

EMERGING TRENDS IN AI

In the fast-evolving world of real estate, staying ahead of emerging trends and technologies is crucial for Realtors® aiming to remain competitive and provide top-notch service. And with AI leading the forefront of technological advancements, we’ve reached out to expert Craig Grant, CEO of The Real Estate Technology Institute/RETI, to help us identify emerging trends and understand their implications.

“Generative AI is seeping into just about every aspect of life and business and can be used to do just about anything these days,” said Grant. Grant further explains that the main trends we are seeing are:

• Computer Visualization is a form of AI that allows computers to detect and interpret just about anything in a picture or video. This technology is improving by leaps and bounds and is going to transform real estate in many ways; where a listing can not only be entered into the MLS just based on the pictures of that property, but combined with data, it can also evaluate the property condition, amenities, compare it to other properties in the area on the market, create the CMA and a lot more.
• Personalized Avatars: The ability to create an avatar of yourself to create video content without being on camera is also improving rapidly. But what we are starting to see is more advanced functionality such as being able to convert video into other languages (HeyGen) or merging with your database (BHuman) so that one piece of video content can become multiple and even personalized video content in seconds.
• AI Assistants: Realtors® can use AI to be like your personal secretary or assistant to do so many of your traditional manual tasks such as responding to communications and leads, handling customer service, customer follow-up, and more.
• Office Software Integration: By adding AI into your email account and office applications, it allows you to operate so much faster and more efficiently such as responding to or preparing email responses in a click or even create entire documents in seconds.
• Marketing: From brainstorming ideas to content creation, to developing marketing materials, plans, and more, AI and tools like Canva are amazing at marketing.

TIME-SAVING AND MANAGEMENT

AI-powered software, including CRMs, is a gamechanger for real estate professionals. These tools automate routine tasks, allowing agents to focus on what they do best: building relationships and closing deals. Here are some key benefits:

• Task Automation: AI automates scheduling, follow-ups, and data entry, significantly reducing administrative workload.
• Improved Customer Service: AI-driven chatbots and virtual assistants ensure that clients receive timely responses, enhancing customer satisfaction.
• Enhanced Follow-Up and Retention: AI tools analyze customer interactions and suggest personalized follow-ups, improving client retention rates.

BUSINESS AND MARKETING PLANS

AI tools are not just about managing time; they are also instrumental in crafting effective business and marketing strategies. AI can be used to analyze market trends and provides insights that help in creating robust business plans. In addition, AI-powered tools can create personalized marketing campaigns, targeting the right audience with the right message.

SOME ESSENTIAL TOOLS

Here are some essential AI tools every real estate professional should consider:

• ChatGPT: An advanced language model that assists in drafting communications, analyzing data, using a vast library of custom GPTs (apps and integrations.
• Google Gemini: A powerful tool for data analysis and business intelligence that integrates with Gmail, Google Docs, and many Google tools.
• Microsoft CoPilot: Integrates with Microsoft Office and Outlook, helping with task management and document creation. ChatGPT, Google Gemini, and Microsoft CoPilot are all types of AI known as Large Language Models (LLMs). These models are trained on vast amounts of text data to understand, generate, and manipulate human language effectively.
• Canva: An AI-powered design tool that simplifies the creation of marketing materials.
• MidJourney: An AI tool for generating high-quality images and visual content.
• RPR Script Writer: Specialized for real estate, this tool helps in creating detailed reports and scripts.
• BHuman: AI-powered customer service and engagement tool.
• HeyGen: An AI tool for generating high-quality video content.
• Descript: A powerful tool for video editing and transcription, enhancing content creation.

POTENTIAL RISKS OF USING AI IN REAL ESTATE

While AI offers numerous benefits for time management, task automation, and data analysis, it’s crucial to be aware of the potential risks associated with its use.

“Generative AI platforms are known to sometimes provide false or misleading information (or even make it up), content can often include hate and/or bias, etc. and it is the real estate professional’s responsibility to ensure everything they publish is accurate, not misleading, not illegal (legally or the code of ethics), and/or wouldn’t potentially damage their reputation,” said Grant. “For example, it can easily create a property description that is inaccurate or violates fair housing laws or create a profile of a community that is outdated or wrong because it pulled information from an unreliable source. It is imperative that all content created with AI is thoroughly checked in every way before using it in the public or in one’s business practices,” added Grant.

A FEW ADDITIONAL RISKS INCLUDE:

• Bias and Discrimination: AI systems can inadvertently perpetuate biases present in the data they are trained on. If AI tools are trained on biased data, they can produce biased outcomes, potentially leading to discriminatory practices in customer service or marketing.
• Over-Reliance on Automation: While automation enhances efficiency, over-reliance on AI can have drawbacks such as loss of personal touch. Real estate is a relationship-driven industry. Overreliance on AI for customer interactions can result in a loss of the personal touch that is often crucial in building trust with clients.
• Invest in Training and Development: Proper training is essential for anyone utilizing AI to ensure they can effectively work with AI tools and adapt to changing roles.

By being aware of these potential risks and taking proactive steps to address them, real estate professionals can harness the power of AI while safeguarding their businesses and clients.

UNDERSTANDING AI IS A NECESSITY

The integration of AI tools in real estate is not just a trend; it’s a necessity. By leveraging these technologies, real estate professionals can save time, enhance productivity, and provide better service to their clients. Embracing AI is the key to staying competitive in today’s dynamic market.

“I have talked to hundreds of agents who are now using AI to improve their business practices, marketing, and more,” said Grant. “When I do workshops, I show agents how to build out their entire year’s worth of marketing materials in multiple media formats in minutes which is transformative for so many who attend. Using AI is an amazing tool, but proper training is key to its success.”