Artificial Intelligence (AI) is all about training computers to digest, comprehend, and act upon large amounts of information. A number of use cases for AI have entered the real estate scene. Artificial intelligence is:
- Offering customers better home search functions.
- Producing real estate companies’ property estimates.
- Reshaping the way lenders vet botential borrowers’ loan applications.
- Taking virtual home tours to the next level.
So, have the machines finally taken over?
Real Estate Is a People Profession. It Always Will Be. Yet…
Artificial intelligence is poised to complement just about every aspect of it. And because AI offers efficiency enhancements, count on it to keep spreading.
Here are some other ways artificial intelligence is poised to perform in real estate:
- Real estate market analysis: AI can scour an absolutely massive heap of information, and make it all make sense for a particular goal or question. It can predict market trends in a given city or metro area. It can help an investor compare potential purchase plans. It can present a customized set of opportunities with a range of potential outcomes for each.
- Support for investor-owners: Artificial intelligence can also be applied to screen renters, bill them, and create credit histories for them. AI chat tools can guide potential residents as they apply for rentals. AI can even help make sure units are always occupied.
- More mortgages: Some online mortgage companies are now relying on artificial intelligence to do credit checks, assess risks, and make super-fast approval decisions. Artificial intelligence tools can automate an account holder’s loan payments, too. More borrowers could be approved for loans because of the reductions in risk AI can provide.
☛ See: Could Blockchain and Artificial Intelligence Remove Bias From the Mortgage Process?
- Repairs and curb appeal projects, automated: AI can examine sensor data, find potential hazards or reasons for extra attention in home systems, and schedule fixes. AI can also keep a database for the homeowner. Imagine everything from paint preferences to future renovation ideas, charted out on your phone whenever you’re ready to start a project.
- Smarter homes: AI can learn how residents come and go. That makes AI controls better than timers for automatically adjusting heating, AC, lights, and entertainment systems. AI can fine-tune our smart doorbells, locks, and cameras according to our needs. All this can enhance comfort, health, and safety at home. It can also lower costs and reduce energy use.
- Virtual tours: The evolution of buildings’ digital twins draws from the blockchain world, augmented reality, and AI technology. The most advanced 3D virtual tours offer potential buyers immersive experiences, with their own avatars, to simulate being there in person. This can save time, avert wasted trips, and ensure a seller that only the most serious shoppers will be coming for an in-person visit later.
☛ See: AI and Blockchain: Their Blended Impact in Real Estate.
What Are the Objections to AI in Real Estate?
AI is getting very good at learning our ways. That means some companies are acculumulating vast troves of data. Our data, collected from some of our most inimate places, including our homes. And they’ll happily profit from our data by selling us their ever-evolving AI, trained on our personal, daily activities.
This raises both privacy concerns, and questions about whether and how we’ll be reimbursed for the personal information companies harvest and put to use.
And another thing. AI makes mistakes. Some people think AI could overpower us. People must be able to override AI. Who makes sure we can?
Lawmakers are trying to protect society from the corporate abuse of AI as we speak. It’s not easy to have confidence in this quest. Advancements in AI technology are, after all, a global phenomonon.
Meanwhile, for better or worse, the evolution of artificial intelligence is keeping the modern real estate industry on its toes.
Supporting References
Jeremy Bowman for The Motley Fool via Fool.com: AI In Real Estate – How Artificial Intelligence Is Changing the Real Estate Market (updated Jul. 19, 2023).
Samuel Leeds for Entrepreneur® (part of Entrepreneur Media LLC): How AI Will Transform the Real Estate Market (Feb. 16, 2023).
And as linked.
More on related topics: Artificial intelligence, Smart homes
Photo credit: Matheus Bertelli, via Pexels.