In the business world, nowadays, Artificial Intelligence (AI) is a controversial topic. Thanks to sci-fi movies and books we see AI as a machine that will bring the era of unemployment and total control! In fact, no one knows exactly what the future holds for us, but it’s undeniable that AI has possibilities that can serve good.
Now, let’s take a look at possibilities that may happen in the real estate industry due to AI.
Customer Relationship Management
CRM is what real estate agents care about. That is why CRM systems are so important. Imagine an AI-based system that can predict certain behaviors. Now imagine the possibilities real estate agents will have using these kinds of systems. It will help agents to make more informed decisions. It will also help clients get the best deal.
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Analyzing a large quantity of data, AI-based solutions are able to predict, for instance, whether a client is serious about buying a property or not. They can also determine which clients are more engaged with agents thus predicting those that are more likely to become an actual client.
Market Analysis
As mentioned above AI can analyze a large amount of data in a short period of time together with making predictions at the same time. Therefore, it is a useful tool for real estate agents to understand the market much better, so can be better advisers to their clients and have a stronger marketing strategy when it comes to showcasing the listings and suggesting the best sales price.
More Efficient Communication
As we all know communication is a key factor in a real estate business, and by analyzing communication patterns, AI can make it more efficient.
Mortgage Industry
Using AI in this industry is more task and workflow-related. Artificial Intelligence in the mortgage industry is oriented toward automation while at the same time improving compliance, quality, and processing times. Using a chatbot is just one example of enhancing processing time since no one needs to wait for human agents, especially when they have common questions.
Real Estate Investment
It is undeniable that the prediction accuracy of AI is unmatched due to having access to large data pools. Therefore, when it comes to real estate investment, it can benefit you by amplifying the possibilities when it comes to the data analysis and prediction process.
Matching Property to the Real Estate Client
Here, the concerns related to biases in predictive processes can be understood as it is both exciting and scary for AI being able to match the property to the client. However, the fact that AI will amplify and improve the home search experience and make it more personalized, benefits both clients and agents.
What Are the Ethical Issues of AI in Real Estate?
There are four major concerns real estate professionals have when it comes to AI.
- Unemployment: it is obvious that real estate agents may concerned that artificial intelligence will replace them and therefore change the real estate industry. What we see right now is that we are far from advanced AI types that might threaten our employment prospects. In fact, artificial intelligence, for the time being, contributes to improving and make more efficient the business management aspect of real estate.
- Data Protection: Due to the fact that, nowadays, AI heavily relies on data analysis for development, there are valid concerns about data protection. In brief, transparency will likely be important when it comes to AI as real estate professionals are concerned about the legal and ethical framework of AI using data from buyers and sellers.
- Discrimination: It is one of the top concerns in society and the real estate industry is not an exception. AI is able to match people with properties on the basis of the price point and location preferences, and prevent clients from being discriminated against based on their gender, sexuality, or religious preferences.
- Lack of Regulations: It has yet to be discovered what the possibilities and threats of AI are. This concern is not only for real estate agents but also for other areas as well. However, we should harness the power of it, assimilate it and understand it, thereby removing the negative stigma and creating a positive experience for every real estate professional.
All in all, real estate agents and AI are not enemies. Actually, professionals in this industry are still at the core and use some variations of AI in their work such as chatbots. Thus, AI can be a supportive tool that helps real estate agents to boost their job performance.