How AI will change real estate in the next 2 years
February 2, 2023
Artificial Intelligence is about to revolutionize the real estate industry in ways that even those working on the technology may not fully comprehend. Real estate is known as one of the most antiquated industries, especially in places like Canada where incumbent corporations and governments have kept a tight hold on data and in many cases have resisted change.
Although we’ve seen many steps forward in the Canadian real estate industry and a bit more willingness to learn and adapt, we’re not moving forward as fast as our neighbours to the south or even many non-western countries who, in some cases are starting to jump right ahead to the latest technologies to make their societies more efficient.
The pace of change coming to the world with the latest breakthroughs in AI will disrupt all industries at a very rapid pace. We were already living in a quickly moving world and now it’s about to come even quicker, exponentially.
Here are 4 categories where AI is making and will continue to make real estate more efficient in the next 2 years:
Predictive Analytics
Predictive analytics is a key aspect of AI that will play a significant role in the real estate industry. It can help companies analyze data from various sources, including market trends, consumer behaviour, and economic indicators, to predict future real estate market trends.
Taking disparate data sets that are publicly available and combining them with proprietary data that companies already own could open up a world of insights and connections that were yet to be made.
What will this look like? Companies will be able to select AI models a la carte and connect them with their internal AI models to draw insights that would unlock competitive advantages. For example, a model which can predict the price of rents based on non-traditional data sets such as environment or points of interest could yield insights into future locations for rental developments that can return higher ROIs.
Improved Customer Experience
Improved Customer Experience: AI-powered chatbots and virtual assistants can provide real estate clients with a personalized and more efficient customer experience. For example, clients can use chatbots to search for properties, receive answers to their questions, and schedule viewings. Additionally, AI can automate routine tasks such as lease renewals and tenant screening, freeing up real estate agents to focus on more high-value tasks.
In pretty much all cases, AI will be a more knowledgable source of data than any agent. Any agent that isn’t using an AI assistant to help their clients will inevitably be providing a lower quality service than those who are utilizing the technology to help their clients make better decisions.
Streamlined Operations
Streamlined Operations: AI can automate various real estate operations, including property management, tenant screening, lease renewals, mortgage underwriting, document verification and contract management. By automating these tasks, real estate companies can save time and money and improve the overall efficiency of their operations.
No longer would a client have to wait days for a pre-approval. Instant document verifications hooked up to AI models that can accurately assess risk would mean mortgages being approved in seconds. This would provide an overall better customer experience and a more efficient mortgage business.
Enhanced Decision Making
Enhanced Decision-Making: AI can analyze vast amounts of data to provide real estate companies with valuable insights into the market, property values, and consumer behavior. This information can help companies make better-informed decisions about investments and market trends. AI can also help companies identify and prioritize high-value properties, leading to more effective and efficient investments.
In conclusion, AI has the potential to greatly improve the efficiency, accuracy, and customer experience of the real estate industry.