By Sachin Dev Duggal, Founder & CEO, Engineer.ai
Artificial Intelligence (AI) is arguably one of the most important advancements of the 21st century. Its ability to process vast amounts of data have unlocked unprecedented doors in numerous industries, including optionally, for real estate.
The global AI market was worth $7.35 billion in 2018, and the largest revenue came from enterprise applications. The market is expected to catapult to $89.84 billion by 2025. The applications of AI with its’ abilities in learning, analysing, decision-making and problem solving are endless.
The real estate industry needs to match suitable properties for clients. AI can make this happen by offering customized, personalized user experiences. AI algorithms can categorize various variables such as type of property, price, location, amenities, lifestyle and other interests to provide the perfect match between buyers and sellers.
The deployment saves time and effort on behalf of real estate brokers for example. For example, Airbnb is a popular example of a startup that uses such algorithms for recommendations to find the right property for the right audiences at the right price.
#2 Better valuations
The technology’s data analytical ability can be translated to observing property valuations as well. Current appraisal techniques typically revolve around previous sale prices while disregarding transportation and infrastructure improvements, changes in environment, neighbourhood and other factors like schools and access to stores. Think about how your insurance rates are handled–there could be a similarly simple process of property valuation.
AI’s pattern recognition capabilities facilitate this significant issue by revealing the price-affecting factors in detail. Such data analytics can be used to enhance financial accountability as it can predict whether people are likely to default on any loans or fail credit checks. In addition, for homeowners, AI-enabled systems like automated facial and voice recognition can improve and ease commercial and residential security.
#3 Better communication
AI-enabled chatbots can further assist consumer servicing in real estate. They can be introduced in company websites, apps or social networking profiles to tirelessly offer round-the-clock customer support.
The technology’s Natural Language Processing abilities allow it to analyse multiple languages and initiate conversation in a human-like manner. This makes them effectively indistinguishable from real people. Inman, a real estate company, conducted an experiment called, ‘Broker vs Bot’. The chatbot inevitably fared better than realtors in offering property recommendations.
With regular communication with concerned parties and accurate review systems, AI can enable creation of designs that are bound to address the detailed needs of audiences seeking residential property. Brands can thus offer solutions that are tailor-made for the residential and commercial real estate sector backed with persistent yet welcoming brand philosophies. This could open up a new, wide world of businesses to support a technology-friendly real estate industry.
Having elaborated on the advantages, it would still be crucial for the industry to harness human function alongside AI processes. The application would require efficient interaction with humans because of our decision-making capabilities. It is true that AI will take over the more repetitive tasks, but this would allow room for professionals to focus more on the creative and difficult aspects of the industry.
Real estate is one of the industries that require personalization and engagement; key aspects that AI can bring to the table. The simple ideology of offering authenticity to consumers would fit in seamlessly in the industry.
Though AI is nascent, the possibilities of improving the real estate industry are extensive. As the technology advances further, the range of use cases will increase alongside. Hence, it is imperative for businesses to adopt AI in their processes to offer more personalization to consumers. Those willing to adapt such technological disruptions will reap the benefits and stay ahead of the apparent clutter.