What AI Is Doing to Real Estate

As reported in a recent CVAR At A Glance, C.A.R.’s Center for California Real Estate (CCRE) convened a panel of real estate heavy hitters to discuss how the industry can adopt and embrace artificial intelligence. Moderated by C.A.R. CEO Joel Singer, the panelists explored the challenges and opportunities that lie ahead with regard to AI. Here are 10 takeaways from the discussion:

1. AI is going to shrink the real estate industry 
The reality is that AI-derived efficiencies will probably result in fewer REALTORS®, but you should abandon images of an AI-triggered real estate armageddon. Good REALTORS® are here to stay, the experts all agree. 

2. AI is already smarter than agents 
AI is capable of conducting a level of data synthesis that humans could never hope to achieve. Be it pricing metrics or knowing the No. 1 reason why contracts fall through in a particular location, AI can connect the dots in ways that humans can’t.
 
3. It’s everywhere
Whether it’s the Google Maps commute time you’re given on the way to a listing, Siri telling you what time it is or the online price estimate your client comes in with, the likelihood is that you’re already dealing with AI on a daily basis, and there’s more coming.

4. Abandon the villain perspective
AI companies aren’t going to dictate how REALTORS® do business. It’s going to be REALTORS® dictating their requirements to AI companies. By being an early adopter of new technology you dictate where AI sits in your practice. 

5. Get ready to part ways with the boring stuff
Time consuming, frustrating or mundane tasks like lead generation and contract review are low hanging fruits in terms of AI-driven automation, allowing you to spend more time with clients!

6. Choose your partners wisely
Partnering with AI companies that have a business model that enhances the REALTOR® proposition is key to a thriving industry in a post AI world.

7. AI can be discriminatory
The real estate industry has come a long way in terms of embracing equality and inclusion–but algorithm-level bias in AI platforms may risk undoing these hard fought gains. REALTORS® need to be acutely aware of this possibility and ensure that AI platforms are built and deployed to reflect principles of fairness.

8. AI does IQ, not EQ 
Clients don’t judge REALTORS® on how many texts they send or the way they schedule appointments; they draw conclusions based on a REALTOR®’s ability to make deep and meaningful personal connections–something AI is unable to do to. That’s a good thing.

9. We’ll need to talk about data, again
Reassessment around who truly owns the consumer’s data is coming, and REALTORS® need to be part of that critical conversation.

10. Be a Netflix, not a Blockbuster

Nobody could have predicted the monumental shift the internet has brought to traditional business models, and it’s the same story for AI. Predicting AI’s full impact on the real estate industry is no slam dunk. Stay informed and keep up with tech!
 
Recordings from the panel is available on C.A.R.’s Facebook page, and a report will be generated and made available for download on the Center’s website and on car.org

Source: CCRE