The Impact of Artificial Intelligence on the Real Estate Industry
Artificial intelligence (AI) refers to the ability of machines (computers) to be able to solve problems through learning over time. Artificial intelligence gives computers the power to process information and makes decisions like the human brain does. Although the concept dates back decades (1956) and many advancements have been made, AI is still in its formative stages. Many computers today perform simple AI tasks in comparison to the potential of the technology. AI advancements will be considered strong when all computer inputs and outputs can’t be defined. Nevertheless, AI has had an enormous impact on many industries including real estate. Below are some of the main ways AI has changed the real estate industry.
Real estate searches begin on search engines today
It’s important to note that most real estate searches begin on search engines like Google and search engines are a perfect example of AI. Real estate searches rarely start in an office nowadays. Search engines are machine learning tools which process search questions as well as the information on various real estate website pages before directing searches to the results with the most relevant information. Matching the needs of real estate buyers and sellers has been a real estate industry problem for decades. Search engines have solved this problem. All real estate stakeholders are better placed to find exactly what they need by turning to search engines.
AI has also made it possible to search/list for properties using more criteria. Unlike before when real estate buyers, sellers, investors, etc. were limited by search results revolving around price and area, searching is now more sophisticated. AI has made it possible for real estate investors, real estate agents/brokers to be as specific as possible when searching or listing property. There are web tools that make it possible to search for specifics such as return on investment. Artificial intelligence has enabled us to integrate intelligent search tools into real estate websites offering even better search results than ever before. Furthermore, intelligent searching factors in searches even before searchers ask for them. As a result, the intervention of professional real estate brokers has become high specialized and pushed back to the last stages of closing real estate deals.
Accurate image recognition
Search engines are still lagging behind in regards to processing images from written descriptions. Considering real estate relies heavily on images, search engines can’t be relied upon 100% when it comes to image searches because of variable descriptions that may be given by different people about the same image. AI solves this problem perfectly when integrated with image recognition software. It is possible for computers to describe/interpret images with an unmatched degree of accuracy. AI can identify people, animals, actions, emotions, moods, etc. in images. AI is making it possible for real estate clients to find real estate images that lead them deep into the real estate buying process without the need for descriptions or classifications. AI will get rid of the painstaking process of manually describing as well as categorizing images making it possible to process countless images in real time without compromising on accuracy.
Chatbot technology is powered by AI and rules that allow interactions through a chat interface. Chatbot technology has made it possible for visual interactions to take place online. The technology has evolved to a level where it is in use in many commercial sectors including real estate. Real estate tasks/processes like booking appointments, providing basic property information can be handled by AI today. In the near future, chat bots are bound to take over many basic real estate tasks/processes that have required one-on-one interactions. The technology is expected to automate real estate lead generation and outreach. Chat bots are expected to handle initial marketing outreach tasks leaving real estate brokers to deal with highly qualified leads identified in the lead generation and outreach process.
The above information summarizes some of the ways artificial intelligence has affected the real estate industry. AI has had an overall positive effect on the industry in regards to helping real estate consumers get exactly what they want faster. AI has improved the entire searching experience of all real estate stakeholders. Although AI has also disrupted traditional real estate business i.e. traditional real estate brokers duties are shrinking, becoming more specialized and unfortunately may be obsolete in decades to come, the technology is unstoppable. AI has solved and is expected to keep solving a lot of real estate problems experienced today online and offline while exploring new possibilities.
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