The real estate industry has long been reliant on traditional practices and technologies. But nowadays, it’s discovering the whole potential of artificial intelligence. We now see various AI-powered solutions made specifically for the broadly-understood real estate sector.
From enhancing customer experiences to streamlining property management processes, AI-powered tools help real estate professionals operate in a more effective and streamlined manner. In this article, we want to show you how AI is reshaping the real estate industry and how it’s making RE professionals’ work much easier and faster.
AI in Real Estate: Different Applications
Let’s start with the beginning. When it comes to the real estate sector, AI-powered solutions are helping agents and brokers provide more personalized and efficient services to their clients. Here, advanced AI and machine learning algorithms play the most important role. AI is capable of analyzing vast amounts of data in order to deliver valuable insights into market trends, property preferences, and pricing data.
In other words, RE professionals can use all the available data without the need to analyze it manually or operate solely on their hunch.
What’s more, speaking of the customer side, artificial intelligence is enhancing CX (customer experience) through virtual assistants and chatbots that provide them with everything they need to know almost immediately, 24/7. Real estate chatbots can:
- Respond to inquiries
- Schedule appointments and viewings
- Provide recommendations based on the given client’s situation.
Here, it is important to mention one more AI-related technology – natural language processing (NLP) that allows chatbots and voicebots to understand customer queries and respond in a coherent manner, thus offering a seamless and responsive communication channel for people looking to buy or sell their property.
On the other hand, AI-driven recommendations are also becoming increasingly important these days. They utilize predictive analytics to suggest properties that align with a given client’s preferences and budget. Thanks to machine learning, these algorithms can analyze past behavior and customer preferences in order to offer accurate property recommendations.
And there is one more element we’d like to mention – intelligent property visualizations that are possible thanks to VR and AR. AI frequently powers virtual reality and augmented reality technologies to allow clients to see their future apartment/house the way it looks in reality. These technologies revolutionize the way realtors do virtual tours of properties without even leaving their homes or realtor’s offices. This technology comes in handy, especially when looking for properties in different cities or countries. This solution saves time and provides clients with a more engaging and interactive experience, improving overall CX.
AI in Real Estate: Property Management
Artificial intelligence plays a vital role not only during the buying and selling-related processes but also in property management. Let’s have a look at how this aspect of AI in real estate works in real life.
First off, one of the key areas where AI is extremely helpful when it comes to property management is predictive maintenance. AI algorithms can predict equipment failures or immediate maintenance needs by analyzing historical data and sensor inputs from smart buildings. This solution allows property managers to address diverse technical issues early before they escalate and become more costly. Thanks to predictive maintenance, property managers can reduce downtime and maintenance costs and enhance the overall operational efficiency of their buildings.
Here, AI-powered chatbots are also very helpful as they are capable of streamlining communication between tenants and property managers. For instance, tenants can use these assistants to report issues or request assistance 24/7. More advanced chatbots can then prioritize and assign tasks to various contractors based on their urgency (so that a tenant who has a leak in their apartment can be served first).
Lastly, artificial intelligence comes in handy when it comes to tenant screening and lease management. AI-powered screening tools can automatically assess the creditworthiness and both credit and rental history of future tenants. As a result, property managers can make quick and accurate decisions based on solid data. As a result, the whole process is significantly streamlined.
Challenges to Tackle
While AI in real estate has already achieved some impressive things, there are still some challenges and considerations that should be addressed. One of the biggest concerns is the potential bias in AI algorithms. We’ve seen multiple cases where AI was biased, not just in real estate. Both property managers and scientists working on those tools should, therefore, prioritize transparency in AI systems and never fully trust AI to make always good and fair decisions.
Additionally, the use of AI in real estate still requires some significant investments in infrastructure and employee training, especially in smaller companies for which this technology may still not be fully available due to costs and needed competencies.
Wrapping Up
There’s no doubt that AI is reshaping the real estate industry (and dozens of other industries!), offering many opportunities to streamline diverse processes and make the most of available data without manual analyses. While there’s still much work to do, AI is revolutionizing the way real estate professionals do business and handle everyday tasks even today. If you’d like to see some real-life applications of AI in real estate, we encourage you to view this article on Addepto’s blog: Artificial intelligence in real estate: Use cases.
We can expect that in the near future, the list of available use cases, as well as real-life examples of AI in real estate, will grow and offer even more impressive solutions.
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