AI is proving to be one of the most disruptive technologies the world has ever seen. While we’re still figuring out how to integrate the tech into businesses and everyday lives, there’s no doubt that we’re already seeing a huge impact in the business world, with just about every industry being impacted in some way. Today, we’re shining a light on the real estate industry, delving into the ways in which AI is impacting real estate agents.
Listings
One of the most important aspects of a real estate agent’s job is property listings. Advances in technology usually bring about a shift in the way we view properties. Pre-internet, individuals interested in buying a new home would do so by physically visiting a real estate office and viewing their listings. Post-internet, the same people could do this online from the comfort of their own homes using real estate agents’ websites. This brought about new ways to reach customers, one of which was through optimising your website and listings for search engines, a process known as SEO (search engine optimisation).
In the AI era, SEO is being joined by GEO (generative engine optimisation), which is the process of optimising your business for AI platforms. With more users turning to AI, real estate and real estate companies must find ways to appear in AI summaries and AI recommendations.
New Competitors
New technology brings about new companies. Take the internet for example, websites like Purplebricks and Houzeo were created off the back of this technology. Now, as we enter a new wave of tech, it’s inevitable that innovative entrepreneurs will find ways to turn AI into profitable ventures. With artificial intelligence, it may not be long until personalised property recommendations are served to us based on our interests and behaviour.
It’s also worth noting that some AI real estate tools may become an opportunity rather than a threat. For example, hyper-accurate desktop valuations could be made possible with the help of artificial intelligence.
If you operate within the real estate industry, it’s important to have your finger on the pulse to be aware of any new threats or opportunities that emerge as a result of AI.
Markets
Real estate markets are impacted by many different factors. While it may not be an obvious link, major advances in technology do impact real estate markets. Looking at AI, it’s expected that San Francisco in the US will be one of the major hubs in terms of AI innovation, bringing an abundance of jobs to the city in the process. Obviously, more jobs increase the demand for real estate in the city, which will drive the price of San Francisco property. Cities that are known for being early adopters of tech may also see a rise in tourism and immigrants; the likes of Singapore and New York are expected to be some of the first to actually start implementing AI initiatives.
Final Thoughts
AI will impact every industry, and for most, it already is. Real estate is no different, and while the technology is slowly changing the way real estate agents operate for the time being, expect the way we look for properties to shift dramatically over the next five years.
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