Is AI Threatening The Role Of Human Real Estate Agents?
Artificial intelligence is huge right now, with brands from all over the world working hard to integrate this type of machine learning technology into their electronic devices and software solutions in order to rule their industry.
Google has developed artificial neural networks, with one of their most prestigious developments being the DeepMind project, which is an AI machine that can dream.
Businesses in almost every industry are now turning to AI to help them get up to speed and to automate a large number of tasks, making them more efficient and ultimately leading to more money landing in their pocket.
Real estate agents have recently started to wonder if AI might be a threat to their positions, so we decided to take a look at how this technology is currently used in this particular industry.
How AI Is Helping The Real Estate Industry
Many businesses that focus on the real estate industry have already implemented technology that uses artificial intelligence in order to help them succeed in today’s competitive business world.
Skyline AI recently raised funds that exceeded $3 million and used these funds to create a platform that would run an investor’s preferences against a database filled with data from multiple real estate databases, allowing the investor to uncover the best opportunity that is currently available for them.
Enodo developed an AI-driven app that offers business people an opportunity to find the perfect apartment dwelling to invest in, while REX Real Estate used over $25 million to fund a project that, according to them, has now mostly replaced the need for a real estate agent in the process of buying and selling properties.
There are numerous advantages of artificial intelligence that need to be noted, as the technology can greatly help real estate agents become better and more proficient in their jobs – which is to ensure they find the best property for the client and then do everything in their power to close the deal.
Let’s consider a few applications of artificial intelligence in the real estate industry:
- AI-powered bots can provide 24/7 support and assistance to customers who might be interested in purchasing property through a particular real estate agency or utilize the expertise of a specific real estate agent.
- AI can be used to filter through thousands of properties to find the ones that will be suited a specific client’s preferences. Extensive data can be provided, and the technology will filter through the properties available much faster than any human real estate agent would be able to; thus delivering a much faster turnaround time and also providing the client with better recommendations.
- Customer relationship management software are also getting smarter and using artificial intelligence to show real estate agents which clients are worth more than others, who might be declined for a home loan application, and other essential data points that will help the real estate agent focus their attention on the clients that will bring them profits, instead of waste their time on clients who might not be worth much to them and lead to a waste of time.
Why AI May Not Be Enough To Overtake Real Estate Agents, Yet
While it is obvious that the advancements in artificial intelligence have numerous advantages in store for the real estate industry, there are some companies who are aiming to replace the role of real estate agents with virtual assistance, artificial intelligent property search technology, and similar developments.
This would ultimately help to save a significant amount of money, considering the fact that a real estate agent needs to be paid a hefty commission, while the same does not apply to a machine.
While some concerns have been raised, industry experts have advised real estate agents not to worry yet, as they still play a crucial role in the selling part of property management.
Instead of worrying about AI taking over the industry, real estate agents should rather consider how they can work alongside the technology to make their jobs greatly more efficient, and to provide their clients with much better customer services and results when it comes to presenting property recommendations in a timely manner.
There are also still several departments where AI will not be able to overtake the usefulness of human real estate agents, which is why agents are still needed during the entire process, even when AI is used to find the right property for the client.
For example, when a house is for sale, and a client is interested, it does not only need to be recommended to the client but also presented.
This is where the real estate agent has the time to shine, as it’s their duty to present the house to the client and to make initial preparations in the house in order to increase the chances of closing the deal with the particular client.
Furthermore, many clients are buying their first house or have another particular story to share – After all, buying a house isn’t just about crossing off requirements on a checklist. The process can be a roller-coaster ride.
A machine powered by AI is unable to deliver compassion and an emotional bond with the client, and share in their story – and these are the aspects that often help the real estate agent finally close that deal and sell the house.
Even though the real estate industry is seeing many companies implementing techniques that take advantage of artificial intelligence to automate many of the tasks that real estate agents are responsible for, the technology still has a long way to go.
Right now, agents are still required to provide potential buyers with that personal connection that they so often seek, and agents are still needed to improve the chances of closing a deal.
By Vladimir Mirnii