Artificial Intelligence And The Real Estate Industry

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Artificial Intelligence And The Real Estate

Artificial Intelligence and technology had the first condition of possibility for its emergence, which was the creation of the first programmable machine. Alan Turing was the first to consider that a mathematical problem could be solved using an algorithm.

In short, the AI we know today is nothing more than Turing’s idea. A program composed of algorithms that the system reads as a language to learn and execute actions by itself.

Artificial Intelligence And Technology As Solutions

This being so, AI has been created to emulate human cognitive processes by making them increasingly efficient. Therefore, specialists have designed neural networks that can learn in a short time.

Like the brain, artificial neural networks are composed of neurons grouped in different layers. Each of them receives a quantity of data from which it learns to answer what we want. Thanks to this complex set of connections, it has been possible:

  • Predictive analysis of trends and problems.
  • Natural language processing: audio and text.
  • Artificial vision to create solutions.
  • Data extraction and analysis.
  • Decrease uncertainty by helping with decision-making.

The Changes That Are Expected With Artificial Intelligence And Real Estate Agencies

One of the most exciting changes on the horizon for the real estate industry is the optimization of customer service. Hundreds of companies spend a large amount of their budget on paying long working hours to agents in charge, but this may come to change radically.

In 2016 Inman conducted an experiment in which an agent and a bot had to deal with the requests of the same users. The result perplexed everyone because most customers preferred the automated system’s treatment. This gives an idea of the complexity of a neural network.

As more companies venture to implement chatbots to replace the human brain partially, this expense will decrease. Once the bot has been trained, it needs no additional investment. The network increases its intelligence every minute and could become a competitor for humans.

Projects That Are Being Carried Out In This Industry

The largest Artificial Intelligence project in the world is the Zillow real estate platform. The United States is one of the most active countries in the sector. Therefore, they have seen the need to implement solutions with Artificial Intelligence to handle the huge demand.

The company provides a tool called Zestimate. It is responsible for providing an assessment of the characteristics that the user is looking for. Likewise, this AI resource incorporates a neural network that performs predictive analysis about property prices with terms of up to one year.

The typical activity of scrolling through endless listings of offers is a thing of the past. The Singapore government has eradicated this practice for buyers and brokers. After studying customer complaints about long and tedious real estate processes, they found the solution in AI.

They have undertaken multiple efforts aimed at automating contract templates. Additionally, they are introducing predictive systems to manage transactions and property management.

It is not a practice that needs the most advanced technologies in the industry. Many countries and companies have been using AI in their business for years. For example, Frementa uses an AI system that allows them to filter information, avoid duplicate offers, and optimize users’ search engines.

Pros And Cons Of These Changes

Pros:

  • Fast search: both customers and intermediaries will not have to search for hours. AI algorithms will be in charge of narrowing the search spectrum using a database that adapts to the user’s profile.
  • Predictive systems: you don’t know which properties to invest in? An AI system can project market prices. Thus, you will have accurate data on property prices for more than a year.
  • Better customer service: neural networks can perfectly emulate natural language. In this way, the salary of customer service personnel can, to some extent, be dispensed with.
  • Massive data management: a real estate company must handle a considerable volume of data. AI makes it possible to organize, manage and automate this information, making it more profitable.

Cons:

  • Human replacement in customer service: a change is expected that could replace staff in some jobs. Still, it is not certain that most employees will become expendable. Instead, they will have to learn to use technology as part of their duties.

What Aspects Of AI Do We Already See In Everyday Life?

You probably don’t know how important Artificial Intelligence is in everyday life. It is becoming so essential that we already take its existence for granted. For example, you have probably overlooked the use of voice assistants. This software uses the imitation of natural language.

The Nielsen Company found that 24% of North American homes have at least one of them. They are useful for making reminders, searching for information, or playing music automatically.

Smartphones are also powered by AI. Google Assistant and Siri are products of this technology. They interpret your voice to help you perform tasks on your phone. Similarly, something like this happens with the camera when you set it to portrait mode or to recognize faces.

Google search recommendations work on the basis of an algorithm. This predictive technology tool comes from a database based on your preferences when you use the browser. Social media platforms make the experience enjoyable because it learns from your likes and dislikes. Pinterest sends you suggestions based on AI software.

Final Considerations

Here we think that, inevitably, there will be changes in the real estate sector in the coming years. From the present moment, transformations are taking place that will set new standards in the future. But, far from nurturing the vision of scenery where there will be no place for humans, we believe that man must be incorporated into this new order.

Ten years ago, we would not have imagined that human labor would have adapted to technology as it has done so far. Therefore, it is not advisable to be afraid of AI. Some jobs will be lost, but others will evolve to a more advanced state.

Many competitive challenges are coming in the next decade. Those challenges come with countless positives that will turn the market around. Real estate companies will increase their productivity, and everyone will profit.

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Preeti Shah is a person who loves checking out different styles and designs of houses. She took interior designing in college and is practicing in the field of home improvement for five years now. In her spare time, she is usually searching the web for interesting and fascinating home designs.

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