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3 Ways AI is Revolutionizing the Real Estate Industry
An AI-powered world is not a futuristic prediction — it is how our society is currently shaping up to be.
From self-driving cars to manufacturing automation, the impact of AI on industries across the world is expected to increase productivity by 40%.
When it comes to real estate, artificial intelligence (AI) will lead to a deeper understanding of the market and open up new opportunities for the industry.
AI’s ability to learn and derive insights from the massive deposit of data in the real estate industry will eventually lead us to more efficient agents and brokers, more satisfied clients, and outsized returns for investors.
Let’s see how Artificial Intelligence is revolutionizing the real estate industry today.
Leveraging Big Data
Traditionally, realtors and firms made decisions based on retrospective data, with a bit of intuition thrown in the mix. However, with the widespread adoption of Big Data today, the real estate industry is undergoing significant transformations.
It is quickly resolving the disconnect between the availability of data and the difficulty of harnessing it for actionable insights.
Now, stakeholders can make smarter decisions, as data analysis enables them to predict market risk and industry trends with greater accuracy.
Take BuildingIQ for example; this AI-powered application leverages data analysis to derive energy-based insights and services that allow for optimized energy usage, a higher degree of operational efficiency, and enhanced tenant comfort.
Similarly, CityBldr utilizes a unique combination of AI and data analysis to help property owners with single homes sell their property for the highest and best use; ultimately leading to higher returns.
Real estate investment decisions are based on complex data that helps investors understand the market, the condition of the asset, and make comparisons.
Traditional valuation models only included limited data sets; however, leveraging Big Data and Artificial Intelligence, investors can have a better understanding of the current market environment and factor in other variables involved in the deal.
For example, factors such as MSA level, neighborhood quality and condition, risk factors, and multiple asset level features play an essential role in deciding on the best investment opportunities.
With a real estate investment platform such as Skyline AI, the potential for the industry to benefit from such solutions is massive. By analyzing data streams that influence on-market and off-market deals, Skyline AI is a shining example of how machine learning can help investors gain a competitive advantage in real estate investments.
As Artificial Intelligence can help investors uncover patterns in data, stakeholders can predict future rent and disposition prices with greater precision, thereby remaining one step ahead of their competitors.
A house is usually the most significant investment a person makes in their lives. It’s only natural that customers require constant interaction to overcome their fears and make an informed decision.
AI-powered chatbots have taken over many industries. Businesses are spending nearly $1.3 trillion in an attempt to cater to the 256 billion customer requests that take place in a year. Moreover, chatbot integration can help businesses save an estimated $390 billion!
With chatbots, realtors can provide around-the-clock support, and automate commonly asked questions that don’t require complex human input.
Chatbots can also enable realtors and potential tenants to save precious time by collecting information from prospective renters. Chatbots will allow easy access to data and accelerate the buying process for consumers.
Apartment Ocean, a property management customer service chatbot that uses AI to enhance consumer interaction and lowers customer service costs by 70%!
Another digital real estate assistant, OJO labs, is developing an AI-driven personal assistant that will help consumers find the perfect house that aligns with their requirements.
With artificial intelligence paving the way for a more in-depth analysis, the real estate industry will be able to make smarter decisions and find new opportunities for improving the consumer experience and increasing investor returns.