AI could automate 37% of real estate tasks and represent $34 billion in operating efficiencies by 2030, according to Morgan Stanley.
AI can also dramatically cut costs. According to Morgan Stanley, one company said 85% of its customer interactions in the self-storage business take place through self-selected digital options, and AI-powered staffing options reduced on-site labor hours by 30%.
Given this increase in efficiency that AI can provide, it could be extremely advantageous for real estate firms looking to optimize their offerings, automate marketing tasks, and analyze media coverage of their properties. As such, we see opportunities for real estate companies to expand by taking advantage of AI tools.
In this blog post, we’ll explore:
- How AI can be used in real estate.
- How we can help real estate clients.
- Concluding thoughts.
How AI can be used in real estate
AI can help the real estate industry through management, sales, office and administrative support, installation, and maintenance and fixes, according to Morgan Stanley.
In particular, AI can benefit real estate in three key ways, according to the National Association of Realtors:
Predictive Analytics – AI’s predictive capabilities can be used to evaluate market conditions, assess property values, and spot investment opportunities with increased accuracy. This can help real estate companies make more informed choices, reduce risks, and enhance their strategies.
Generative AI – Generative AI can automate product listings, property searches, marketing content, and more. This lets businesses save precious time and resources so they can focus on higher-level strategy work.
Computer Vision – Computer vision can analyze videos and images to extract valuable information and spot property features like gardens and swimming pools. This can offer viewers a more holistic view of the property, improve the efficiency of property evaluation, and enhance the accuracy of product listings.
JLL’s 2024 Future of Work survey found that 91% of companies plan to have AI accompany humans in corporate real estate efforts in the next five years, and over 60% have already started planning AI use cases for their real estate functions, according to JLL.
Over 500 companies offer AI-powered services to real estate globally. Some of their use cases include document sorting and data standardization, IoT data mining, satellite imaging, reality capture for construction site surveillance, scheduling for capital and construction projects, and recommendation and match-making for leasing and investment purchases.
While real estate companies can derive several benefits from using AI, they must be prepared to embrace the change, according to McKinsey and Company.
To adapt their work hierarchy and equipment to AI, real estate employers can do the following to strengthen leadership and preparation tools:
- Align the C-suite with a business-led roadmap that ties to a specific part of the real-estate value chain, and have executives who embrace experimentation as they adopt AI.
- Create a prompt library that retrieves results from foundational models in a real estate context. For instance, if someone asks for GenAI to deliver an initial email to a lead followed by a follow-up email, the model can use foundational real estate data to create fitting responses. A rigorous process of testing and refining must be conducted to get the best results.
- Add digital tools that promote action. For instance, when generating marketing copy, you may need a refining tool to ensure the content is on-brand and appealing to your leads. If you have a customer service AI chatbot, giving the chatbot prompts for specific client interactions could be useful.
- Invest in a robust technology stack, crafted thoughtfully to link vendor systems to data across property management, customer relations, and maintenance portals.
- Expand operating models to match the levels of technology. For instance, data engineers and prompt engineers may be needed, and people in existing positions may be able to delegate tasks to AI.
- Lastly, companies should identify and correct risks, such as biases in training data.
How we can help real estate clients
With our specialties in implementing AI agentic solutions and predictive analytics technologies, we can help real estate companies develop systems that help them monitor their market stance and determine the best options to move forward.
Conclusion
In conclusion, AI can be a valuable asset to real estate companies looking to slash time, energy, and costs.
If this sounds like something you’re interested in, please feel free to contact us. We’d love to learn more about your business and how we can help you.