AI in Real Estate: A Revolution or Just Another Tool?
The world of real estate is being infiltrated by artificial intelligence (AI), and the latest entrant is ChatGPT. It’s writing listing descriptions, assembling pitch packages, and even drafting reference letters for co-op board packages. And guess what? It’s not half bad at it.
But let’s take a step back. The pace of innovation is like a runaway train. We’ve gone from the Industrial Revolution, where everything was powered by human or animal labor, to a world where steam engines, automobiles, and personal computing have transformed our lives. Now, we’re in the era of AI, where machines are starting to think and do things that were once the exclusive domain of humans.
This raises a big question: What’s our role in this AI influenced world? For real estate agents, it seems clear that bots will become increasingly efficient at organizational tasks. They’ll get better at writing descriptive prose and will develop search skills that will make platforms like StreetEasy and Zillow more sophisticated.
But here’s the kicker. This isn’t just a threat to real estate agents. Reporters, stockbrokers, asset managers – they’re all in the firing line. As chatbots get better at researching and writing stories, and as program trading becomes more prevalent, these professions will need to redefine their value proposition.
However, there’s a silver lining. The degree of disintermediation will likely be influenced by the cost and quality of the product being sought. The wealthy will continue to retain wealth advisors, and the same will be true in the real estate business. Bots will have more impact in lower price point markets where inventory is more similar and algorithms can be applied across a broad selection of properties.
But when it comes to the most important life decisions, people still want people, not machines, to advise and inform them. We listen to tone of voice, watch body language, and pick up on subtle cues that words alone can’t communicate. For now, that’s where real estate agents continue to add value and where AI can’t follow.
