The Real-estate industry has been immune to welcome innovations. There are seldom any noticeable developments with regards to technology. There can be many explanations to the real-estate industry being so reluctant towards AI, the main reason is the essence of technology.
The AI-powered tools, websites and applications can be as capable as the data fed into them.
The nature of real-estate data is unstructured, often deeming it expensive to onboard any form of technology. As per the Morgan Stanley Digitization Index, the real estate industry is the second least digitized industry in the world. But, in recent years, many industry elites and startups have started to recognize the immense potential of AI, and what it has to offer.
The digitization globally helps in growing the number of data sources. Bigger organizations are working towards creating organized data. All the information gathered or user-generated can be analyzed and turned into valuable insights. According to PwC, Al is capable of contributing approximately $15.7 trillion to the global economy by 2030.
Let’s look at a few ways AI is transforming real estate right now:
Searching for a home is easier:
Searching for a new place to buy or rent is never an easy task. The property-search engine helps by filtering out the best option for you based on attributes like location, budget, bedrooms, and more. The aggregator websites have proven to be a success in recent times leaving potential buyers with more options than they are willing to look through. This is exactly where AI-based algorithms come in handy.
The system can be trained to show best offerings on top of the search results and recommendations amongst other listings accordingly. It also takes into consideration the preferences of other users that have looked at similar properties. This helps in identifying search patterns and making predictions based on high-level personalization.
Prediction of value:
One of the most prominent features of AI is the ability to predict the future. Real estate is an industry that involves higher stakes and higher rewards. The ability to predict the outcome can be proven to be extremely valuable. If the users can use AI to anticipate their specific requirements and show results highly relevant to that search query, it can provide a huge competitive advantage to you.
It will not surprise you that the successful and popular applications powered by AI in real estate are investment focused. These applications are capable of utilizing different sources of data and analyzing over thousands of features of each property.
Did you know that there is a special CRM that is capable of analyzing thousands of attributes to categorize customers with real intentions to buy/rent a property from those who are browsing out of curiosity. Additionally, this algorithm can identify what type of property the customer is looking for. This can help the agents in saving time and efforts by dealing with customers based solely on their interests.
Globally, many mortgage lending entities are currently using optical character recognition (OCR), which helps lenders to automatically read and comprehend data from borrowers documents. OCR has been a part of the industry since decades, but the technology has its limitations. It can only pull accurate information from template-based documents. The unfortunate part is that the majority of documents are unstructured, which makes OCR rely on humans to validate the work. Machine learning and AI tools on the other hand are helping to capture significantly more information with higher accuracy and less human error.
The Bright Future for AI in Real Estate
The amount of data produced in the real estate industry, the rapid penetration of AI into real estate comes as no surprise. However, there is a long road ahead before we see AI adoption at scale.
Although real estate companies are pacing toward better data sets. The majority of accumulated data lacks standardization. The faster the organizations will learn how to enforce standards into data, the faster both customers and businesses will be able to reap AI’s exceptional benefits. The adoption of AI cannot happen at once but rather continuously. The older companies might have enormous amounts of historical data, but capturing and predicting user behaviour based on that data can help with short-term and long-term profits. Companies need to plan their long-term objectives and start carefully collecting corresponding data for their website with search features powered by AI. For more information, visit www.galaktic.co.