According to Daniel Faggella, founder/CEO of Emerj and expert on the competitive strategy implications of AI for business and government entities such as the UN, World Bank and INTERPOL, AI is expected to grow to an unspecified market size of $1.2T by 2025. Within the real estate market, AI is expected to grow to $89.8B by 2025, according to Adrian Fisher, founder and CEO of PropertySimple.
In writing for Realtor Magazine, Fisher indicated four major uses for AI that would benefit real estate businesses. Those four uses include:
- Accurate Property Valuations
- Because property valuations are “tricky,” AI can cut down on that trickiness by using Automated Valuation Models or AVMs.
- AVMs use machine-learning software that analyzes comparative properties regarding information on local neighborhoods, schools, public transportation, etc. to better estimate property value.
- AVMs, according to Fisher, can also predict where price compromise might be likely.
- Ad Campaigns for Lead Generation
- AI is improving ad creation and consumer targeting.
- AI ad creation and targeting seamlessly creates custom video listings and upcoming open houses in the MLS.
- AI system notifies the user via text/email with every new lead.
- AI system reports detailed ad performance and reports who the ad has reached.
- Increased Client Engagement and Lead Conversions
- According yo the 2018 State of Chabots Report, 69% of consumers prefer communicating with chabots for “quick” information such as lot size, square footage, numbers of bedrooms, etc.
- Chabots are available 24/7; you are not.
- Streamlined Data Management
- AI can be used for demographics, market research and financial/environmental analysis.
- AI can predict the type of property that will become popular.
- AI can spot inaccuracies in legal papers, appraisal reports, zoning regulations, etc.
The bottom line, according to Fisher, AI saves real estate professionals time, makes them more efficient and renders more thorough, better coordinated lead generation tool and research analysis.