5 Ways AI is affecting the real estate industry
9 June 2020 | 5 min read
What is Artificial intelligence
Artificial intelligence (AI) is a branch of computer science concerned with building smarter machines that are capable of performing tasks that typically would require human intelligence.
AI and automation technologies are great tools to maximize productivity while minimizing the number of errors and reducing the cost. The easier, more straightforward tasks will be fully automated, while the need for more technical, social and creative skills will continue to grow.
45% of total economic gains by 2030 will come from the use of AI in solving data issues, according to this study by Pwc.
The real estate industry is one industry that could benefit greatly from this opportunity (due to its late mover position).
AI applications in real estate
Now that we’ve established that the real estate industry holds a great future with some promising opportunities, we still have to define what those applications are.
Here are the 5 main ways artificial intelligence is reshaping the real estate industry:
- Real estate marketing
- Data enrichment
- Real estate lead generation
- Budget control
- Real estate automation
1. Real estate marketing
Real estate companies and websites could use AI for lead generation and management by showing the right promotional material to prospective buyers and lenders.
There already exist AI engines that are able to detect in which phase of the customer journey, (such as exploration, specific search, buy/rent, moving, etc.) a user is and the type of user (investors, first-time buyers, DIY’ers…) they are. Using those insights to influence what content you promote or who you target could be very powerful. Artificial intelligence can also be used to generate future recommendations based on the user’s behavior on the website.
It could also help the broker pick which properties to buy or sell, based on his record. AI-powered chatbots are also getting more and more popular on real estate websites; they could answer the questions of potential prospects within seconds without the need for a real estate agent.
2. Data enrichment
Artificial intelligence is already helping many companies to classify their massive amount of collected data, but it could also help them by enriching the data using Natural language processing (NLP).
NLP can analyze a listing’s description and gather additional data that wasn’t featured in the metadata (data that can be processed by a computer such as price, number of bedrooms, and more). A lot of information is available in the text description of a listing. It contains important real estate related words which aren’t available in the metadata.
Some NLP engines are specifically developed to extract real estate related data. Words such as ‘terrace’, ‘kitchen’, ‘bath’, ‘garage’, ‘fireplace’, and more are derived from the descriptions. Based on this data, the metadata can be completed and a high-level data moderation can be done.
3. Real estate lead generation
AI could also improve the connection between the broker and its clients by providing them with visual dashboards. This helps them get some important insights about their customers, such as their profile and what they are looking for in a listing.
Deep learning is used to collect data from thousands of profiles and analyze user behavior such as their previously viewed listings and search history.
These dashboards offer a quick way for brokers to have a visual summary of the data they’re interested in and offer an easy way to segment their clients. They could also see which users are most or least likely to convert. A clear and visual dashboard helps the UX team to get insights into the user interactions to optimize the real estate website.
Besides that, it’s also a useful tool for sales representatives to help them convince ad publishers, such as banks and renovation companies to publish their ads on their real estate portal, by showing them the size of the audience they can target.
4. Budget control
Even with the expertise of the best project teams, most real estate projects still go over budget. Budget overrun has been one of the biggest challenges for real estate in the past. Artificial intelligence has proven itself to be a great tool for dealing with those challenges. Deep learning is used to predict potential cost overruns based on the project size, contract type, the level of experience of the project managers, etc.
Artificial intelligence also helps to set up realistic timelines for future projects based on past projects and historical data.
It also gives the opportunity to staff members to access real-life training material which helps them enhance their skills and knowledge quickly. This reduces the time taken to onboard new resources onto projects. As a result, project delivery is facilitated.
“ AI takes care of all the repetitive tasks and lets them focus on the important things like connecting with their customers. “
5. Real estate automation
Manual and repetitive tasks can be automated using extraction and classification technology. This could help real estate agents to save some valuable time which they could spend doing more creative or more challenging tasks, such as improving customer service.
Not only does it increase their productivity but it also minimizes the errors. But also, due to pattern recognition abilities, artificial intelligence can be useful in forecasting risks in manual property appraisal.
This is possible by taking into account factors like transportation and infrastructural improvements, environmental changes, neighborhood, and other features that have an impact on property value.
While this list just scratches the surface of what changes AI could bring to the real estate industry in the future, it shows how it’s making life easier already for realtors and real estate companies.
AI takes care of all the repetitive tasks and lets them focus on the important things like connecting with their customers, while also saving lots of construction time and making the real estate industry more efficient as a whole.
Here at Co-libry we are always looking for ways to get the most out of this promising technology. We are continuously looking for new ways to implement AI and recommendation engines in real estate portals to make the real estate industry even more efficient.
Request a free demo here to see for yourself how artificial intelligence can change your real estate portal.
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