Real Estate Embraces For The AI Onslaught

Posted on Dec 2 2019

Over the next 20 years, there will be few industries and professions that will have not been significantly impacted by the presence and power of Artificial Intelligence (AI).

The next AI frontier is real estate which, if one follows the money, makes perfect sense: In 2017, real estate accounted for a whopping 13.4 percent of the GDP. The challenge for AI, however, is whether it can competently assume the roles of humans in a profession that is heavily dependent on providing the personal touch to the buyer and seller in every transaction.

Tell that to Skyline AI, which offers an AI platform with a diverse range of real estate-centric applications that are supposed to make the professional more efficient and the clients more satisfied. Skyline's AI platform professes to be able to:

  • Predict highly accurate future rent and disposition prices
  • Target opportunities with optimal risk-reward ratios
  • capture arbitrage between the asking and market prices
  • Identify market trends in advance
  • Locate and exploit market anomalies
  • Create timely renovation decision options and rent increase recommendations

Other real estate AI players include:

  • Proportunity - Proportunity promises advanced algorithms to accurately forecast which homes and neighborhoods will experience the biggest rise in value over a time. When tested, Proportunity's AI had an 85% success rate.
  • Blok - The algorithm in Blok's AI is used to pull housing data to create an estimated price. Blok charges 0.75 percent of the sales price for its services.
  • OJO Labs and Roof.ai - Both companies provided chatbot services (virtual assistants) to help prospective buyers make more informed decisions.

While these tasks may replace human function, they are still far short of the relationship building that has thus far been the exclusive domain of humans.

Enter "AMY," the brainchild of TheMove. Billed as "smart, reliable, and friendly, AMY is TheMove's first generation robotic real estate agent. As a "Digital Superagent," AMY is pioneering the real estate transaction process through ultra-efficient data presentation and follow-up.

REX Real Estate also offers AI agents that can provide online ads to prospects and analyze online activity to identify potentials buyers and sellers. REX charges 2% commission and claims to have conducted over 200 transactions over the two years from 2016-18.

The old marketing saying is, "People buy from people." Time and AI will tell us if that is true.