Last week, we discussed the general use of generative AI in various sectors. We noted some of the potential downsides to using this new technology, such as the adverse effect on education, intellectual property, and the use of deepfakes for malicious or even criminal purposes. Even though there are reasons to limit AI use in certain sectors, generative AI can certainly be extremely helpful when used for certain purposes. Today, let’s talk about how AI has been used in real estate and how it can be expanded.The Real Estate Institute of Canada acknowledges that the legacy real estate industry is notorious for slow technological evolution. Recently though, they state that AI is among the top three technologies expected to change the industry within the next coming years. They reported on JLL Technologies’ Global Real Estate Technology survey, where respondents indicated that the technologies with the greatest expected impact were machine learning, AI analytics, and generative AI. The survey asked respondents to consider the positive impact on productivity and labour dynamics in the real estate industry. The survey also showed respondents ranked machine learning and generative AI in last place for “technology rank by level of knowledge”. It seems that though people do see AI use spreading and do expect it to impact their industry, the majority don’t know much of anything about it.The Real Estate Institute of Canada also lists some AI impact areas. The areas are: property search and valuation; customer interaction; data analysis and insights; operational efficiency; marketing and lead generation; and investment, risk analysis, and compliance. They say AI is revolutionizing the real estate industry through “automation and data analysis.” Those with a significant amount of proprietary data are poised to shine in this new environment.Royal LePage talks about the emergence of AI through predictive analysis. Predictive analysis allows people to make informed and strategic investment decisions. They say it allows agents to make more informed decisions on pricing, targeting clients, and investment recommendations. They say an example of AI in predictive analysis is market trend forecasting which uses historical data, current economic conditions, demographic trends, and more to help predict what the housing market will look like. Another example is investment risk assessment, which takes into consideration factors like “market volatility, economic conditions, and property-specific data,” which they say enables investors to make the best possible decisions.&nbsp;CBC wrote an article on AI in the real estate industry and highlighted the story of a man who used AI to plan how he would stage his house. The article notes the expenses, time, and energy required to stage a home for listings. The article says the agent pays $40 for each picture using AI and gets to see what the home would look like if it were staged. He then could go on and stage it more efficiently. CBC also mentions the use of virtual reality headsets for home tours. Users would simply put on their VR headset and walk through the property as if they are actually there.The Real Estate Institute of Canada raises an important point: AI is democratizing technology by making advanced tools accessible to everyone. Platforms like Giraffe360, for example, now enable even smaller real estate companies to offer virtual property tours – a feature previously reserved for larger firms with greater resources. Still, companies with significant proprietary data continue to hold a competitive edge in this evolving landscape.AI is also proving useful for individual homebuyers and sellers, not just industry professionals. CBC recently reported on how AI chatbots, such as ChatGPT, assist homebuyers by providing quick information. When asked about the most affordable neighborhoods in London, Ontario, ChatGPT generated a list of options across the city. In another instance, it provided insights into family-friendly areas. Brokerages that can integrate this technology into accessible, user-friendly formats will deliver exceptional value to their clients.Mortgage fraud is another area where AI offers promising solutions. This issue has long been a concern in the industry, with evidence suggesting it drives up housing prices beyond true market value. AI can streamline the vetting and verification of applications, improving both efficiency and accuracy – a welcome development for ethical buyers, sellers, and the broader market.Finally, while many industries express concerns about AI replacing human jobs, some realtors see things differently. In a CBC interview, a well-known London-based realtor dismissed fears of becoming obsolete. He explained that AI lacks the personal touch and nuanced understanding that agents provide. For instance, he joked, “I’m the one who will tell you if that house caught on fire because of a meth lab – that’s not going to come up on ChatGPT.” He believes that using AI for basic queries frees up agents’ time and energy for what matters most: personalized service. The result? Happier clients and more focused, efficient realtors.

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