The use of Artificial Intelligence is increasingly widespread in all business sectors, including the Real Estate sector. It is considered a way to gain more competitive advantages within the market.
Today, in this article by ShBarcelona, we discover where Artificial Intelligence can be applied and how the real property industry can benefit from it.
Table of Contents
The Importance of Artificial Intelligence
Artificial Intelligence is one of the latest trends in the technological development of the Real Estate market. It is an innovative technology that imitates the cognitive functions of human beings in a simulated way.
Explained in other words, the AI are software solutions programmed to learn and optimize themselves, solve problems, and exercise with human reasoning.
Artificial Intelligence has the potential to speed up and improve labor-intensive processes. Because of that, the companies can save a large investment of time and cost overall, but especially in the key areas of customer service and operational efficiency relating to their applications.
According to the Accenture Report, which estimates that if companies invest in Artificial Intelligence and human-machine collaboration, they could increase their income by 38% and the level of employment by 10% by 2022.
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Related article: 5 technological trends of the real estate sector in 2020
Applications of Artificial Intelligence in the Real Estate industry
1- Customer service: Chatbots
The same as leading messaging companies such as Facebook Messenger, Slack, or Telegram. Real estate agencies are also introducing some systems for automatic customer service, like Chatbots.
A Chatbot is a software application that is used as a personal online assistant. It is able to conduct direct conversations via text or text-to-speech. Therefore, our customers can be served in 24 hours of 365 days of the year.
Simultaneously, Chatbots can also support the Real Estate agents to better accomplish their heavy lifting jobs, like gathering information from extensive databases in seconds.
Moreover, based on the customer information that they accumulate over time, Chatbots become smarter and seek more appropriate solutions to customer problems.
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2- Property information verification
In many cases, the property information on the Real Estate directories may not correspond to the authentic data of the properties. This happens because they are unused to double-checking, or as there are too many properties and some data could be out of control.
In this case, AI allows us to automate the process of asking the General Directorate of Cadastre if the information we use on each property is correct or not. Like the addresses, the square meters, or if it has parking or not.
The information will be accurately analyzed in seconds, and a “false or true” answer will be provided. In this way, the date of the properties can be automatically verified. At that point, the clients can always receive the correct property information.
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3- Property valuation
Generally, agents rely on market knowledge, databases of homes for sale, and sold cases to properly value the properties. In other words, they rely on actual sales witnesses. But many times, the result of the analysis can be quite subjective, and as a result of human operation, there can inevitably be mistakes.
Thanks to the latest existing AI-based tools and AVM (Automated Valuation Models) algorithms. For agents, they can provide an objective property valuation to clients in seconds. Just selecting the dependable variables, like square footage, the number of rooms, or any other feature of the property.
Moreover, depending on which AVM or tool they use, they can include more specific variables on their calculations. For example, real witnesses, macroeconomic data, and socioeconomic indicators related to their location.
The application of AI can also be very interested in cases such as a massive valuation of properties in short term, and cases difficult to access in the properties.
Related article: Get your apartment evaluated for free
4- Blockchain: Financial operations of purchase and sale
Blockchain is a public ledger that records every user’s data and transactions. Its system is managed by a cluster of computers, but not owned by any entity. Public Blockchain networks guarantee that everyone can carry out transactions in the chain, any valid transaction will be added and everyone can access the system using a block browser.
Although the operations related to Blockchain, typically require more extensive ranges of applications. But if we properly register and organize all the users’ information with the Blockchain system, so we can easily recover or reuse it.
We will speed up and provide more security in financial operations.
For example, in the case of digital contracts, we will be able to reduce waiting time, mortgage approval periods, and other processing times. Here, the AI acts as a personal assistant, to help clients fill out documents when the database does not dispose of enough information.
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How AI will transform Real Estate soon?
As you can see, AI can be applied in many diverse areas within the Real Estate sector. Even though, not all participants in the sector already have it in use or development. But definitely, companies who embrace AI-driven technology will have a clear competitive advantage compared to those who do not.
In a near future, AI will become one of the most important resources for companies to enhance work efficiency and obtain more significant benefits.
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