3 Areas of Artificial intelligence in Real Estate That Influence the Most!
Mahadev Desai is the Founder and CEO of gharpedia.com and SDCPL a leading design consultancy firm having strong national presence. He has a degree in Civil Engineering (BE) and Law (LLB) and has rich experience of 45 years. Besides being the Editor in Chief, he also mentors team at GharPedia. He is associated with many professional bodies. He is also co-founder of 1mnt.in the first in Industry software for contractors’ billing. He is a voracious reader, edited 4 books, and pioneer of book reading movement in Gujarat, India.
Artificial intelligence (AI) is the buzzword in the world of tech industry & its slowly gaining popularity within the layman like us. In general, artificial intelligence (AI) gives the computers a power to process the information and makes decisions like the human brain does! The most well-known examples of artificial intelligence (AI) are found in mobile devices and smart assistants, such as Apple’s Siri or Microsoft’s Cortana. For example, companies like Facebook and Amazon also use artificial intelligence (AI) for their businesses. And now, it is becoming a mainstay in several industries such as health, finance, transport, education, and so on. Unsurprisingly, the integration of this new technology – artificial intelligence in real estate is upon us. According to techjury – Artificial intelligence (AI) now impacts the real estate industry in the aspects of targeted advertising, market analysis, and client segmentation. It is fair to say that we are in a remarkable period of the AI revolution.
How Artificial intelligence (AI) Will Change the Face of Real Estate
Forget about the apocalyptic heresies you might have been told about artificial intelligence (AI). Machines are not here to rebel (yet) against humanity and take our work opportunities. According to a recent report by Accenture, investment in artificial intelligence (AI) and human-machine collaboration could increase a company’s revenues by up to 38% by 2022 and increase employment levels by up to 10%.
Let’s take as an example the commercial departments of consultancies and real estate agencies. The main objective of people who work in these departments is to detect the demand for spaces such as homes, offices, premises, and industrial warehouses that exists in the market.
All their efforts are focused on reaching the customers who, for example, want to change their office, rent another commercial space for their franchise, or build a new logistics warehouse.
How is this work done at the moment? How do these professionals capture customers? They do so by using the customers database, conducting positioning campaigns on the internet (SEO and SEM), placing posters on the street, or publishing ads on real estate portals. Basically, this model is reactive and unsophisticated — intermediaries rarely anticipate the needs of their clients.
In the near future, this model of advertising will not be enough. Marketers and intermediaries must learn how to use artificial intelligence (AI) and big data to develop algorithms, which will help predict demand before it even occurs. Then, there will be no longer to make sterile cold calls to hundreds of companies to ask if they need real estate services. Only companies and individuals that are already known to have this need will be contacted.
Meanwhile, artificial intelligence (AI) also provides added value in the reactive attention of demand. Recently, an experiment was carried out in which a bot (a robot) competed with several real estate agents. The experiment consisted of giving the bot (a robot) and the agents the basic parameters of the desired home so that both could make a selection of three houses for “the client.”
To serve as a client, a judge was appointed who impartially assessed the selections of the bot (a robot) and the agents.
You have already and rightly imagined that artificial intelligence in real estate (machine) won by a landslide. The dwellings selected by the machine were more adjusted to the needs of the client. The bot (a robot) was able to understand better and more quickly what the client was looking for!
What does this mean? Are the commercials going to disappear? Not necessarily, but in the future, real estate marketers will not need to invest time in making selections but focus instead on accompanying the client in other phases of the commercial process.
In short, the challenge facing the real estate sector with its commercial staff is to provide them with the necessary tools and training in the field of artificial intelligence (AI) in such a way that they can be less commercial/administrative and more commercial/consultants. When it comes to large-scale businesses like real estate sector, AI could act in a similar role to management consultants: like taking a birds-eye view of the business and helping to improve operations, cut costs and improves the general efficiency. The tasks susceptible to automation, such as detection of the demand or the selections of real estate, will have to be left to the machines.
3 Areas of Artificial intelligence in Real Estate
01. Property Valuation
This is one of the first AI applications that the artificial intelligence technology had had in the real estate sector since its evident emergence a few decades ago.
Today, many property evaluations are conducted via traditional statistical techniques with existing error margins that could be reduced by implementing deep learning models. The technology of Artificial intelligence in real estate helps to drastically decrease the human errors in real estate evaluation. Hence, the estimates will have more accuracy and will give more indications to property values in the future.
Currently, the development of this subject is focused on the application of the RNA system, which reproduces the functionalities of the human brain on a small scale.
However, although artificial intelligence (AI) already allows obtaining property valuations by entering simple variables (i.e., number of rooms, square meters, location, etc.), for the moment, this system does not replace humans but rather assists them.
02. Real Estate Portals
One of the most innovative AI applications is the one used in the real estate portals. It applies to the analysis of millions of images that the portal stores. In this aspect, artificial intelligence (AI) can be used to generate descriptions and labels automatically.
Apart from saving a lot of time on this task, it allows making the classification of the content much more efficient than the one generated when it is left in the hands of the end user.
03. Virtual Monitoring
One of the significant advances that the management of construction projects has experienced using the AI applications to monitor the progress of construction works. This application allows you to make forecasts about the viability of land, the deviations of terms, or the possibility of surcharges /variables associated with the project. All these are possible thanks to the processing of large volumes of information.
The world of AI revolution, technological startups, and disruptive new technologies are also knocking at the doors of traditional sectors of the economy such as real estate.
The field of artificial intelligence in real estate sector is so wide that this technology is being introduced for different applications and fields. In the nearest future, for real estate companies to succeed or keep competing, they would have to get along the line by adopting artificial intelligence (AI) for data gathering, property evaluation, monitoring of works, and accurate predictions of demands before they occur.
Now we must wait for the technology to continue advancing and make us available effective tools for the pre-sale and after-sales in real estate.
Ultimately, Life happens where you live and this is the future and it’s important! We owe it to real estate consumers to improve this experience! Let us know your thoughts and share your ideas!