Key Takeaways
- Real Estate companies are increasingly adopting AI and property technology to optimize various aspects of their business, including site selection, tenant screening, and customer service.
- While acknowledging the potential of AI, companies are taking a cautious approach, ensuring human oversight to maintain accuracy, ethical standards, and brand reputation.
- AI is being leveraged not to replace human jobs, but to enhance efficiency, allowing employees to focus on higher-value tasks and deliver a superior customer experience.
Early Stages of Adoption and a Focus on Practical Applications
The real estate industry is increasingly investigating and implementing artificial intelligence (AI) solutions across various business units. Companies are particularly drawn to AI’s ability to enhance efficiency, improve customer experience, and mitigate risks.
“We are evaluating the market every day and… because of the vertically integrated nature of our business… the job’s not done when the building’s complete,” says one real estate executive, highlighting the industry’s long-term perspective and commitment to leveraging technology.
One area where AI is demonstrating practical value is site selection. By analyzing demographic data, psychographics, and market trends, AI-powered tools like Placer AI are enabling companies to identify optimal locations for new developments and acquisitions. “When we’re trying to find locations… we’re relying very heavily on tools like Placer AI… to make sure that where we’re locating … our sites is where we’re actually going to have loyal donors,” says one executive, underscoring the importance of data-driven decision-making in today’s competitive market.
Balancing Automation with the Human Touch
Despite the potential of AI, industry leaders emphasize a balanced approach. Human oversight remains crucial in the early stages of implementation to ensure accuracy, address unforeseen challenges, and maintain ethical standards. “We want to make sure that we’re tracking [AI] and… we’re sort of in that phase where it might be duplicative and we might be doing a little bit of redundant work that maybe the machine … could be doing for us,” explains one executive. “But we want to make sure that the results that we’re setting as an organization and what we’re broadcasting… is correct.”
This cautious approach underscores a commitment to preserving brand reputation and fostering trust with clients and partners. By “shadowing” AI during its initial implementation, companies can identify and rectify any biases or inaccuracies in the data or algorithms, mitigating potential risks and ensuring ethical and responsible use of the technology.
Furthermore, there’s a strategic focus on utilizing AI not as a replacement for human jobs, but rather as a tool to enhance employee efficiency and allow them to focus on higher-value tasks that require interpersonal skills and nuanced understanding. In the hospitality sector, for instance, AI-powered systems are streamlining check-in processes and automating routine tasks, freeing up staff to engage with guests and provide personalized service.
“We’re really careful both in the hotels and the … apartment buildings [that] we’re really selling a lifestyle more than a building,” one executive emphasizes. “[Therefore] we’re careful not to replace the human part of it … We see it as not necessarily going to be a cost savings but a redirection of our labor to create better… a better lifestyle… for our guests in the hotels or for our apartment tenants.”
Addressing Affordability Challenges and Combating Fraud with AI
Beyond operational improvements, AI is also being seen as a potential solution to broader industry challenges, such as affordability and fraud. By streamlining tenant screening processes, AI can significantly reduce application processing times, enabling faster housing placements and increasing access to affordable housing options.
AI-powered systems are also playing a crucial role in combating fraud, which has seen a significant uptick during the pandemic. “[T]here is this fear of fraud in the market right now… fraud plays a huge role in the decision making process,” one expert highlights. By automating document verification and employing cross-source validation techniques, AI can detect inconsistencies and flag potentially fraudulent applications, saving companies millions of dollars in lost rent.
Conclusion
The adoption of AI in the real estate industry is still in its early stages but holds immense potential to revolutionize how companies operate and serve their customers. While a balanced approach that prioritizes human oversight and ethical considerations remains crucial, the industry’s embrace of AI signals a commitment to innovation, efficiency, and customer-centricity. As AI technology continues to evolve and mature, we can expect to see even more innovative applications emerge, further transforming the real estate landscape in the years to come.