Real estate has been known to be slow when it comes to adopting modern technology, but the introduction of artificial intelligence (AI) is changing that. The use of AI is revolutionizing the way buyers and sellers interact with real estate agents, which in turn is reshaping the competitive landscape of the industry.
Ryan Serhant, the CEO of Serhant and a reality TV star known for “Owning Manhattan,” believes that AI is transforming real estate by automating various tasks such as generating property listings and conducting neighborhood analyses. This automation allows real estate agents to focus on building deeper relationships with their clients rather than just providing access to information.
Serhant emphasizes the importance of personalization in the real estate industry, especially since buying a home is one of the most significant investments for most Americans. He sees AI as a tool that can provide agents with more time to offer personalized attention to their clients, ultimately enhancing the client-agent relationship.
Although AI tools are being used to streamline lead generation, automate marketing campaigns, and provide predictive analytics, Serhant points out that the critical role of the agent in delivering top performance remains unchanged. AI is meant to enhance the agent’s capabilities, not replace them.
One of the advantages of AI in real estate is that it allows agents from smaller boutique firms to compete more effectively with larger corporations by providing access to real-time market data and sales insights. This levels the playing field and allows agents to focus on empowering their clients rather than just being the largest in the industry.
While the real estate industry is still in the early stages of adopting AI, there is a growing interest among professionals. However, there is a significant knowledge gap when it comes to understanding AI technologies. Serhant believes that agents who grasp the potential of AI will have significant opportunities to gain market share in the next two decades.
Despite the benefits of AI, there are risks associated with tech innovations, such as wire fraud. The FBI reported a significant increase in wire fraud cybercrime losses in real estate transactions, driven in part by advancements in AI technology. Serhant acknowledges the risks but believes that the industry will adapt and implement rules to combat fraudulent activities, similar to how it has dealt with issues like digital listings in the past.
In conclusion, AI is poised to revolutionize the real estate industry by enhancing personalization, improving efficiency, and empowering agents to build stronger relationships with their clients. While there are challenges and risks associated with AI adoption, the potential benefits for agents, buyers, and sellers are significant. Embracing AI is not just a choice but a necessity for real estate professionals looking to stay competitive in a rapidly evolving industry.