AI will impact the real estate industry and improve efficiency in many areas. However, there are certain aspects of the industry that will remain unchanged.
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Recent tools like ChatGPT, Jasper.ai, Compose.ai and others have brought much buzz around artificial intelligence (AI). I think we as an industry need to embrace forward-leaning technology. While many see it as the demise of the real estate agent, I disagree. We have weathered “the sky is falling” predictions for years. Here are ten places real estate professionals are safe from AI.
AI cannot replace the importance of personal relationships in the real estate industry. Building trust and rapport with clients is a crucial aspect of real estate. The human element is something that AI is not able to replicate. It is more important than ever to double down on investing in driving depth and loyalty with people.
Chat GPT can assist with targeted marketing campaigns based on the audience, the voice, the tone and the marketer. Dall-E can generate very detailed custom artwork for the ads. However, it can’t replace the need for creative, human-driven marketing strategies. AI relies on collective knowledge. Real estate teams will still rely on human creativity for new, breakthrough ideas.
The AI valuations built into NARRPR or Redfin’s tech can assist with certain aspects of negotiation, like data analysis. But it can’t replace the need for strong negotiation skills. Skilled negotiators bring real and tangible value to their clients.
AI can analyze data and make recommendations based on past trends. It is not able to adapt and respond to unexpected “Black Swan” events. This was seen recently in the unexpected housing boom in the midst of a pandemic. Humans can respond with creativity and by investing in the frontiers of new knowledge and technologies. Real estate teams will need to continue to be agile and adaptable.
ChatGPT-powered chatbots can handle routine customer inquiries, streamlining customer service. But lacks the ability to replace the importance of emotional intelligence in the real estate industry. Building trust and rapport with clients requires empathy and understanding. Qualities that AI does not possess.
AI can analyze data and provide insights into trends. It will never replace the importance of knowledge in the real estate industry. Real estate agents have deep knowledge of their local market. This provides valuable insights and guidance to clients. AI doesn’t know how to adjust value due to wall-to-wall avocado shag carpet.
Artificial Intelligence won’t be able to offer the same protection as a license does. AI can automate much of the paperwork. But it can’t protect or guide a client in the case of a dispute. The size of the investment of real estate needs a layer or two of liability protection. At the end of the day, AI can’t show up in court and talk to a judge.
AI can assist with certain aspects of networking, such as identifying potential leads. For example, you can ask AI to list the top employers in your area and give you the HR contact information for each one. However, it can’t do the work of the importance of human connections in the real estate industry. Building a strong network of contacts is crucial for success in real estate. Your personal book of business, and how you care for it is a safe haven from AI.
AI chatbots and tools like Google Assistant can schedule viewings. They can’t show up. Real estate professionals will still need to meet with clients in person. Efforts to defer things like showing the property to a tech company have ended in failure. Real people want to visit the home they are going to live in. The breeze, smells and sounds are all things that can’t be captured in a virtual tour.
AI is able to assist with analyzing data and making recommendations. It won’t replace the need for human problem-solving in the real estate industry. Real estate professionals will still need to be able to think creatively. Each transaction has issues. Clients will still need a professional to solve problems and overcome challenges.
AI will impact the real estate industry and improve efficiency in many areas. However, there are certain aspects of the industry that will remain unchanged. The importance of personal relationships will only be amplified. Negotiation skills, adaptability, and problem-solving will continue to be key places of value. The real human element can’t be replaced by AI.
Chris Pollinger, CEO of RE Luxe Leaders, is the profit whisperer to the leadership elite in the business of luxury real estate. He is a senior sales and operational executive skilled in strategic leadership, driving profit, business planning, sales, marketing, acquisitions, operations, recruiting and culture building.