Embracing AI and AR in the Real Estate Industry: A Look at the Future
By Budge Huskey as published to the Herald-Tribune May 26, 2024
The integration of Artificial Intelligence (AI) and Augmented Reality (AR) in real estate is not just a novelty; it’s becoming essential. These technologies are revolutionizing the way real estate professionals interact with properties and clients – from virtual staging to providing real-time analytics that aid in decision-making.
Al and AR are creating a new future for businesses and consumers. Innovations like ChatGPT and virtual reality are changing daily, significantly impacting how we engage with properties and clients. Al, a revolutionary system, optimizes a range of operations, including lead generation and customer service. As reported by Forbes, real estate Al systems can perform tasks traditionally requiring human intelligence, such as analyzing large sets of data, forecasting trends in the market, and automating property management functions with precision.
Furthermore, AR adds a visual dimension to the real estate experience, enhancing how listings are viewed virtually. This technology uses Al and advanced imaging to help prospects visualize a property, even allowing for 3D renderings and architectural plans for new home constructions.
At a recent National Association of Realtors meeting. tech leaders discussed advancements like creating floor plans and virtual tours using smartphones, and how AR might soon enable agents to use smart glasses for creating 360-degree videos, enhancing both buyer and seller experiences. This underscores that a buyer’s first impression of a listing is likely virtual and that customers respond positively to interactive experiences. AR not only helps consumers make better-informed decisions but also adds a layer of interaction and excitement, creating an emotional connection to properties.
A study by Delta Media Group, as mentioned in RIS Media, indicates 75% of leading brokerages in the United States are already using Al technology, with 80% reporting that their agents have adopted Al tools, proving that this innovation is here to stay.
While agents are increasingly using Al in their day-to-day operations, more than half of top brokerage executives are concerned about the liabilities associated with these new systems. Issues such as data and privacy risks, non-compliance, operational errors, and vulnerability to fraudulent activities pose challenges. However, the risk of not integrating Al and AR into our businesses could be even greater.
As real estate professionals, our mission is to bridge the gap between innovation and practical application. By embracing Al and AR, we stay ahead in a competitive market, enhancing our services and continuing to provide exceptional value to consumers worldwide. The road to homeownership is increasingly digital, and for those ready to embrace these changes, the potential is limitless.
In the end, this expansive technology is merely yet another tool with the ultimate effectiveness and value determined by the human using it. Real estate will always be first and foremost a people industry based on relationships and trust, yet these new technologies may allow top agents to engage and represent customers at an even deeper level. Technology will never replace a great real estate professional. Rather, those agents embracing new technologies will replace those who won’t.
Budge Huskey is chief executive officer of Premier Sotheby’s International Realty.