Revolutionizing Real Estate: How AI is Transforming the Industry
The real estate sector has traditionally been slow to adopt new technologies, but artificial intelligence (AI) is changing the game. AI is transforming the way buyers and sellers interact with agents, altering the competitive landscape of the industry. By automating tasks such as property listings and neighborhood analyses, AI is freeing up agents to focus on building deeper relationships with their clients.
Ryan Serhant, CEO of Serhant and star of “Owning Manhattan,” believes that AI is making real estate less about access to information and more about personalized attention. As agents leverage AI, they will need to find new ways to differentiate themselves in a competitive market. “It’s the game of attention,” Serhant said at the CNBC Evolve AI Opportunity Summit.
Buying a home is often the largest investment people make, making personalized attention crucial to success. AI can help agents provide this attention by automating daily tasks, such as customer relationship management, which can consume over 60% of their time. Serhant’s company has developed a service called “Simple” to handle these tasks, allowing agents to focus on high-touch interactions with clients.
While AI tools can streamline lead generation, automate marketing campaigns, and provide predictive analytics, they won’t replace the critical role of agents in providing top performance. In fact, AI can strengthen relationships by making access to real-time market data and sales insights less onerous. This can level the playing field for smaller boutique firms, allowing them to compete with larger corporations.
The adoption of AI in real estate is still in its early stages, and understanding remains low among professionals. However, interest is growing, with generative AI ranked among the top three technologies expected to have the greatest impact on real estate over the next three years.
While AI brings opportunities, it also poses risks, such as wire fraud. The FBI reported a significant increase in wire fraud cybercrime losses in 2023, driven in part by real estate transactions. Improved AI technology is facilitating these scams, but Serhant believes the industry will adapt to these risks as it has in the past.
As AI continues to transform the real estate industry, agents who understand how to leverage it will have a significant advantage. With AI, the focus will shift from access to information to personalized attention, and agents who can provide this attention will thrive.
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