Like every other technological breakthrough, GenAI has roused interest and curiosity among all sectors of the industry, and real estate is not untouched by its compelling promises of intelligent systems and processes. But before the real estate industry finally adopts GenAI to its fullest, it will be accompanied by a steep learning curve across people, systems and processes across all verticals of the property markets. While analytical AI (GenAI’s predecessor) has already firmly established itself as the foundational model that powers market predictions, valuations and responsive chatbots today, GenAI marks a more radical shift in AI technology.
SUMMARY
– GenAI is different from its predecessor, analytical AI in terms of its capabilities and functions.
– GenAI tools have the potential to transform the real estate industry and generate $180+ billion in value.
– GenAI can be used at every stage of real estate business from customer acquisition to retention.
– GenAI is currently used for market forecasts, property valuations, creating marketing materials, architecture and design, customer relationship management, maintenance of property etc.
– There are various important factors to consider before deploying GenAI, such as customization of third-party tools, adaptability of business organization, data quality and security etc.
Analytical AI is trained on a specific data set to perform certain tasks based on that data. GenAI on the other hand, not only learns to make decisions or predictions based on the given set of data but generates new data based on the inputs. This adds a new dimension to the scalability of AI solutions in hitherto unexplored dimensions in business analytics and implementation across diverse sectors. For example, if the capabilities of analytical AI have been leveraged to outperform existing real estate roles and responsibilities like market analysis, valuations, customer relationship management, and property management etc., GenAI may even suggest entirely new ways in which real estate has been imagined or managed. Analytical AI’s sphere of influence is limited to a particular data set, input rules and pre-defined functionalities but GenAI’s creativity is limitless. Businesses the world over are deploying GenAI to solve complex problems that have eluded decision-makers so far. However, it is important to remember that analytical AI and GenAI are not opposites but complement each other’s capacities to make business processes simpler, smoother and more efficient.
Technology upgrading is inevitable for the success of any business, but GenAI is about envisioning a new future for real estate. Its demonstrable effectiveness in every stage of the real estate business makes it the ‘must-have’ technology for every market leader. GenAI can open new dimensions in the field of analysis of market and consumer data. For instance, decisions made by property buyers are based on a large set of factors that are too complex to be organized in a single spreadsheet. GenAI is capable of utilizing different forms of data including images to generate insights that can help real estate marketers understand consumer preferences better.
Perhaps, the time for GenAI-powered analytics is just about right when the real estate industry has rich data about markets, properties and urban demography. GenAI, trained on these Big Data including population density, land use patterns and transport infrastructure networks can fundamentally transform the urban planning processes. Training GenAI using real-estate-specific data at its early stages of development can ensure the robustness of the technology. Early adoption of GenAI models in ERP and CRM of real estate will allow a holistic integration of human resources and technology.
GenAI can re-invent the domain of architectural design and construction. Its inherent capacity to create or generate a host of design solutions based on demographic information can be used to develop cost-effective, space-efficient and sustainable plans tailored to specific personal preferences.
Real estate sales and marketing teams are increasingly deploying GenAI tools to maximize customer outreach. When it comes to predictive analysis and valuation of the markets and properties, GenAI can always be one step ahead. From identifying new customer segments to optimizing marketing efforts and streamlining customer interactions, sales and marketing teams have a lot to gain from GenAI. GenAI-generated property listings with attractive descriptions, marketing collateral, realistic 3-D images, virtual tours and virtual staging of vacant properties are already a rage in the customer-facing verticals of the real estate industry. GenAI-powered chatbots can open up new upselling opportunities while facilitating customer journeys. It can ease operations by automatically producing contracts and legal documents and help in their verification.
Incorporating GenAI from inception can help properties achieve unparalleled performance. Smart utilities like lighting, heating, water and security that use GenAI can analyse use data leading to efficiency and resource-saving. GenAI-enabled virtual assistants can be used to process maintenance requests, schedule repairs and delegate tasks efficiently. A property that incorporates GenAI principles will be capable of self-inspection and round-the-clock monitoring which will lead to safer and more pleasant living experiences.
Decision-makers considering GenAI adoption in their real estate businesses are no longer mystified by this fascinating technology. Instead, the discussion is now focused on the practical factors underlying the usage of GenAI. One of the key considerations while relying on external providers is to ensure that the GenAI tools are precisely customized to meet your business goals. Businesses choosing to adopt cutting-edge technology like GenAI will require adapting to the evolving environment. Factors relating to data quality and security will have to be considered before choosing between open-source and private GenAI models. Experts believe that GenAI will prove to be a decisive force in the future of real estate markets. GenAI can be leveraged to forecast accurately even in volatile markets with shifting demographics and changes in regulatory frameworks with small algorithmic tweaks. According to experts at the McKinsey Global Institute (MGI), GenAI can generate more than $180 billion in value for the real estate industry. While the advantages of GenAI in real estate are incontestable, it is important to remember that the right GenAI for your business is the one that is strategically aligned with your objectives.
If you are a proptech company and want to promote your products for Free, go to proptechbuzz.com and submit your products. For investors or proptech buyers, sign up on our platform to stay informed about exciting updates and trends in the Proptech Ecosystem.
Explore more Proptech news at media.proptechbuzz.com, for news tips and promotions, reach out to marketing@proptechbuzz.com
By Proptechbuzz
By Ravi Kumar
