Artificial intelligence is becoming an essential part of many investor strategies. The technology found its way to Wall Street early on, establishing automated trading. As AI has evolved, researchers have observed the positive effects it has had on other investor-heavy industries. Here are three positive effects of AI on the real estate industry.
Overcoming Loss Aversion
AI is being used to mitigate human emotions when it comes to financial decision-making. Studies have shown that loss aversion bias, or the fear of loss overriding the pleasure of gain, has resulted in poor investment decision-making. Introducing AI into the decision-making process allows for decisions to be generated without bias. The investor still makes the final call, but has a better understanding of the impact their emotions play in their final decision. This is especially helpful in the real industry where investors may have built-in biases against certain locations or unrealistic expectations about properties that have been in their portfolio for decades.
Nurturing Leads & Optimizing Relationships
AI chatbots are an excellent way to engage clients while collecting relevant information that can generate better leads. For instance, if a potential client is priced-out of a property then they will disengage quickly, freeing up more time for agents to contact high-quality leads and close.
Of course, AI chatbots are not a replacement for agent-client relationships, but they do allow agents to spend time with valuable clients and build those face-to-face relationships that are essential in the industry.
Improving Information Access & Up-to-the-Minute Market Research
Real estate agents spend a great amount of time in their vehicles. AI’s voice-enabled research tools allow agents to research markets while in the field. This is only one portion of AI’s portfolio management tools. Realtors can use the same AI voice-enabled tools to track their client’s paperwork, stay current on available properties and recent closures and make the best use of their, and their clients’ time.
Other positive impacts AI has on the real estate industry include predictive analytics to determine the properties that may soon become available or the clients that are most likely to close. The overall benefit of automated AI technologies is the amount of time they save realtors and the ease with which agents can communicate with clients.