Everyone seems to have a different opinion about the future of AI. Bill Gates calls it the “holy grail.” And, while he recommends keeping an eye on its impact, he doesn’t recommend that people panic. On the other hand, Elon Musk thinks using AI is like “summoning the demon.” The only thing everyone seems to agree on is that many industries, including real estate, will feel the impact as AI continues to change how people run their businesses.
The AI industry is growing very rapidly. By 2025, AI revenue worldwide is expected to reach $36.8 billion. In addition, IDC, a market intelligence company, predicts that AI will be used in one or more business applications by 75 percent of developers in 2018.
Simply stated, AI can identify trends or opportunities by sorting through an amazing amount of data. Before AI, real estate agents could only sort through some of that data to manually identify people who were ready to buy or sell, good leads and market trends. AI is making an agent’s life much easier.
Every agent would like to spend their time working only with buyers or sellers who have the highest likelihood of closing a transaction in the shortest amount of time. AI gives agents that opportunity by analyzing a wide variety of data to make those identifications. Agents have a clear path to generate leads and nurture them with the right kind of content.
AI can also gather data related to a prospect’s behaviors and preferences. This works because over half of 2017 homebuyers started their search online, according to NAR. Further, AI can find information on a group of prospects that an individual agent couldn’t.
For example, a prospect probably isn’t motivated if they haven’t been researching on the Internet. And, if a prospect hasn’t been pre-approved for a mortgage loan, they’re not really prepared to start looking at homes. That type of knowledge will help agents target their marketing efforts.
The behavior cues AI gathers from an agent’s website can be used to optimize Facebook ads and targeting strategies. Facebook is an excellent way to connect with prospects and a necessary part of a farming strategy. According to the Pew Research Center, 72 percent of all adults who are active online make at least a monthly visit to Facebook.
As in postcard marketing, the challenge is to reach select people with the appropriate message, and AI can help. For example, if a group of prospects is looking at three-bedroom listings on the agent’s website, the agent can serve those prospects with a personalized Facebook ad promoting those types of listings.
In 2018, AI will transform real estate by automating tedious manual tasks. An agent can set up an AI-enabled system to send emails automatically after a prospect takes a specific action on their website. As a result, the system keeps the workflow moving, and the agent can spend more time building relationships in person.
AI will also streamline workflows by reducing an agent’s paperwork burden. Agents can digitize closing documents and import them into their CRM. The administrative nightmare that contract signing sometimes becomes will no longer be a problem.
AI will bring many benefits to real estate agents. Agents will be able to streamline their operations, eliminate a great deal of paper pushing and ensure that their systems automatically identify the right prospects and nurture them through the sales funnel. Agents can then concentrate on delivering exceptional service, closing transactions and building a viable real estate empire.