Key Takeaways
AI adoption in real estate is accelerating, with most firms already using, piloting, or planning AI, making it a critical competitive advantage.
AI goes far beyond tools like ChatGPT, offering powerful solutions for document analysis, property valuation, and portfolio due diligence.
Technologies such as IDP, RAG, and computer vision enable smarter document reviews, more accurate valuations, and better property verification.
While AI delivers major efficiency gains, implementation costs and over reliance risks mean strategic use and expert guidance are essential.
Artificial intelligence is here to stay! And as an active or budding real estate investor, it’s in your best interest to learn how it can help you make informed investment decisions.
According to a recent survey of top financial analysts, about 14% of real estate firms are actively using artificial intelligence technologies. The same poll also quotes another 28% as having adopted AI in the early stages, and another 30% as conducting pilot programs.
With these numbers, it’s evident that the real estate industry is at a crucial transition point.
But in practical terms, what do these numbers actually mean?
For most firms, using AI typically involves utilizing ChatGPT to generate social media posts. But, while such basic applications are becoming commonplace, few in the real estate industry know how to effectively leverage AI.
The truth of the matter is that AI can provide both ground-level- and enterprise-wide solutions.
In this blog by SGI Property Management Dallas, you’ll learn how you can use AI in real estate including its key use cases, solutions, and challenges.
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Use of AI in Real Estate
The use cases of AI in real estate are diverse, cutting across the entire industry. The primary technologies that are driving the transformation include the following:
Intelligence Document Processing (IDP). This technology combines traditional OCR software with machine learning to understand a document’s structure and context.
Retrieval Augmented Generation (RAG). This technology can enable you to access and analyze vast document repositories while ensuring top-notch accuracy.
Generative AI (GAI). With GAI or GenAI, real estate professionals can collate information, while drawing data from proper sources.
Today, modern AI solutions make use of such top-notch functionalities in combination with proprietary AI models. The result is the application of artificial intelligence in a vast, diverse range of applications.
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Document Reviews
One of the applications is in document reviews. As a landlord, documentation impacts almost every facet of your operations. From leases, applications, maintenance logs, financial statements, and even communications.
But the issue with traditional document management systems is treating paperwork individually. With modern AI solutions, you may be able to build a semantic network of relationships between various documents.
For example, a change in a term of the lease can trigger an analysis of other areas as well, such as operational costs, compliance requirements, and service agreements.
Property Valuation
In commercial real estate, you can make use of AI to deal with complex portfolios. This is especially true where due diligence is essential for accurate valuation.
Traditional methods usually miss critical details that may lie hidden in huge repositories of documents. Did you know that it could take someone almost five years to go through a typical property’s documentation before any analysis begins? This is just one example..
AI & Computer Vision
Another use case of AI is in the accurate verification of property listings to reflect reality. If a listing, for example, claims that a rental unit has a shower but the photos of the bathroom only show a bathtub, AI can easily spot the inconsistency.
This is unlike generative AI, which relies on creating and enhancing images. With computer vision, you can use AI on complicated tasks that require object tracking and semantic segmentation.
Real estate players can apply this capability in multiple areas. Property managers can use this to check inventory after a resident has moved out. Residents can use it to visualize potential living spaces. Support developers can also use it to track progress on construction sites.
AI Technologies in Real Estate
Today, some AI technologies have been created to address specific industry challenges. Each technology provides distinct capabilities and is priced accordingly to suit different market segments.
Some of the top AI technologies include the following:
V7 Go. This AI technology does more than basic document processing. It helps tackle complex workflows using a combination of advanced technologies like multi-modal processing and chain-of-thought reasoning.
HouseCanary. This AI engine is designed to process vast amounts of real estate to provide accurate and detailed market forecasts and valuations. The platform covers over 136 million single-family properties across the country.
Zillow AI. Originally, this technology began as Zestimate. However, it has evolved to become something more sophisticated. It can analyze anything from user submissions, to market activity, to property valuations.
Surface AI. This was specifically designed for the multifamily housing sector. It integrates existing systems to streamline processes and highlight risks to boost efficiency and resident satisfaction.
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Conclusion
Real estate investors can apply AI in a wide array of areas for optimal outcomes. But you should expect some challenges. The initial cost of implementing AI solutions, for example, can be quite substantial. Also, over-reliance on AI technologies can diminish critical thinking and decision-making skills.
Consider professional help for proven results. SGI Property Management Dallas can save you a lot of time, effort, experience, and knowledge. We’re a top property management company in Dallas, TX, and can provide you with all the help you need to be successful. Get in touch to learn more!
