By Kevin Hawkins with Korey Hawkins | Vol. 2 Post 44
REAL AI is a human-created weekly roundup of all things related to artificial intelligence in real estate and emerging AI innovations in other sectors likely to impact our industry. We post a new edition every Friday, and our free newsletter is delivered every Monday.
AI in real estate: Will CRE lead the way?
One real estate tech truism that has endured since I’ve been in the business is that the most advanced technology gets adopted in the Commercial Real Estate industry well before residential real estate. Often, the determining factor is the cost of the investment, but also true is that the newest tech can have a greater impact in CRE.
Sensors, IoT and IoE, digital twins all made more money in commercial real estate, despite being heavily marketed to residential. A tangential example of how CRE seizes an opportunity is the recent acquisition of LiveEasy (formerly MoveEasy). AppFolio, a property management software firm catering to both CRE and residential sectors, saw how LiveEasy fit into helping the 8.3 million rental units on their platform as justification for the $80 million purchase price.
Commercial real estate firm JLL (Jones Lang LaSalle) does a superior job of framing the AI conversation online under the heading, “Artificial Intelligence: Real Estate Revolution or Evolution.”
JLL’s dive into the CRE AI space is chalked full of interesting observations, including:
- AI is seen as a game changer by real estate professionals, but an understanding of its capabilities is still low.
- There are now technological solutions for almost every aspect of real estate functions, including investment management, design and construction, building and facility operations, and portfolio management. A solid foundation has been laid for AI integration.
- Anxiety around such change is not new. In 1589, Queen Elizabeth of England refused to grant the inventor of the mechanical knitting machine a patent out of fear that it would put knitters out of work.
- 85% of employment growth in the U.S. over the last 80 years is explained by the technology-driven creation of new positions.
- The birth of the ‘real intelligent building’ is imminent. AI-compliant infrastructure will become a default, just as internet connections are a default feature of current buildings. AI will also help deliver net-zero buildings with high sustainability performance.
- AI companies and investments have been observed to cluster around established tech markets. Going forward, growth is likely to be concentrated in locations where AI talent is available, namely tech hubs, innovation centers, and universities.
- 42% of AI companies are concentrated in the San Francisco Bay Area, followed by Boston, Seattle, and New York.
- Only 37% of AI companies are based in the US.
JLL’s bottom line: “It is crucial for real estate investors, developers, and corporate occupiers to stay informed and strategic, considering how to leverage the power of AI to support your business objectives and how to do it in a responsible and ethical way.”
We believe the same is true for real estate agents, so share our free REAL AI subscription link with a friend or two – here. (-Kevin)
AI at Associations and MLSs
If you have not read “AI Within Reach,” a feature I wrote for the newest issue of NAR’s AExperience Magazine for Association/MLS Executives, powered by Realtor Magazine, please excuse the shameless plug – and plea to read.
Why is it important? Because no other business sector in the real estate ecosystem has done more to singularly advance AI in real estate than MLSs. Just ask Lundy, Restb.ai, or CubiCasa, who are bringing their Safe AI solutions via MLSs to tens of thousands of agents nationwide.
Perhaps what was most interesting about writing this feature was the number of top MLS execs who declined to comment. My take was that they all were in the middle of commission chaos, or they were working on a number of AI-related efforts, but they either were not ready-for-soup, or they didn’t want their “competitors” finding out! MLS competitors today? That’s just about any large MLS in the country, as we now live in an MLS world increasingly without borders.
Yet a handful of Association and MLS leaders welcomed the opportunity to share their AI efforts, enthusiasm, and caution. Former RESO CEO, Jeremy Crawford, who now runs FMLS in Georgia, has become somewhat of a poster boy for MLS AI. He and FMLS are leaning into AI heavily with an array of solutions, many of which data champ CoreLogic is providing, including AI Image Search.
Alex Lange, head of strategy and innovation at NAR, is never shy to talk about AI: the good, the bad and the ugly. But often, like us, Lange comes down on the positive sides of AI, noting that while AI can be used for nefarious activities, he points out in this feature that AI can also be used to protect associations – to identify bad actors who are trying to use AI to cause harm.
Overall, the feature is a comprehensive look at where MLSs and Associations are today with AI. In real estate, we are a lot farther ahead than most industries and no longer the tech lagger. In 2025, you can expect even more AI from MLSs and Associations, and overall, that’s a very good thing. (-Kevin)
AI Facts
- 60% of workers stated their organization is effectively balancing integrating Generative AI rapidly while implementing processes that mitigate potential risks – Deloitte
- 13% of organizations surveyed reported adopting generative AI into their software engineering function – McKinsey
- 70% of customer experience leaders believe that AI chatbots are becoming skilled architects of highly personalized customer journeys – Zendesk
- 93% of retail organizations said that generative AI is a topic of discussion in their boardrooms – Capgemini Research Institute
- 65% of Americans believe that AI matches or surpasses human ability in suggesting products or services – Gallup
Source: DigitalOcean (-Korey)
AI Headlines
How To Create And Customize An AI Podcast With Google’s NotebookLM | 10/24/24 Forbes
Create a professional podcast from your blog with one click.
ChatGPT Search is now live. Here’s how to use it. | 10/31/24 Mashable
ChatGPT subscribers have a real-time alternative to Google search.
The iPhone’s AI Features Launched Today. They’re (Mostly) Unremarkable. | 10/28/24 The New York Times
Apple’s AI-transformed future has a ways to go.
CubiCasa launches AI tool that creates virtual home tours in minutes | 10/31/24 HousingWire
Generate your own tour with data and photos.
ClearValue teams with Restb.ai to bring computer vision to appraisal process | 10/31/24 HousingWire
Restb.ai is integrating its advanced AI into ClearValue’s valuation platform. (-Korey)
AI Quote of the Week
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