HOW ARTIFICIAL INTELLIGENCE CAN ACCELERATE THE GROWTH

Artificial intelligence (AI) is easily one of the most anticipated upcoming technologies. Understanding the impact that a piece of technology will have on your business will not only allow you to prepare for any adverse impacts, but it will also allow you to adapt your business to assimilate the technology to optimize your business.

Despite being one of the older industries, the real estate sector is one that has been gradually adapting to emerging technologies. While it may seem like artificial intelligence is still a long way from being implemented into the industry, it has been used in the real estate industry since 2018.

The First AI-Assisted Real Estate Transaction

The first AI transaction took place in Philadelphia, where two buildings were purchased for a sum of $26 million based on a “soon to market” algorithm. This algorithm was used to analyze large sums of data that included potential economic value, KPIs, property characteristics, and risk factors. The algorithm referenced all these factors as a basis for determining whether a property had profit potential.

The algorithm was used to make another purchase in 2020 with promising results.

Anything that can more or less guarantee high-profit margins is something that decision-makers are going to adopt into their business. Even when that alone is a compelling reason to integrate AI into your real estate business there are many other benefits that make AI a great addition to your toolkit.

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