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Revolutionizing Real Estate: An AI-Powered Vision for a New Era

Standard Stories

Monday, Oct 2, 2023 / Technology / By Standard Labs

Revolutionizing Real Estate: An AI-Powered Vision for a New Era

David Thompson, Tech Times

Artificial intelligence has already shown the potential to revolutionize several industries, largely thanks to its superior data processing capabilities and ability to automate monotonous and time-consuming tasks. The result is a workflow that is significantly streamlined, allowing employees to focus more on the more intricate duties of their jobs.

Although some critics have feared the AI revolution "replacing" human workers, the truth is that most industries, including real estate, still require the human touch - or even simply human oversight - to work.

With reference to sales professions and the real estate industry, specifically, there is a perception that these jobs are fundamentally "human" and could not be affected or assisted by the proliferation of AI. While real estate is a business of relationships, there are certain tasks that can be automated using artificial intelligence, allowing realtors to focus on the relationship aspect of their jobs to more effectively close deals.

How Standard is revolutionizing the real estate industry with AI

Pioneering AI company Standard's new AI platform for commercial real estate (CRE) professionals was created with the vision of optimizing the connection between CRE brokers, prospective off-market listings, and qualified buyers/tenants. In other words, it targets the real estate agent's most valuable (and time-intensive) tasks: finding qualified buyers and sellers.

By using a number of factors and extracting public and private data, Standard can segment potential sellers and buyers in the market, and deliver tailored insights, giving agents who use the tool a significant competitive advantage over their rivals. Aaron Rafferty, the company's CEO, reminds readers that brokers already have access to this data - they just don't use it.

"Most brokers subscribe to a handful of tools to provide property, lease, buying, and selling information, but are not capturing all the value the data presents," Rafferty says. "Using AI, we can identify trends and patterns invisible to the human mind, providing a deeper understanding of how to obtain their next client or transaction."

Indeed, Rafferty envisions the future of this tool as helping agents, who may not realize how data-intensive the real estate industry is, provide the "perfect match" to their current and future clients based on a set of provided criteria. First of all, there are hundreds or thousands of listings in any given area. While many might not even be close to a fit for a client, the sea of options could cause some good fits to get lost in the shuffle. AI can sort through these listings with unprecedented speed, identifying ones with the qualifications the client is looking for - even from sources that wouldn't be on the agent's radar.

Beyond surfacing fresh opportunities, Standard's model streamlines tedious tasks like drafting emails, scheduling meetings, and preparing proposals. As a result, their efficiency will be improved, and they can improve the client experience by focusing more on the strategic tasks that legitimately require human input. In other words, real estate agents are able to make better decisions faster.

Standard's platform even has the potential to provide predictive insights to CRE professionals, so they can make more informed decisions about the needs and desires of their clients. For example, using data such as intent, personal and legal events, company announcements, and more, Standard has the ability to advise investors on both ideal on- and off-market properties, as well as provide curated research for clients to identify future trends (e.g., zoning changes, new construction, population shifts, etc). This level of personalization and market foresight is only possible with AI.

For tenant brokers, this means receiving alerts when a company announces expansion plans, along with draft proposals for ideal spaces. Property developers get notifications of new zoning approvals, with project timelines and outreach tasks to initiate deals.

The CRE industry is rapidly embracing new technology, and Standard envisions leading the way with AI that transforms data into a clear strategic direction. As Rafferty states, "Our platform puts unmatched, hyper-local insights at your fingertips. The future of CRE is individualized and data-driven."

"Generative AI is already being used to prequalify prospective buyers for mortgage offerings," explains Sean Shahkarami, Founder and CEO of Opilio, an innovative machine learning and AI solutions provider. "The technology is helping companies like Zillow match buyers to sellers and streamline information in their search functionality. I predict the use case will continue to evolve to the point where realtors will use AI bots or 'personas' of themselves to cover the mundane work and tasks, prequalify potential clients, and essentially become an AI real estate agent."

How AI in real estate could have a profound impact on the market
Rafferty even sees AI developments like his own as a potential solution to avoid a potential market crash.

"A number of capabilities that AI has have the potential to prevent a crash, including enhanced verification systems, data enrichment, forecasting, enhanced decision making, and better credit/financial checks for buyers," he explains. "It's important to understand that AI gives people the ability to evaluate and synthesize huge datasets once not within reach to provide previously impossible insights - almost like seeing the future."

Of course, crises like housing crashes are also influenced by broader factors in the economy. However, Rafferty says AI might be a solution to these factors too.

"There are broader factors associated with a recession, which include inflation, job loss, and an underperforming job market/economy," he adds. "AI has the potential to reverse an economic recession due to its ability to provide unforeseen levels of production for organizations and productivity for individuals - both of which could actually reverse some of the major recession indicators and turn us on the right track."

With CRE professionals facing increasingly complex information overload in a fast-paced market, Standard believes AI is their competitive edge. By distilling vast datasets into concrete next steps, CRE-specific models will enhance human capabilities, rather than replace them. The result is commercial real estate powered by predictive, personalized insights once considered unattainable.

However, Shahkarami reminds realtors that AI was designed to be used as a tool, not a replacement - and it should stay that way. "Anything suggested by AI is just that: a 'suggestion,'" he asserts. "Everything should be carefully read and reviewed with your own eyes. This is the double-edged sword of convenience. Often, we will trust the AI model, but if there is a mistake or we overlook an important detail, it could have negative consequences."

This collaboration between humans and machines reflects the ideal future for Standard - one where AI propels the industry into an era of unprecedented growth through efficiencies and deep, data-backed insights. As a result, more opportunities will be identified, brokers will create more value for their clients, and their clients will be more satisfied - a win-win for all parties involved in a transaction.

First published on TECHTIMES.com