Artificial Intelligence: A hot topic for cold calling

If you are working in today’s world, regardless of industry there is one tool that has become impossible to ignore. Artificial intelligence (AI).

If used correctly, AI can save employees 40% of their day on administrative tasks, freeing them to work on more strategic decision making for their teams and businesses. One of the more controversial areas we are seeing brokers start to leverage AI is on cold calling.??

And while, some companies have already started leveraging AI agents to do the cold calling for them. While yes, these agents can make hundreds of calls a lot faster than a real life person, there are many reasons to proceed with caution. Let’s dive into the good and the bad (aka legal).?

The Good

According to Forbes, artificial intelligence can give employees up to 40% of working hours in their day. And cold calling is no exception. Autodialers can call hundreds of people in a day and multitask a lot better than any human can.?

However, while you can broaden your reach, you have to be extremely careful about striking the right balance between saving time and building relationships. If you leave the cold calling to the bots, you might miss important information or worse even tick people off by having them think they’re not worth even a phone call. AI might be better served to dictate notes, create task reminders following calls or even summarizing meetings of key action items, important details about a property or creating creating reminders for yourself for follow-up.

The Legal

While AI offers numerous benefits for cold calling in commercial real estate, it also raises ethical considerations and challenges. Privacy concerns are paramount, as AI systems often rely on vast amounts of personal data. Brokers must ensure they are using AI responsibly, respecting privacy laws, and obtaining necessary consents. Additionally, there is the challenge of maintaining the human touch in interactions.

Let’s take a look at key regulatory considerations and best practices for using AI bot callers:

Telephone Consumer Protection Act (TCPA)

The Telephone Consumer Protection Act (TCPA) is one of the most critical regulations affecting the use of AI bot callers in the United States. The TCPA restricts telemarketing calls, including those made with automated dialing systems and prerecorded messages, to protect consumers from unwanted solicitations. Key provisions include:

• Consent Requirements: Businesses must obtain prior express written consent from consumers before making marketing calls or sending text messages using an AI bot. This consent must be clear and conspicuous, and it cannot be a condition of purchasing goods or services.
• Do Not Call Registry: Businesses must honor the National Do Not Call Registry. Consumers who have registered their numbers must not receive telemarketing calls from AI bot callers.
• Identification: AI bot callers must clearly identify the business on whose behalf the call is made and provide a callback number.

California Consumer Privacy Act (CCPA)

In the United States, the California Consumer Privacy Act (CCPA) provides California residents with specific rights regarding their personal information. Relevant provisions for AI bot callers include:

• Right to Opt-Out: Consumers have the right to opt-out of the sale of their personal information. Businesses must provide a clear and easy way for consumers to exercise this right.
• Notice Requirements: Businesses must inform consumers at or before the point of data collection about the categories of personal information collected and the purposes for which it will be used.
• Access and Deletion Rights: Consumers have the right to request access to their personal information and to request its deletion, subject to certain exceptions.

Federal Trade Commission (FTC) Regulations

The Federal Trade Commission (FTC) enforces rules to protect consumers from deceptive and unfair practices. Businesses using AI bot callers must ensure:

• Truthful Advertising: Any claims made during AI bot calls must be truthful and not misleading. This includes providing accurate information about products, services, and offers.
• Avoiding Harassment: Calls must not be frequent or intrusive to the point of harassment. The FTC can (and will) take action against businesses that engage in aggressive or abusive telemarketing practices.

Best Practices for AI calling

If you choose to go the route of using an AI bot of making your cold calls, it's best to follow these key strategies. To navigate these legal requirements, brokers can adopt best practices for using AI bot callers:

1. Maintain Transparency: Clearly communicate that the person on the other end of the call, that they are not talking to a real person but instead an AI bot, also have the bot express the purpose of the call, the identity of the business, and how personal data will be used.
2. Obtain Clear Consent: Ensure that consumers provide explicit consent for receiving AI bot calls, and keep records of this consent.
3. Provide Opt-Out Options: Make it easy for consumers to opt-out of receiving further calls and respect their choices promptly.
4. Regularly Update Policies: Stay informed about changes in regulations and update internal policies and practices accordingly.
5. Implement Robust Security Measures: Protect personal data with strong security protocols to prevent unauthorized access and breaches.

By adhering to these regulations and best practices, businesses can leverage the benefits of AI bot callers while maintaining compliance and fostering trust with consumers. AI can handle many tasks, the relationship-building aspect of real estate still requires a human touch. Brokers must be extremely careful and strike the right balance between automation and personal interaction to maintain trust and rapport with clients.

Let us know, would you use an AI bot to make your cold calls.