How Real Estate Businesses Are Falling For The AI 'Hype' Trap

AI has undeniably become a buzzword in the real estate industry, reminiscent of the early days of social media when its impact was both promising and yet to be fully understood.

Today, AI offers a broad spectrum of applications, from lead generation and marketing to enhancing operational efficiency and client engagement. However, the real estate industry stands at a crossroads, faced with the challenge of distinguishing between AI's potential and the risk of investing in solutions that fail to deliver on their promises due to FOMO (fear of missing out).

There is a flood of new AI solutions hitting the market, and the number of these solutions is growing by the day, partly because of innovations like OpenAI's Assistants API - which provides developers the ability to create AI assistants trained on your own data. We were pitched four different new solutions just last week, and we have more and more clients calling us each week asking for advice on something they've been pitched on.

And while some existing and emerging AI solutions on the market already offer tangible business benefits, there is no shortage of software applications that don't... yet. And therein lies the problem.

We're a competitive industry, but we're also a busy one. So, I hope I can say this without turning you away from reading the rest of the article... real estate is an industry that is very easily sold to because we're busy.

A client recently shared an email with us they received from an AI software solution which stated, "We have a number of large businesses already using our platform." We suggested they ask the vendor to provide some examples and a contact from one of those agencies so they could get feedback on how it's working for them.

Their response? Crickets.

This narrative serves as a cautionary tale. This episode is not isolated; it reflects a broader issue within the technology landscape where claims of widespread adoption and success are not always substantiated.

Software providers, especially those building AI solutions, have a responsibility to be honest with the industry about the real business impact on offer. This is not just in the best interest of their own reputation but for the reputation of software providers more broadly.

There are a few AI software providers that seem to be selling 'cool toys' rather than tools that will provide true business benefits i.e., efficiency, revenue, profit. Just because something is cool is no reason to dive into yet another subscription for your business.

The real estate industry also has a responsibility to ask lots of questions before subscribing to a new product. Don't fall for the sales pitch. Ask questions.

Building on the foundation laid out, it's evident that the real estate industry is currently navigating through a maze of AI opportunities and pitfalls. This critical juncture requires businesses to carefully evaluate the influx of AI solutions flooding the market, driven by a mix of genuine innovation and the hype surrounding this tech.

The allure of being at the forefront of technological adoption, spurred by the fear of missing out (FOMO), has led many in the industry to consider, and sometimes hastily adopt, AI solutions. The scenario is further complicated by vendors who, capitalising on the industry's competitive and busy nature, pitch their solutions with promises of large, successful deployments. Yet, when pressed for evidence or testimonials, the silence from these vendors is telling. Such instances underscore the necessity for real estate businesses to exercise due diligence before committing to new AI tools, or any software solution for that matter.

In response to these challenges, it is paramount for real estate businesses to adopt a sceptical and inquisitive stance towards new AI solutions. Questions should not just skim the surface but delve into the proven impact of these tools on efficiency, revenue, and profit. The emphasis should be on distinguishing 'cool toys' from tools that offer real, tangible business benefits.

Furthermore, the industry's rush towards adopting AI tools without adequate vetting can lead to investments in technologies that are either premature or ill-suited to their operational realities. This not only results in financial wastage but can also detract from focusing on solutions that genuinely enhance business processes.

In light of this, one practical approach is to demand trial periods or pilot programs from AI vendors. A 30-day free trial or, at least,? the opportunity to speak with existing clients offers a hands-on way to assess the value and applicability of an AI solution to a specific real estate business's needs. Vendors confident in the utility and effectiveness of their solutions should have no reservations about offering such opportunities. Conversely, reluctance or refusal to provide trials or client references should be viewed as a red flag, indicative of potential deficiencies in the product or its applicability to real estate operations.

The real estate industry's engagement with AI solutions is at a critical juncture. The potential for AI to transform operations, client engagement, and market positioning is immense. However, the journey towards integrating AI into real estate practices must be navigated with caution, critical evaluation, and a demand for transparency.

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