2020 Predictions for AI in Real Estate — Unlocking Hidden Value

An AI-powered world is not a futuristic prediction — it is how our society is currently shaping up to be.

From self-driving cars to manufacturing automation, the impact of AI on industries across the world is expected to increase productivity by 40%.

In real estate, artificial intelligence (AI) will lead to a deeper understanding of the market and open up new opportunities for the industry.

AI’s ability to learn and derive insights from the massive deposit of data in the real estate industry will eventually lead us to more efficient agents and brokers, more satisfied clients, and outsized returns for investors.

However, the adoption and implementation of AI in real estate have been relatively low thus far.

So, how will Artificial Intelligence revolutionize the real estate industry in 2020?

Leveraging Big Data

Traditionally, realtors and firms made decisions based on retrospective data, with a bit of intuition thrown in the mix. However, with the widespread adoption of Big Data, the real estate industry is undergoing significant transformations.

The industry is quickly resolving the disconnect between the availability of data and the difficulty of harnessing it for actionable insights. Companies like Estated, Reonomy, and Cherre are leading the way in making data easily accessible.

2020 will usher in a new era as stakeholders implement AI projects into their workflow. They will make smarter decisions, as data analysis enables them to predict market risk and industry trends with greater accuracy.

Take BuildingIQ, for example. This AI-powered application leverages data analysis to derive energy-based insights and services that allow for optimized energy usage, a higher degree of operational efficiency, and enhanced tenant comfort.

Similarly, CityBldr utilizes a unique combination of AI and data analysis to help property owners sell their property for the highest and best use, ultimately leading to higher returns.

Investment Opportunities

Real estate investment decisions are based on complex data that helps investors understand the market and the condition of the asset.

Traditional valuation models only included limited data sets; however, leveraging Big Data and Artificial Intelligence, investors can have a better understanding of the current market environment and factor in other variables involved in the deal.

For example, factors such as MSA level, neighborhood quality and condition, risk factors, and asset level features play an essential role in deciding on the best investment opportunities.

With a real estate investment platform such as Skyline AI, the potential for the industry to benefit from such solutions is massive. By analyzing data streams that influence on-market and off-market deals, Skyline AI is a shining example of how AI can help investors gain a competitive advantage in real estate investments.

Artificial Intelligence can help investors uncover patterns in data, and predict future rent and disposition prices with greater precision, thereby remaining one step ahead of your competitors.

Many of these companies have been around for a few years, but 2020 will see broad adoption of AI for commercial investment opportunities with trickledown effects to smaller “mom and pop” investors later in the year as the availability of AI-powered tools increases.

Customer Interaction

A house is typically the most significant investment a person makes in their life. It’s only natural that customers require constant interaction to overcome their fears and make an informed decision.

AI-powered chatbots have taken over many industries. Businesses are spending nearly $1.3 trillion in an attempt to cater to the 256 billion customer requests that take place in a year. Moreover, chatbot integration can help businesses save an estimated $390 billion!

With chatbots, realtors can provide around-the-clock support and automate commonly asked questions that don’t require complex human input.

Chatbots can also enable realtors and potential tenants to save precious time by collecting information from prospective renters. Chatbots will allow easy access to data and accelerate the buying process for consumers.

Apartment Ocean, a property management customer service chatbot, uses AI to enhance consumer interaction and lowers customer service costs by 70%!

Another digital real estate assistant, OJO Labs, has developed an AI-driven personal assistant that will help consumers find the perfect house that aligns with their requirements.

By the end of 2020, chatbots will become commonplace on property listing websites. They will answer basic questions asked by consumers, thereby freeing up real estate agents to focus on relationship building.

Unlock The Hidden Value Of Your Real Estate Photos

From real estate investment to helping find relevant answers to consumer queries, Artificial Intelligence is driving massive change in the real estate sector. However, that’s not all — AI is also helping users solve crucial problems in real estate by extracting information from property photos.

2019 was filled with enterprise companies exploring computer vision and its use cases. At Foxy AI, we used this opportunity to build our relationships and educate prospective customers. In Q4 2019 we saw a massive uptick in interest as companies moved from the exploration phase to planning for implementation in early 2020. We believe 2020 will be the year computer vision goes mainstream in real estate.

Foxy AI is building a new category of Visual Property Intelligence tools to reduce costs, save time, and increase revenues. Trained on millions of images using proprietary data augmentation techniques, Foxy’s computer vision models have a precise understanding of visual features and the gradients in quality that exist among them.

By developing leading computer vision algorithms, Foxy AI empowers users with Visual Property Intelligence to incorporate data from their property photos.

Our groundbreaking technology positions Foxy AI right at the intersection of real estate and AI. With multiple proprietary technologies offered to clients and many more in the works, Foxy AI is enabling users to enhance valuation models, streamline workflows, improve quality assurance, and generate new insights using computer vision.

With artificial intelligence paving the way for a more in-depth analysis, the real estate industry will be able to make smarter, faster decisions and find new opportunities for improving the consumer experience and increasing investor returns.

If you want to learn more about how Foxy AI can bring value to your business and outfox your competition in 2020, contact me at Vin@FoxyAI.com.

Foxy AI is the leader in Visual Property Intelligence.