Where AI Could Take the Property Industry in the Next Five to 10 Years
Category Commercial Property News
Artificial Intelligence (AI) is the most innovative progeny of this decade. Integrated Machine Learning, Internet of Things and Big Data means that AI enables users to make faster and more informed decisions with an increased amount of efficiency.
It is expected to generate billions of Rands of revenue for industries who adopt and use it effectively within its business models.
But what exactly is AI and how is it helping industries across the board build and target the right audiences?
With the increase of productivity in a battling global economy, people are looking to use and create solutions that make accomplishing menial tasks simple and easy, with the least amount of expenditure on resources.
AI, in its simplest form, can be referred to as a data mechanism that assists machines or data generating platforms think, analyse, and make decisions similar to those of humans. Many believe that it is most effective when coupled with the intellectual capabilities of humans, and not simply replace the human input.
According to the Data Driven Investor, AI makes use of customised algorithms designed to produce "a high-level processing for a machine to handle a huge amount of data and to make decisions based on logic, enabling the machines to learn and to complete the task without any explicit programming."
How are industries using AI to their benefit?
With the increased accessibility to Big Data and the Internet of Things, many industries have already started to integrate Artificial Intelligence and Machine Learning into their business models:
Transport
Probably one of the more identifiable AI technologies is the self-driving car. Using complex algorithms which analyse and optimise data on sources, routing, mapping, and navigating and applying them to the real world, self-driving cars are set to be the future of the transportation industry.
Finance
A pioneer of AI use is the financial services industry. Along with electronic trading platforms, payment interfaces and trend predictions, AI also provides security solutions integral to the banking sector. Fraud detection systems and risk analysis algorithms help protect the industry and it's customers, while data analytics and technologies such as Chatbots and Conversational Interfaces provide personalized customer experiences.
Healthcare
The medical industry is not simply using AI to elevate new methods in medication. AI is able to collect and analyse patient data that diagnoses and suggests possible treatments with accuracy. It's providing medical companies ways to better understand life sciences and generate a quick diagnosis and prognosis of the ailment in half the time a human would be able to.
Agriculture
The agriculture industry and its farmers are now able to manage and maintain their farms effectively through AI. Optimal sowings times, seed treatments, nutritional care, pest and disease management, water control and perimeter patrolling is all digitised through an app that gags this information out to the farmer without him/her having to manually check. The Sowing App, developed by ICRISAT and Microsoft is an example of this which reported a 30% increase in the crop yield, per hectare when used by farmers.
How can the Real Estate market adapt and use AI to its benefit? What's the potential?
The property industry has been one of the industries that have been slow on the uptake of this mechanism, but this is changing and the future of the property market looks much different than initially anticipated.
Here are five ways in which AI can be used as a business advantage in real estate:
- Property management - through AI messaging platforms, renters are able to log their issues or inquires they may with regard to their buildings at any time of the day, where they are able to track the process from beginning to end. One such example of a platform is AskPorter.
- Counsel / Recommend - the AI component is able to adequately suggest, advise and guide potential customers in their decisions based on data collected from their searches, likes and interests online. This approach will assist both the residential and commercial markets making the property search experience seamless.
- Virtual Agent - through the use of carefully crafted chatbots, people are now able to receive feedback and answers to their questions timelessly. The implementation of this not only takes the pressure of the estate broker to provide feedback, but also ensures efficiency for the customer as well as provides usable data that can be used to optimise future interactions with customers.
- Data analysis - Airbnb is a good example of how AI can assist with data analysis and better understanding their customers' needs. Through the use of machine learning the company is able to re-rank search pages in order to best suit the specific user. This means that landlords can better manage their properties and search facilities can provide more tailored experiences for users.
- Security - this remains a big concern across the board, especially in South Africa and on most times becomes a deciding factor for customers. AI could remove the need for keys and offers facial recognition applications that restrict interaction with the building without your permission. It also gives sole authority to the user removing the need to entrust a guard or doorman and the additional expense.
It is predicted that in 10 to 15 years from now AI will significantly transform the way people buy and sell property. In addition to the above, AI can offer virtual tours for customers allowing them to view the property in their own time, predicting property market value through the use of CRM and marketplace data.
For example, technology may link information from various sources, including area crime, schools, transportation, and marketplace activity, as well as improving the buying process by allowing close and customised interaction. Comparative prices, expected rental income, returns, location analysis can all be managed by AI. People will get more than what they bargained for with its ability to manipulate data using specific algorithms that can help investors find custom investments.
In other words - AI-driven technology will give any industry that embraces its capabilities a competitive edge as compared to those who don't use it. Not only will the business and professional benefit but so will the customer through seamless research and quick feedback.
Ben Hatchwell, Director at Office Place says, "What's important is that we acknowledge where the world is heading, how businesses are changing and what's serving them positively, and we adapt, become agile and open up ourselves to change and evolution. At Office Place, being a new, modern and trendy business appealing to the bigger corporates who already have adopted AI, we realise the need to evolve. Therefore, we are proactive, inquisitive and unrestricted when it comes to providing the best service to our clients through technology, helping us not stay relevant but also stay connected to our clients and the market trends."
AI Today, Tomorrow and 10 years from now
AI continues to revolutionise businesses across the globe and will continue to be of help to real estate businesses to function more efficiently and profitably, apart from being of help to the people looking for properties to buy or rent or sell. AI is not limited to the above and is capable of much more, however any way you look at it, it remains empirical to the growth and sustainability of your business as well as a broker and property agent.
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Author: OfficePlace