AI is revolutionizing numerous sectors, including real estate. Ryan Serhant, CEO of Serhant and star of the reality program “Owning Manhattan,” believes artificial intelligence can help real estate brokers become more productive by allowing them to focus on creating long-term connections rather than just completing transactions. Serhant spoke at the CNBC Evolve AI Opportunity Summit in New York, explaining how AI will alter the business.
Historically, real estate has been sluggish to adopt technological advancements. However, as AI gains traction, jobs such as preparing property listings, assessing areas, and generating leads are becoming increasingly automated. This automation enables real estate agents to move their emphasis away from boring chores and towards offering a more customized experience for their clients.
According to Serhant, as AI enables agents to become more efficient, competitiveness will no longer be based on access to knowledge or experience. “If we all use AI and have the same degree of knowledge, who will win? “It’s the game of attention,” he explained. In other words, real estate brokers that provide more personalized service will stand out in the market.
Serhant believes that one of the most significant benefits of AI is that it frees up time for agents to engage with their clients in more meaningful ways. Purchasing a house is frequently the greatest investment people make in their lives, and the personal touch of an agent may make a significant difference in the homebuying process. “The product in sales is no longer just the skill set,” Serhant pointed out. “It is the attention to the skill set.”
Serhant’s own firm has embraced artificial intelligence by creating “Simple,” a tool that automates daily customer relationship management activities. These duties, which traditionally consume more than 60% of an agent’s time, are now performed by AI, freeing agents to focus more on client interactions.
AI is also utilized to expedite marketing efforts and deliver predictive insights to agents, allowing them to identify new possibilities. Serhant, on the other hand, believes that artificial intelligence will not replace the human side of real estate. He believes AI may improve interactions between agents and clients, making those who use it more competitive.
Serhant also mentioned that artificial intelligence (AI) might level the playing field between smaller real estate enterprises and major corporations. Smaller businesses may compete more successfully with industry giants by increasing access to real-time market data. “There is a trust factor in sales,” Serhant explained. “It isn’t about who is the largest, but who is the most empowered.”
AI also assists both homebuyers and sellers. Agents will be able to deliver more tailored services that focus on the client’s demands. However, while AI is transforming real estate, the sector is still in its early phases of adoption, and many professionals lack a thorough knowledge of the technology. According to JLL Technologies’ 2023 Global Real Estate Technology Survey, generative AI is likely to have a substantial influence on real estate in the future years, although much work remains to be done in terms of agent education.
Serhant predicts a bright future for agents that accept AI. He expects that those that understand how to employ artificial intelligence will have several possibilities to increase their market share over the next two decades. He did, however, caution about the hazards, particularly those associated with wire fraud. Cybercrime, particularly wire fraud in real estate transactions, is becoming a major threat. As AI advances, so do scammers’ strategies, but Serhant believes the business will adapt to these obstacles, just as it did to previous technological developments.
This article is based on Alexandra Ferreyros’s CNBC article, which was published on October 6, 2024. You can check out the full article here.
Hi, I'm Voss Xolani, and I'm passionate about all things AI. With many years of experience in the tech industry, I specialize in explaining the functionality and benefits of AI-powered software for both businesses and individual users. My content explores the latest AI tools, offering practical insights on how they can streamline workflows, boost productivity, and drive innovation. I also review new software solutions to help readers understand their features and applications. Beyond that, I stay up-to-date with AI trends and experiment with emerging technologies to provide the most relevant information.