LinkedIn cut annual operational expenses by $100,000 at its headquarters using AI-powered technology by Gridium, a company that focuses on optimizing property resources and saving energy. Smart property utilization is just one application of Artificial Intelligence (AI) in the real estate sector. Data management is the primary application of AI in real estate which transforms into rapid property search, correct forecast of property value, efficient issue of mortgages, superior lead generation, and avoiding budget overruns.
AI is only as good as the data fed into it. Incorrect or unrepresentative data will obviously produce flawed results. The issue gets escalated by the fact that AI can learn from experience and act on its own – this intensifies the risk of unintended negative outcomes. Plus, there is the conservative attitude of the real estate industry to deal with. Notoriously slow to adopt innovations, the real estate industry ranks second from the bottom in the list of most digitized industries in the world as per the Morgan Stanley Digitization Index.
At 30-40%, underutilization of office space is a stark reality. This inflates losses and the energy bill while also dissatisfying employees. LinkedIn cut annual operational expenses by $100,000 at its headquarters using AI-powered technology by Gridium. IBM’s TRIRIGA is AI-enabled for boosting office space utilization.
Customized, luxury properties usually get undervalued by conventional valuation techniques. With the input of precise data, AI can help with accurate valuation of such properties as also with the exact prediction of its value in future.
Next, AI streamlines the property search operations by taking personalization to a whole new level. People looking for a property do not have to sift through web pages of property listings, most of which are irrelevant.
Being intelligent, AI can tell between guys browsing on property sites just out of curiosity and the really serious ones looking to buy one. Real estate agents and promoters will save a fortune in efforts, time, and money by focusing on the right potential customers.
Mortgage lending is a cumbersome process to say the least. The bank has to check n number of documents, verify the information therein, and then make the calibrated lending decision. Neither is the process easy on the borrower who has to compile these documents and wait usually for ages. AI tools quickly read and validate data from documents enabling faster lending to more reliable borrowers.
Construction is marred by budget overruns, which McKinsey places at a whopping 80%! By evaluating the 3D images of construction sites, AI empowers construction managers to provide a calculated response to issues which can save up to 11% on the initial estimates.
Feeding incorrect or unrepresentative data in AI tools will give flawed results. Moreover, because AI can act on the basis of its analysis, such data amplifies the hazard of unintended negative outcomes.
Then again, real estate is among the most conservative of industries. Notoriously slow to adopt innovations, the real estate industry ranks second from the bottom in the list of most digitized industries in the world as per the Morgan Stanley Digitization Index.
Attitudes are changing in the real estate sector as more and more promoters and agents open their eyes to the fantastic capabilities of AI and benefit from it.
When you know the “why,” the “how” is easy. Real estate players know why they need to adapt AI and we know when to bring you the latest updates!