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Concerns with the adoption of AI in real estate

Concerns with the adoption of AI in real estate

The widespread integration of AI in shaping real estate decisions has become nearly ubiquitous among leading real estate brokerages. According to the 2024 Delta Media Real Estate Leadership Survey, 75% of these brokerages are already utilising AI technology, and almost 80% report that their agents have embraced AI tools. Despite this widespread adoption, concerns persist about the adequacy of safeguards to keep up with the rapid integration of AI.

The Delta study further reveals that real estate agents are incorporating AI into their daily tasks, such as crafting property descriptions (82%), developing website content (44%), and even writing personal bios (43%). Importantly, the reliance on AI is not only present but also expanding, with executives currently rating its importance to the industry at 5 out of 10, a figure expected to surge by 40% in the near future.

Some industry experts predict that AI personal assistants will experience a significant rise in prominence in 2024. However, a mere 23% of leaders in the brokerage sector anticipate the utilisation of AI for front-office or administrative support within the current year. Surprisingly, 11% have indicated a complete lack of intention to integrate AI into their operations during this period.

Despite the early and widespread adoption of AI in the real estate industry, the survey has unveiled a persistent hesitancy toward AI. Over 50% of executives in real estate brokerages express being “concerned or deeply concerned” about the perceived lack of adequate safeguards surrounding AI. These safeguards are seen as essential for mitigating exposure to associated risks and liabilities.

AI has swiftly become one of the real estate sector’s most rapidly embraced technological tools, with brokerages and agents incorporating it at a rapid pace. However, the survey highlights genuine concerns about mitigating AI risks through the implementation of proper controls. As the reliance on AI continues to grow, brokerages seek assurance that their technology partners, providing these tools, have sufficient safeguards in place to protect them from potential downsides. Managing risks remains crucial even as competitive pressures make AI adoption a standard practice.

The information in this post is valid to the best of our knowledge on the date of posting. It is advised that you seek independent advice based on your individual circumstances.

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