From Elon Musk to real estate experts, artificial intelligence (AI) is the perceived backbone for the future of our economy and way of life.
We’ve seen the great things AI has brought, including significant healthcare achievements. But we’ve also heard the Luddite responses that predict a possible turn for the worst: Terminator-type destruction, shrinking job markets, and human inferiority.
Putting the theatrics aside and taking a close look at the AI and its development, there are some fantastic improvements it offers to a variety of industries, including real estate. But there is genuine concern about whether AI will eventually replace professionals in their respective positions.
The latest development in the real estate world is the use of AI to write listing descriptions – a job typically left to the real estate agent … now taken over by a new employee.
Can AI technology write better descriptions than humans?
Listing AI, a Canadian startup, uses advanced artificial intelligence to generate full-fledged listing descriptions with just a few minor user input.
If you’ve ever bought or invested in a home, you may have noticed how downright awful some ad descriptions are. They do not capture the essence of the home or market it in any fashion.
Mentioning AI co-founders Mustafa Al-Hayali and Corey Pollock started the company for that reason.
Listing AI improves the property description process by asking for the home’s primary data, such as square footage and architectural details. It then pushes all that information into an AI model called GPT-3 developed by OpenAI and generates a description.
At the end of the day, the broker still has to take an active role in the process. The technology itself cannot find information. But according to Al-Hayali, that was always the intention.
“I don’t believe it’s meant to replace a person when it comes to completing a task, but it should make their job a lot easier,” Al-Hayali told CNN in a recent interview. “It can generate ideas for you to use.”
Listing AI is not intended to remove the agent from the description. Instead, it does 90% of the work so they can move to better things.
In that case it gets passing numbers. Even though the software isn’t quite finished (there are still a few kinks in the language output), it does what it’s supposed to do relatively well.
It’s affordable too. From now on there is a free trial with several generations of entries. If you like it, you can buy a monthly plan for $ 9 a month or $ 84 a year. These prices may change in the future.
How does AI affect real estate?
As mentioned earlier, AI is a great augmenter, which means it’s good at improving workflows and doing the “crazy” tasks that slow us down. But when does AI become negative?
It is difficult to determine. In the real estate field, we’ve already seen companies invest huge sums of money to improve their AI and digital technologies. Wells Fargo, for example, has spent $ 500 million improving its digital mortgage process.
SoFi has made it possible for the entire mortgage development process to be fully automated. Home buyers no longer need to answer the phone to talk to a credit officer. They can receive funding autonomously.
In addition, SoFi no longer provides loans with FICO. Instead, internal algorithms and AI technology have paved the way for instant qualifications to determine whether someone is considered a “safe investment” or not.
Sounds great, but what do we lose when we give away so much of the human aspect in exchange for productivity and higher profit margins? First, social interaction. And two – trust.
Human connections have built the most successful companies. In an industry as personal and high on the stakes as real estate, you would think that reliance on technology, namely AI technology, would be counterintuitive.
Buyers want reassurance about what they are buying. Sellers want to know that they are getting the most value from their home. An agent who says to a salesperson, “Don’t worry, my robot will cover the sale,” can’t ease their nerves.
There is also evidence for this. Statistics suggest that the Millennial cohort, a generation that grew up on computers, relies on brokers at a faster rate than the industry average.
Why? They need help understanding the buying process, negotiating and making sure they are getting a good deal. That kind of value is irreplaceable. AI will never match the power of human connection and understanding. But it can certainly make our job easier and more manageable.
That’s why we should welcome responsible technologies like Listing AI, where agents have input to work its magic.
Unwanted terrain can be scary
The images of AI are contradictory. On the one hand, we have the Terminator and Will Smith fighting dozens of intelligent robots that have taken over society. On the other hand, we have the real world, where AI is actively being developed to make our lives easier and more sustainable.
There are legitimate doubts about the advancement of AI and underground projects that can cause mass hysteria and real economic dysfunctions.
But for now, we should enjoy the fact that we can write better list descriptions without actually writing them.
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