Real Estate Insights: Is the AI revolution a real estate boon or bane?
Journal of Property Investment & Finance
ISSN: 1463-578X
Article publication date: 5 July 2023
Issue publication date: 16 April 2024
Abstract
Purpose
The paper aims to provide a comprehensive analysis of artificial intelligence’s (AI) transformative impact on the real estate industry. By examining various AI applications, from property recommendations to compliance automation, this study highlights potential benefits such as increased accuracy and efficiency. At the same time, this study critically discusses potential drawbacks, like privacy concerns and job displacement. The paper's goal is to offer valuable insights to industry professionals and policy makers, aiding strategic decision-making as AI continues to reshape the landscape of the real estate sector.
Design/methodology/approach
This paper employs an extensive literature review, combined with a qualitative analysis of case studies. Various AI applications in the real estate industry are examined, including machine learning for property recommendations and valuation, VR/AR property tours, AI automation for contract and regulatory compliance, and chatbots for customer service. The study also delves into the optimisation potential of AI in building management, lead generation, and risk assessment, whilst critically discussing potential challenges such as data privacy, algorithmic bias, and job displacement. The outcomes aim to inform strategic decisions for industry professionals and policy makers.
Findings
The study finds that AI has significant potential to revolutionise the real estate industry through enhanced accuracy in property valuation, efficient automation and immersive AR/VR experiences. AI-driven chatbots and optimisation in building management also hold promise. However, this study also uncovers potential challenges, including data privacy issues, algorithmic biases, and possible job displacement due to increased automation. The insights gleaned from this study underscore the importance of strategic decision-making in harnessing the benefits of AI while mitigating potential drawbacks in the real estate sector.
Practical implications
The paper's practical implications extend to industry professionals, policy makers, and technology developers. Professionals gain insights into how AI can enhance efficiency and accuracy in the real estate sector, guiding strategic decision-making. For policy makers, understanding potential challenges like data privacy and job displacement informs regulatory measures. Technology developers can also benefit from understanding the sector-specific applications and concerns raised. Additionally, highlighting the need for addressing algorithmic bias and privacy concerns in AI systems may foster better design practices. Therefore, the paper's findings could significantly shape the future trajectory of AI integration in real estate.
Originality/value
The paper provides original value by offering a comprehensive analysis of the transformative impact of AI in the real estate industry. Its multi-faceted examination of AI applications, coupled with a critical discussion on potential challenges, provides a balanced perspective. The paper's focus on informing strategic decisions for professionals and policy makers makes it a valuable resource. Moreover, by considering both benefits and drawbacks, this study contributes to the discourse on AI's broader societal implications. In the context of rapid technological change, such comprehensive studies are rare, adding to the paper's originality.
Keywords
Acknowledgements
In keeping with the subject matter, the completion of this Real Estate Insight has been made possible through the utilisation of a diverse array of editorial tools, grammar and spelling checkers, artificial intelligence (AI) technologies, large language models, and the invaluable assistance of human proof-readers. These resources have played a significant role in refining and enhancing the quality of the work presented here. The application of editorial tools, grammar and spelling checkers, and AI algorithms has contributed to the systematic evaluation of the manuscript, ensuring clarity, coherence, and adherence to academic standards.
Moreover, the utilisation of large language models has enabled the generation of accurate and contextually appropriate content, enriching the depth and breadth of the research. While automated tools have been pivotal in the initial stages of the writing process, human proof-readers have provided their expertise and discernment, meticulously reviewing and polishing the manuscript. Their invaluable contributions have greatly improved the overall coherence, accuracy, and readability of this work.
The author would like to express his sincere gratitude to all the individuals involved in these processes. Their dedication, expertise, and collaborative efforts have played a crucial role in shaping the final outcome of this endeavour. Their commitment to excellence has been instrumental in ensuring the high quality of this essay.
Finally, the author would also like to acknowledge the broader academic community and the developers of the aforementioned tools and technologies for their ongoing advancements and contributions. Their tireless efforts continue to revolutionise the landscape of scholarly research and writing, empowering researchers to achieve new heights in knowledge creation.
Citation
Seagraves, P. (2024), "Real Estate Insights: Is the AI revolution a real estate boon or bane?", Journal of Property Investment & Finance, Vol. 42 No. 2, pp. 190-199. https://doi.org/10.1108/JPIF-05-2023-0045
Publisher
:Emerald Publishing Limited
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