For artificial intelligence, 2022 was a yr of breakthroughs. Image generation models corresponding to DALL-E, MidJourney and StableDiffusion got here in early within the yr, garnering much attention, and ChatGPT went viral near the tip.
Riding on the euphoria generated by these technological developments, about $49 billion in enterprise capital was invested in AI in 2022 — 40% greater than a yr earlier, per CB Insights.
Yet, there was little conversation about how AI will play a growing role in real estate, a greater than $50 trillion asset class, and one among the important thing drivers of the worldwide economy. We consider this represents a major opportunity for real estate tech entrepreneurs.
AI’s emergence will cut through material use cases in real estate tech, from search and listings to mortgages, construction and sustainability.
Notably, a few of the most respected corporations within the early years of the true estate tech cycle have created significant value across the subsectors listed below. All of that shall be in play with AI in the long run.
Residential search and listings
Google’s first real threat to its Search product could come through Bing’s integration with ChatGPT.
That said, each Search and Bing should not tailored for real estate, which partly explains why Zillow, Redfin and StreetEasy have turn out to be useful businesses. There’s a major opportunity for an ML-enabled search and listings engine that leverages large language models, integrates with MLS providers and provides more robust results for buyers and renters.
AI’s emergence will cut through material use cases in proptech, from search and listings to mortgages, construction and sustainability.
Real estate brokerages
We consider real estate will at all times need the consultative hand of brokers. They’re invaluable and can’t get replaced when a person or family is making the biggest financial decision of their lives.
Yet, a lot of services provided by brokers and brokerages might be automated in a similarly personalized and consultative manner. AI-powered chatbots that power real estate brokerages have great potential to disrupt this marketplace.
Mortgage marketplaces and underwriting
The only-family mortgage market is estimated to be price greater than $13 trillion in america alone.
Mortgage search and underwriting have gotten higher through the years, but there’s room for improvement. For one, the industry stands out for its abject lack of personalization.
AI has the flexibility to create and work off infinite customer personas, providing more robust search and underwriting solutions.
Renters’ and homeowners’ insurance
Landlords and mortgage lenders typically mandate renters/buyers get an insurance policy before they move in.
Unlike real estate brokerages, where the agent’s role is critical, it’s our belief that AI can completely automate the insurance layer, especially because it pertains to renters’ and homeowners’ insurance policies.
These products are relatively cheaper and never as complex, and ML-tooled bots can improve the client’s journey from acquisition and underwriting to policy administration and claims management.