In the midst of the technological boom, on a micro level gadgets have seamlessly integrated into both our personal and professional lives, but we also don’t often consider how it has changed industries on a more macro level. As real estate investors, it’s important to know and understand technology’s impact on the real estate sector. Currently, many industries, including ours, trend towards technology developments relating to Artificial Intelligence.
To understand the impact of these advancements, we need to properly define AI. Many assume that with the introduction of robot Sophia, we have finally achieved the level represented in pop culture with programs like that of Westworld or I, Robot, which isn’t exactly accurate. While a Sophia did obtain citizenship in Saudi Arabia, she remains more of a publicity stunt for the field rather than a life-like or humanoid robot.
We can break AI into two categories, artificial applied intelligence and artificial general intelligence. The applied type pertains to systems that optimize tasks in very niche specific categories like automating an online retailers e-commerce distribution center or automating benefits programs. That’s not to say applied lacks refined capabilities. As described on IT Chronicles, “By incorporating machine learning (ML), natural language processing (NLP) and tight integrations with external systems of record, more advanced forms of applied AI go beyond scanning knowledge bases and automating routine tasks to intelligently correlate and expose valuable information and services to users in real time.”
The general category is more elusive. While many assume that Sophia falls into the category, she’s not necessarily ‘advanced’ enough to fit the bill. To fall into this realm, a bot or system has to be capable of mimicking human processes like emotions and logic. As Robert Young explains, “This unconfined form of AI is intended to demonstrate understanding and reasoning skills with a breadth and depth of knowledge that allows it to easily traverse between vastly unrelated topics and use cases, just as a human can.”
Artificial Intelligence Opportunities
Given the way Artificial Intelligence has and continues to make headlines, it was only a matter of time until it overlapped with the property sector. As if technology hasn’t already put the real estate industry on a tilt, now AI presents new opportunities to redesign the landscape and turn it upside down altogether. In reality, our current level of AI relates to automation more than humanoid bots. The tech helps expedite processes and minimize mistakes resulting from human error.
As Forbes Contributor, Linda Liberatore, explains, “Many of the property management software solutions are exploring the current overabundance of resident touch points and staff interactions to streamline and automate this relationship. We need to satisfy residents with timely communications and continue the path of evaluating the emotion, attitude and tone of our interactions.” As covered in our PREVIOUS BLOGPOST, AI doesn’t necessarily eliminate the role of the landlord, but it does lighten the workload and create more satisfied customers, which every investor wants because happy tenants mean long-term tenants.