Artificial intelligence (AI) used to be something we only saw in movies and television, but with the invention of Siri and Alexa, most of us have more experience with AI than ever before. But the use of AI doesn't end at playing our favorite song or ordering our favorite pasta sauce. In fact, AI is now emerging in the real estate industry, helping diversify home ownership, building better business models, and improving connections between agents and customers.

But is it all good? Below we'll look at both the promises, and the perils, of AI in the real estate industry.

Promises of AI in the Real Estate Industry

Artificial intelligence is currently being used to study bias in how people of color purchase and sell properties. For instance, are real estate agents guiding their Black clients to neighborhoods with lower quality schools and higher pollution rates than their white clients? By using AI, buyers would get unbiased help in choosing homes and neighborhoods that are actually good fits for them.

Other promising features of AI are its ability to review documents quickly and efficiently, essentially eliminating human error, and its ability to forecast thousands of options for clients to pay off their debt.

Perils of AI in the Real Estate Industry

With anything, there are downsides. The perils of artificial intelligence in the real estate industry come down to lost jobs and a lack of creativity. Many developers and real estate agents see properties and develop creative ways to design buildings or sell them. AI can never match that kind of creativity. Even with all the information about what customers want inputted and how much a design will cost, AI can't cut costs without human help.

The Future of Real Estate

While AI might be the future of real estate, it doesn't mean that humans are being cut out completely just yet. Creativity and human understanding will allow AI to be used as a tool but not as a substitution for our emotional intelligence.

Melvin Monachan, Attorney at Law, is an experienced real estate attorney. He understands how important your property purchases, or sales, are to you and will work tirelessly to ensure you receive the best legal guidance. If you or someone you love is facing a foreclosure or would like help with their closings, call (347) 389-1682 today or contact us online.