The wave of AI is sweeping through the real estate industry; AI is not just a "replacement" but a means of "deepening" the quality of work. For example, using AI as a partner can automate time-consuming assessments and customer service, allowing professionals to focus on higher value-added tasks. Below, we will summarize the key points of business redesign, the significance of deepening the process, challenges at the time of implementation, and the future vision that INA&Associates has found in the use of AI.
Latest Examples of AI Applications (Property Appraisal, Customer Support, Recommendation, Contract Creation, etc.)
In the real estate industry, specific examples of services using AI technology are increasing: AI-based property appraisal realizes objective and highly accurate appraisal by analyzing a large amount of transaction data to calculate a fair price, rather than relying on conventional rules of thumb.
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Chatbot customer service: AI chatbots respond to customer inquiries 24 hours a day, 365 days a year, enabling immediate response to consultations outside of business hours. The AI automatically provides basic property information and coordinates viewing appointments, allowing the person in charge to concentrate on complex negotiations and proposals.
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Property recommendation: A system in which AI learns the customer's preferences and behavioral history and automatically suggests the most suitable properties individually is gaining popularity. This enables data-driven, highly accurate property introductions without relying solely on the experience of the sales representative.
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Automatic preparation of contracts and important documents: AI is now also able to generate and check drafts of contracts and important documents, thereby automating clerical work. For example, future predictions point to AI streamlining routine tasks such as contract creation and document updating.
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Other examples of applications: AI is attempting to improve business efficiency and services in a wide range of applications, such as automatic creation of market analysis reports, automatic generation of advertising text and flyers, and initial customer service by AI avatars.
Human Business Redesign in the Wake of AI Evolution
With the introduction of AI, humans will need to shift to ever more "advanced operations. Specifically, the following skills and roles will be required
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Deepening of real estate expertise: Advanced knowledge of real estate, including laws, taxation, and local markets, must be further refined to appropriately interpret and supplement the information presented by AI. In particular, human expertise will be a differentiator when providing advice based on complex factors such as age, location, and age of the property.
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Ability to analyze data and utilize AI tools: The ability to handle large amounts of data and make optimal proposals using AI-based market forecasts and contract possibility models is important. For example, using AI to forecast market prices and analyze customer needs based on customer behavior data will enable highly accurate decision-making and proposals.
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Ability to build trusting relationships with customers: It is essential to "respond with a human touch" and "provide a sense of security and trust" that AI cannot fully automate. Real estate is a high-value transaction, and customers seek emotional support as well. The ability to increase customer satisfaction and close deals through appropriate interviews and precise proposals is the key to success.
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Adaptability to change and innovation-oriented: The ability to respond flexibly to rapid changes in the market environment and technology, and a commitment to creating new business models and services are also necessary. For example, differentiation through new ideas, such as subscription-based housing services and developing local markets, will determine competitiveness.
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Collaboration and cross-function with other professions: Collaboration with experts in finance, law, architecture, etc., and a role in designing new services together with developers of AI and digital tools will also be important. These new bridge-type occupations (e.g., prompt engineers) will support the co-creation of AI and people.
Significance of "business deepening" rather than "business efficiency improvement
The essence of introducing AI is not simply to improve efficiency, but to enhance customer value, and AI can revolutionize the "customer experience" with 24-hour chatbots, VR/AR previews, etc. For example, chatbots and VR previews can be used to enhance the customer experience. For example, VR previews and chatbots are expected to provide services that transcend physical constraints and increase customer satisfaction. It is also important to realize "advanced decision-making accuracy" based on big data analysis using AI. Price and investment decisions, which used to be based on intuition and experience, can be made more precisely using AI analysis, leading to risk reduction. Furthermore, the extra capacity created by delegating routine tasks to AI can be allocated to "value-added creation. By utilizing technology to provide services that exceed customer expectations, real estate agents can evolve from mere information brokers to value creators.
Challenges in the field (lack of skills, understanding of the system, organizational mindset)
Preparation and addressing issues are essential for AI implementation. First, technical challenges include collecting sufficient data in terms of quality and quantity, improving the accuracy of AI models, and integrating AI with existing systems. In addition, it is necessary to clearly separate the tasks suitable for AI from those to be handled by humans, and design a cooperative system in which AI is actively used for large data processing and routine tasks (e.g., price calculation and FAQ response), whereas humans are responsible for creative and flexible responses (e.g., trouble shooting and individual negotiation). In terms of human resources and skills, we are also looking for a new type of human resource.
In terms of human resources and skills, there is an urgent need to secure and train personnel who understand and can use AI. If there are few AI specialists in the company, reskilling through recruitment, external cooperation, and in-house training is necessary. Existing employees must also acquire new skills (data literacy, AI tool operation) that can complement AI, and "change their mindset to work with AI" must be promoted.
Furthermore, it is also important to change the mindset of the organization. Efforts must be made to deepen understanding of DX promotion within the company, strengthen interdepartmental cooperation, and dispel resistance to AI implementation. The key to success is to strategically introduce AI while resolving these organizational issues step by step.
Future Outlook: Real Estate Services Co-Created by AI and People
The evolution of AI will greatly expand the future of real estate services. For example, new business models are expected to emerge, such as a direct transaction platform without intermediaries that combines blockchain and AI, and a housing subscription model that integrates property provision with lifestyle support. In this transformation, real estate agents will change their role from "property introducer" to "expert advisor for life planning and investment strategies," with AI taking on the role of interacting with customers and analyzing data, and co-creation progressing in the form of humans adding value through creativity and trust building. In fact, there are reported cases where AI has improved closing rates by 30% or more, and it can be said that the next generation of real estate services in which AI and humans collaborate will determine competitiveness. In the future, services that combine the strengths of technology and people, such as virtual previews by AI avatars and AI life plan proposals, will become commonplace.
As described above, the introduction of AI will not only "improve efficiency" but also "deepen" real estate operations. It is expected that the entire industry will evolve to a stage of creating new added value by shifting humans to more creative and strategic roles, while achieving a more sophisticated customer experience and decision-making.
