9 Ways Artificial Intelligence is Being Used in Real Estate

Artificial intelligence is transforming the real estate industry by introducing new efficiencies in property management and transaction processes. Key applications include the use of AI-generated 3D models for virtual tours and the automation of underwriting tasks. These technological advancements are reshaping how the commercial real estate sector handles property sales and risk assessment.

The real estate industry is experiencing a significant shift as artificial intelligence drives innovation and improves efficiency across various stages of property management and sales. According to contributing analyst Jeremy Bowman and editor Frank Bass of The Motley Fool, AI is being utilized to change the fundamental ways properties are bought and sold, offering tools that streamline complex tasks. This evolution is particularly relevant for the commercial sector, where efficiency and data-driven decision-making are paramount for maintaining a competitive edge in the market.

One of the most prominent applications of AI highlighted in the report is the development of AI-generated 3D models. These models enable prospective buyers to conduct comprehensive tours of a property from their own homes, providing a level of accessibility that was previously difficult to achieve. For commercial real estate, this means that stakeholders can evaluate potential investments or office spaces remotely, saving time and resources during the initial phases of property acquisition.

In addition to marketing and tours, AI is becoming a staple in the underwriting process. The technology is used to evaluate employment history and credit scores, allowing for a more automated and potentially more accurate assessment of a borrower's or tenant's financial standing. While AI offers these powerful capabilities, the report notes that it is unlikely to replace humans entirely. Many real estate situations require a level of human interaction and complex problem-solving that AI is not yet equipped to handle, suggesting a future where AI serves as a supportive tool for industry professionals.