What effect will AI have on real estate and business in the future?

With all the buzz lately about AI, I have been pondering this weekend as to what the future will look like with all the technology that has been and will be created going forward. Take ChatGPT, which Microsoft has recently funded the company, OpenAI with $10,000,000. They also had previously provided startup capital for the company back in 2019 and 2020.

How will this application potentially affect property, investors, and our real estate industry locally, nationally, and globally? I truly believe we are already in Web 3.0 and evolving along at hyper-speed with artificial intelligence, and the block chain technology that will provide the power for decentralization, free digital identities with crypto wallets, and open digital economies. You might ask what effect it will have on real estate? Once learned and absorbed, everything will be recorded and processed with ease and transparency. According to Samuel Leeds in his column on 2/16/23 in Entrepreneur magazine and the potential future effects could be dramatic, especially in saving money.

Investors who have multiple properties will be able to use AI to predict with more accuracy maintenance schedules ahead of time by analyzing sensor data and identifying those things in those properties that are being abused and misused; while advising tenants to assist in prevention of and reducing maintenance, thereby saving money. When tenants are home and not home, technology will regulate and minimize waste in the usage of utilities, turning off TVs and lights too! Currently, there are devices that can be used to detect leaks from pipes when you are out or out of town and notify your plumber. Property managers and their crews of contractors will have a better handle on staying on top of sudden emergencies by being immediately notified

BY PHILIP A. RAICES

and then the required repairs can be addressed ASAP, by using AI to be more proactive with predictive maintenance

Home automation is already happening at a very rapid pace between doorbells and external cameras recording everything to lights and smart devices, by using your cell to control and regulate heat while away. Technology will use weather patterns in regulating heat usage too. The application of motion sensors, when no one is home or in the office is already in use in both residential and commercial environments. Samsung produces Smart refrigerators letting you know when you are running low on groceries and even enable you to watch cable on it too as well as other functions! It’s all happening at lightning speed.

Humans will not be able to comprehend or compute the most intricate and accurate methodologies to analyze information. However, AI will, and be much more capable of precisely and accurately predicting future property prices based on millions of bits of data in one location and the commonality of these data points in similar areas. All these data points could predict future market trends and potential investments based on looking at the news, crime statistics, new business openings, business registration records and so much more. With this type of software and technology, investors will be far ahead of the curve compared to others who aren’t using AI and will more easily determine the best investment opportunities.

However, the downside of AI for investors could and will be mistakes that won’t be checked by humans that are made by those predictions,