AIl About AI: How Luxury Brands and Real Estate Agents Leverage AI

The technology can transform the design process, forecast demand and handle supply chain management, but it can’t replace one-on-one relationships

Artificial intelligence and machine learning are profoundly transforming how luxury brands and real estate firms engage with customers, delivering more personalized, efficient and immersive experiences, all while enhancing customer satisfaction and loyalty. They won’t, however, ever replace the need for a top agent.

REAL ESTATE

Luxury real estate agents are increasingly embracing AI in almost all stages of the sales process, to meet growing demand for personalized experiences and enhance efficiency.

AI is another strong tool in the agent’s toolbox, helping to optimize property searches and marketing strategies.

The Agency has utilized AI to enhance social media marketing of land property for sale. AIgenerated images help buyers visualize potential developments, making listings more appealing and engaging. This approach boosts visibility on social platforms, attracts more buyers, and streamlines the property-buying process.

JLL's 2023 Global Real Estate Technology Survey determined that more than 80% of real estate occupiers, investors and developers planned to increase their real estate technology budget over the next three years. According to the same report, there is an ever-growing number of companies globally providing AI-powered services to real estate and already delivering value in terms of improved efficiency and cost-savings.

According to a survey of agents from The Agency, nearly 73% say they’re using AI, mostly for copywriting, marketing and lead generation, and nearly 90% say they plan to use it more in the future. When asked how they plan to use AI in the future, respondents mentioned accounting, pricing models, deal-making, and improving photos and videos. Making those steps more efficient means agents have more time for one-and-one relationships with their clients and can focus on white-glove service.

“AI is transforming the way our agents work, allowing them to serve clients with even greater efficiency and care,” says Mauricio Umansky, CEO

and Founder of The Agency. “We’re seeing a real shift in how business is done. By streamlining processes like accounting, pricing models, and content creation, AI frees up more time for agents to focus on what really matters—the personalized, white-glove service our clients expect.”

Algorithms are being used to match clients with properties that suit their preferences and needs. By analyzing vast amounts of data, including past searches, preferred locations, budget and lifestyle factors, AI can provide highly personalized property recommendations.

AI enables smart filtering options in property search engines, allowing clients to find properties that meet hyperspecific criteria, such as architectural style, proximity to amenities or eco-friendly features. Predictive analytics also play a role by identifying properties that may soon become available or are likely to appreciate in value, giving clients a competitive edge in the luxury market.

For luxury clients who view real estate as an investment, AI can offer predictive analytics that assess the potential return on investment of different properties. By analyzing factors like historical price trends, neighborhood development plans and economic indicators, AI can help clients identify properties that are likely to appreciate, ensuring they make sound investment choices.

“From my perspective and interest, the most exciting area where AI is being applied is in creative—both development and automation,” says Matt Plaia, Art Director at The Agency. “At its most basic level, yes, you can generate images, expand backgrounds and write copy. But you can also develop 360-degree marketing plans and craft commercial scripts that are accompanied with self-prompted storyboards. For some time now, there has also been movement in the augmented reality/virtual reality space, such as Zillow’s 3D Home—offering services like property tours and highly immersive experiences. However, accessibility has always been the main issue in scaling those forms of media.”

The Agency “has employed the technology from Adobe’s Firefly to elevate brand photography, all the while maintaining a careful approach so as to not lose any authenticity,” he says. “In a recent video, we used Firefly to develop the stills for a sequence that was eventually animated using another AI tool: Runway. This video generation technology—which also just partnered with Lionsgate—has been integrated into our video content in various ways, from animating motionless photography and creating dynamic content to directing our own cinematic scenes when stock media simply does not cut it.”

AI is a true soup-to-nuts proposition in real estate since it also can be used to streamline the transactional process. AI tools can automate the generation of contracts and other legal documents, ensuring accuracy and reducing the time it takes to close deals. The technology can also assist in the negotiation process by analyzing market data and previous transactions to suggest optimal pricing strategies. AIdriven tools can help agents determine the best offer or counteroffer based on real-time data, enhancing the likelihood of a successful transaction.

LUXURY BRANDS

Similar to real estate brands, AI and ML allow luxury brands to analyze vast amounts of customer data, including browsing history, purchase patterns and social media activity, to generate hyper-personalized recommendations that tailor product suggestions to individual preferences. Gucci has been at the forefront of this approach by using AI-driven recommendation engines to suggest products based on a customer’s previous interactions with the brand, leading to higher engagement and conversion rates.

Companies are increasingly using AI to dynamically personalize the content that users see on their websites or apps. Examples include personalized home pages, product listings and marketing messages that adapt in real time based on the user’s behavior. Burberry employs AI to personalize the shopping experience on its digital platforms, ensuring that each customer receives a unique, tailored experience.

AI-driven chatbots are revolutionizing customer support by providing instant, around-theclock assistance, from product and real estate recommendations to order tracking, without the need for human intervention. Louis Vuitton famously uses an AI-powered chatbot named “Louis” to assist customers online, providing immediate responses and enhancing the overall customer experience.

Advances in natural language processing have enabled AI chatbots to engage in more natural, conversational interactions with customers. This humanlike interaction is particularly important in the luxury sector, where personalized service is a key differentiator. Brands like Dior are leveraging AI to create chatbots that not only answer questions but also engage customers in meaningful dialogue, reflecting the brand’s tone and style.

These new technologies are also enabling luxury brands to predict customer behavior and anticipate their needs by analyzing past purchases and browsing patterns. Chanel uses predictive analytics to identify customers who are likely to purchase new collections, enabling the brand to target them with personalized marketing campaigns.

AI-powered augmented reality tools are transforming the online browsing experience by allowing customers to virtually try on products or tour their way through real estate listings. LVMH’s Sephora uses AI-driven AR to enable customers to virtually try on makeup, helping them make informed purchasing decisions without needing to visit a physical store. This not only improves customer satisfaction but also enhances a company’s profitability by lowering return rates.

AI is also transforming how luxury brands create and distribute content on social media. By analyzing engagement metrics, AI tools can identify which types of content resonate most with specific audiences, allowing brands to tailor their social media strategies accordingly. Dolce & Gabbana uses AI to analyze social media trends and optimize its content strategy, ensuring that its posts align with current consumer interests and preferences.