Artificial Intelligence (AI) continues to play a role in almost every area of our lives. Artists use it to create works of art, writers use it for inspiration, and even physicians use it to help improve health outcomes. It should come as no surprise that investors, property owners, and real estate agents are finding uses for AI that will impact the real estate market.
Three current examples include the following.
#1: Listings and advertising campaigns
AI can provide innovative ideas for real estate agents looking to put together catchy ad campaigns. Machine learning also helps real estate agents and investors predict real estate property values and check a listing’s value to see if it is in line with comparable properties.
#2: Property management
AI can help both renters looking for a new property and owners looking to market their listings by helping with the application process, completing market analytics, and tracking leasing performance.
#3: Drafting real estate documents
It is tempting to take advantage of the opportunity to have AI take over complicated and mundane tasks, like legal writing. Although tempting, this move can come with dire consequences. An attorney out of New York recently learned just how serious the risk is when he used AI to help write a legal brief. The chatbot put together a fascinating piece to help the attorney win his case. There was just one problem: it made things up. AI fabricated prior case law and citations to write the brief. The attorney did not review the brief for accuracy before sending it to the court and is now facing sanctions.
Similar issues are likely if those going through a real estate deal chose to rely on AI to put together their real estate documents. Although AI is beneficial for certain areas of real estate, this is one that could lead to unintended consequences. Instead, it is wise to have legal professionals draft the documents to reduce the risk of surprises and better ensure the documents protect your interests.