Artificial Intelligence (AI) has dominated discussions across all walks of life in recent years. Some happily embrace AI, pointing out its efficiency and transformative potential, while others remain unsure, fearing it dissipates the human touch. In the real estate industry, AI’s role is still being discovered and defined, with many professionals believing it is poised to revolutionize the space by shaping markets, influencing investments, bolstering sustainability efforts, and more.
A debate has emerged as numerous brokerage firms are using AI to streamline recruitment processes. Specifically, the platform known as Courted has been adopted by several firms to predict employee attrition and recruitment likelihoods. Other companies are quietly developing their own platforms to assess candidates based on their past experiences and future expectations. Predictive analysis through AI offers plenty of advantages for many firms. Coldwell Banker’s Southeast President, Duff Rubin, noted, “There’s a better chance from a company perspective when we get one of these recruits that’s been flagged on the AI reports… it just helps us allocate our resources effectively.”1
On the other hand, AI’s role in recruiting doesn’t hold the same appeal for certain firms. For instance, Brown Harris Stevens in New York has made it clear that while AI has a place within their organization, it isn’t currently being utilized in recruitment, according to CEO Bess Freedman (Also from the same article). Many others share this sentiment, contending that real estate is deeply rooted in relationships, an aspect AI can’t effectively assess—only a human can.
The ongoing debate about AI’s integration into the industry extends beyond recruitment. While the field advances rapidly, the pivotal question is how its implementation will reshape the industry and affect transparency. Companies and individuals are bullish on AI’s potential benefits and willing to invest in talent and knowledge acquisition to gain a competitive edge over those who do not. Only time will tell if this will be yet another hastening factor driving this traditionally relationship-based industry to become more data-driven and less personable and instinctual.
1. Sheridan Wall, “Brokerages Tap Ai to Rev Recruitment,” The Real Deal, September 13, 2023, https://therealdeal.com/magazine/national-september-2023/brokerages-tap-ai-to-rev-recruitment/.
This article does a great job discussing the ongoing AI debate in real estate. It talks about the benefits of AI, like Courted’s recruitment predictions, while also recognizing the importance of human relationships, as mentioned by Bess Freedman from Brown Harris Stevens.
The article raises a key question: how AI will reshape the industry and transparency. It’s clear that some are eager to embrace AI for a competitive edge. The author provides a balanced view of AI’s role in real estate, making it a valuable contribution to the conversation.
Good read. But what im talking about neighborhoods!