ChatGPT has taken the world by storm, accumulating users faster than any consumer application in history. But while ChatGPT has dominated the headlines, real estate has already been transformed by AI. From AI-powered valuation models to chatbots and revenue maximization tools, AI is already an ever-present force in real estate – but its full transformation has yet to be realized.
SwissCognitive Guest Blogger: Harvard Graduate School of Design Executive Education – “Beyond ChatGPT: How Artificial Intelligence and Machine Learning are Transforming the Real Estate Industry” – regarding the A.I., Machine Learning, and the Built Environment: Fundamentals & Proptech Applications three-day intensive online course.
ChatGPT has taken the world by storm, accumulating users faster than any consumer application. But while ChatGPT has dominated the headlines, real estate has already been transformed by AI and machine learning.
In residential real estate, proptech giants such as Zillow and Redfin are powered by AI. First, they used algorithmic valuation models to generate values for every home in the US. Then, they allowed homeowners to generate floorplans to help them sell their homes. Finally, they moved on to “iBuying”, where they used algorithms to attempt to “flip” houses for a profit — buying low and selling high after some cosmetic renovations. Their successes and failures in these AI-driven initiatives have been well-documented, and their stock prices have risen and fallen in lockstep.
Meanwhile, in multifamily real estate, major property owners now use AI-powered chatbots to speak with tenants directly to support the sales process and ensure satisfaction by receiving and vetting maintenance requests. These chatbots work round the clock – so if a light bulb breaks at 2 am on a Friday, that repair request is received and prioritized accordingly – reducing ownership costs. Owners also use AI-powered tools such as RealPage’s YieldStar to maximize revenue by setting rental unit prices based not on historical data and gut instinct but real-time insights from lease transaction data for more than 13 million units across the country. This product may have contributed to unprecedented rapid increases in US rents in 2022.
AI is already an ever-present force in real estate – but its full transformation has yet to happen. Our Lecturer in Architectural Technology Jose L. García del Castillo y López posits that Machine Learning is poised to transform architectural design, altering the role of the architect forever. He even states that “the AI revolution may have an even deeper impact in unraveling the untapped creative potential of an even larger community of end users by harnessing one of the greatest affordances of neural networks: their capacity to be trained without writing a computer code.” In fact, he believes that “the predictive and suggestive capacities of AI agents as creative companions may result in a global augmentation of our intellectual capacities.”
This March, Jose Luis Garcia del Castillo y Lopez teaches A.I., Machine Learning, and the Built Environment: Fundamentals & Proptech Applications. The three-day online course helps you to gain the knowledge and practical know-how to assess and harness AI for use in your everyday work – and better understand the transformation already underway in real estate.
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About the Author:
The mission of Executive Education at the Harvard Graduate School of Design is to educate leaders to build smarter, healthier, greener, more beautiful, and overall better cities. Their work spans design, architecture, real estate, technology, finance, city planning, leadership, economic development, and all the key sectors that shape life in cities present and future.