{"id":2907,"date":"2023-02-07T17:17:48","date_gmt":"2023-02-07T17:17:48","guid":{"rendered":"https:\/\/nilg.ai\/?p=2907"},"modified":"2024-05-29T09:01:01","modified_gmt":"2024-05-29T09:01:01","slug":"artificial-intelligence-in-real-estate","status":"publish","type":"post","link":"https:\/\/nilg.ai\/pt\/202302\/artificial-intelligence-in-real-estate\/","title":{"rendered":"Artificial Intelligence in Real Estate"},"content":{"rendered":"<p><img decoding=\"async\" class=\"aligncenter wp-image-2910 size-large\" src=\"https:\/\/nilg.ai\/wp-content\/uploads\/2023\/02\/investing-house-concept-toy-house-figurine-couple-dollar-banknote-background-1024x683.jpg\" alt=\"\" width=\"1024\" height=\"683\" srcset=\"https:\/\/nilg.ai\/wp-content\/uploads\/2023\/02\/investing-house-concept-toy-house-figurine-couple-dollar-banknote-background-1024x683.jpg 1024w, https:\/\/nilg.ai\/wp-content\/uploads\/2023\/02\/investing-house-concept-toy-house-figurine-couple-dollar-banknote-background-300x200.jpg 300w, https:\/\/nilg.ai\/wp-content\/uploads\/2023\/02\/investing-house-concept-toy-house-figurine-couple-dollar-banknote-background-768x512.jpg 768w, https:\/\/nilg.ai\/wp-content\/uploads\/2023\/02\/investing-house-concept-toy-house-figurine-couple-dollar-banknote-background-1536x1024.jpg 1536w, https:\/\/nilg.ai\/wp-content\/uploads\/2023\/02\/investing-house-concept-toy-house-figurine-couple-dollar-banknote-background-600x400.jpg 600w, https:\/\/nilg.ai\/wp-content\/uploads\/2023\/02\/investing-house-concept-toy-house-figurine-couple-dollar-banknote-background.jpg 1800w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">While many industries have benefited from Artificial Intelligence, Real Estate is essentially a virgin territory to apply AI. This blog post will show you how you can transform Real Estate with AI, the key consumers of these solutions, and the challenges the industry faces in its adoption.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Suppose you are running a Multiple Listing Service, a Real Estate agency chain, an investment fund, or you simply want to create a startup in the industry. In that case, you will discover dozens of use cases to optimize your Real Estate operations with Artificial Intelligence.<\/span><\/p>\n<div class=\"course-cta\">\n\t\t<div class=\"course-cta-img\"><img decoding=\"async\" width=\"582\" height=\"903\" src=\"https:\/\/nilg.ai\/wp-content\/uploads\/2022\/08\/4-194x301@3x.png\" class=\"attachment-full size-full\" alt=\"\" srcset=\"https:\/\/nilg.ai\/wp-content\/uploads\/2022\/08\/4-194x301@3x.png 582w, https:\/\/nilg.ai\/wp-content\/uploads\/2022\/08\/4-194x301@3x-193x300.png 193w, https:\/\/nilg.ai\/wp-content\/uploads\/2022\/08\/4-194x301@3x-300x465.png 300w\" sizes=\"(max-width: 582px) 100vw, 582px\" \/><\/div>\n\t\t<div class=\"course-cta-content\"><h6>Course, Templates<\/h6><h3>Data Ignite<\/h3>\n\t\t\t<p>Build your company data roadmap using our Data Ignite methodology<\/p>\n\t\t\t<a href=\"https:\/\/nilg.ai\/pt\/product\/data-ignite\/\" class=\"cta_btn\">Saber mais<\/a>\n\t\t<\/div>\n\t<\/div>\n<h2><span style=\"font-weight: 400;\">Who are the key consumers of AI in Real Estate?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The primary consumers of Artificial Intelligence models in Real Estate lay in four groups:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Construction companies:<\/b><span style=\"font-weight: 400;\"> looking to shorten the construction time and costs.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Investors (professional investors or retail ones):<\/b><span style=\"font-weight: 400;\"> understanding the potential of an investment.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Realtors:<\/b><span style=\"font-weight: 400;\"> managing leads in a personalized and optimal way.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Property managers: <\/b><span style=\"font-weight: 400;\">improving the management of tenants\u2019 contracts and streamlining property maintenance.<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\">What are the main applications of AI in Real Estate?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Each of these groups optimizes for different targets at different stages of the property lifecycle. As such, they require various forms of support AI can provide. Therefore, we will divide the applications according to their target user:<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">AI application for Construction<\/span><\/h3>\n<p><img decoding=\"async\" class=\"size-medium wp-image-2919 alignleft\" src=\"https:\/\/nilg.ai\/wp-content\/uploads\/2023\/02\/foreman-builder-engineer-worker-looking-large-building-construction-site-sunny-day-hard-work-300x200.jpg\" alt=\"\" width=\"300\" height=\"200\" srcset=\"https:\/\/nilg.ai\/wp-content\/uploads\/2023\/02\/foreman-builder-engineer-worker-looking-large-building-construction-site-sunny-day-hard-work-300x200.jpg 300w, https:\/\/nilg.ai\/wp-content\/uploads\/2023\/02\/foreman-builder-engineer-worker-looking-large-building-construction-site-sunny-day-hard-work-768x512.jpg 768w, https:\/\/nilg.ai\/wp-content\/uploads\/2023\/02\/foreman-builder-engineer-worker-looking-large-building-construction-site-sunny-day-hard-work-600x400.jpg 600w, https:\/\/nilg.ai\/wp-content\/uploads\/2023\/02\/foreman-builder-engineer-worker-looking-large-building-construction-site-sunny-day-hard-work.jpg 900w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">We\u2019ve seen a growing demand for Computer Vision technologies that support the <strong>digitalization of construction blueprints<\/strong>. Why? Mainly to automate error-prone and resource-intensive tasks such as budgeting (estimating materials, timelines, etc.).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Another area where Computer Vision can excel in Real Estate can be found in <strong>property inspection<\/strong>, compliance, and work safety. AI models can help you identify risks that you could neglect otherwise.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The ultimate goal is to produce <strong>personalized designs<\/strong> that optimally fit the end-user needs. These designs should consider explicit requirements (e.g., number of rooms, bathrooms, etc.) and overall efficiency (i.e., construction cost, energy efficiency, etc.). Some research has flourished in this area. However, we still consider it a long run until we see genuinely autonomously designed buildings. In the meantime, let\u2019s use AI to support the design, providing key metrics that could help them make better decisions and iterate faster.<\/span><\/li>\n<\/ul>\n<h3><span style=\"font-weight: 400;\">AI applications for Investors<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Here, we will include both buyers and sellers. As well as professional investors and homeowners. Most of the AI applications for Real Estate investors consist of accurately estimating KPIs about individual properties and markets. Examples of such indicators include:<\/span><\/p>\n<p><img decoding=\"async\" class=\"size-medium wp-image-2922 alignright\" src=\"https:\/\/nilg.ai\/wp-content\/uploads\/2023\/02\/home-salesman-stretches-holding-black-pen-300x200.jpg\" alt=\"\" width=\"300\" height=\"200\" srcset=\"https:\/\/nilg.ai\/wp-content\/uploads\/2023\/02\/home-salesman-stretches-holding-black-pen-300x200.jpg 300w, https:\/\/nilg.ai\/wp-content\/uploads\/2023\/02\/home-salesman-stretches-holding-black-pen-768x512.jpg 768w, https:\/\/nilg.ai\/wp-content\/uploads\/2023\/02\/home-salesman-stretches-holding-black-pen-600x400.jpg 600w, https:\/\/nilg.ai\/wp-content\/uploads\/2023\/02\/home-salesman-stretches-holding-black-pen.jpg 900w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/nilg.ai\/pt\/202106\/automated-valuation-models-for-real-estate\/\"><span style=\"font-weight: 400;\">Automated valuation of properties<\/span><\/a><span style=\"font-weight: 400;\">: so the investor knows what would be a fair value for that property.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">What would be the <strong>After-Repair Value<\/strong> after doing X? So, the investor can make an informed decision about the cost-benefit of each renovation.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><strong>Key financial indicators<\/strong> in their various colors and flavors: ROI, gross yield, net yield, appreciation, occupancy rates, rent value, etc.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Forecasting the <strong>dynamics of a particular market<\/strong>. For example, identifying which markets are gaining demand, where\u2019s the supply falling short, etc.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Supporting the buying\/selling process: realizing the trade-off between the asking price, offer, and <strong>likelihood of closing the deal<\/strong>.<\/span><\/li>\n<\/ul>\n<h3><span style=\"font-weight: 400;\">AI applications for Realtors<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Realtors are salespeople with a steroid charge of street knowledge about Real Estate. As such, the applications of AI for realtors are similar to those observed in general marketing and CRM for optimizing the customer journey. You can learn more about it in our Youtube video: <\/span><a href=\"https:\/\/youtu.be\/e2TPJib1ELY\"><span style=\"font-weight: 400;\">11 AI use cases in Marketing to improve your customer journey<\/span><\/a><span style=\"font-weight: 400;\">. In summary, AI can help realtors optimize the overall sales funnel:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><strong>Lead scoring<\/strong>.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Personalized <strong>recommendations<\/strong>.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Identifying <strong>churners<\/strong> (sellers that will leave for another realtor).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Identifying buyer capacity (and willingness to buy).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Reaching each lead at the right time, through the right channel.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">In 2021, we won an <\/span><a href=\"https:\/\/nilg.ai\/pt\/202107\/nilg-ai-among-winners-of-the-datahub-ruhr-open-innovation-call\/\"><span style=\"font-weight: 400;\">open innovation challenge<\/span><\/a><span style=\"font-weight: 400;\"> promoted by <\/span><a href=\"https:\/\/vonovia.de\/\"><span style=\"font-weight: 400;\">Vonovia<\/span><\/a><span style=\"font-weight: 400;\"> and the <\/span><a href=\"https:\/\/www.handsondata.de\/en\/\"><span style=\"font-weight: 400;\">Hands-on Data<\/span><\/a><span style=\"font-weight: 400;\"> Initiative. Vonovia is one of the largest European companies, with over 500k units. In the challenge, we worked on a recommender system (called Flat Finder) to help Vonovia suggest better-suited flats to their leads, improving the overall customer experience and minimizing the time to find the right apartment.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">AI applications for property managers<\/span><\/h3>\n<p><span style=\"font-weight: 400;\"><img decoding=\"async\" class=\"size-medium wp-image-2921 alignright\" src=\"https:\/\/nilg.ai\/wp-content\/uploads\/2023\/02\/plumber-repair-experienced-attentive-middleaged-man-examining-bottom-kitchen-sink-300x200.jpg\" alt=\"\" width=\"300\" height=\"200\" srcset=\"https:\/\/nilg.ai\/wp-content\/uploads\/2023\/02\/plumber-repair-experienced-attentive-middleaged-man-examining-bottom-kitchen-sink-300x200.jpg 300w, https:\/\/nilg.ai\/wp-content\/uploads\/2023\/02\/plumber-repair-experienced-attentive-middleaged-man-examining-bottom-kitchen-sink-768x511.jpg 768w, https:\/\/nilg.ai\/wp-content\/uploads\/2023\/02\/plumber-repair-experienced-attentive-middleaged-man-examining-bottom-kitchen-sink-600x399.jpg 600w, https:\/\/nilg.ai\/wp-content\/uploads\/2023\/02\/plumber-repair-experienced-attentive-middleaged-man-examining-bottom-kitchen-sink.jpg 900w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/>On the property management side, most use cases rely on forecasting events concerning the property (e.g., damages) or the contract with the client (e.g., churn). As such, you may think of AI applications for property management, such as<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Predicting <strong>churn at a tenant level<\/strong>. Ideally, such a prediction should respond to a specific commercial action the owner wants to apply. For example, what\u2019s the churn probability if we increase the rent? Or in case we only renew the contract for one year?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Predicting which customers will most likely have <strong>delays on their monthly payments<\/strong> is a relevant application where AI can support property managers and investors.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Predicting <strong>occupancy rate<\/strong> versus pricing (especially relevant for short-term rentals).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The <strong>likelihood of certain damage<\/strong> arising from a unit. Alternatively, how much is a property expected to demand money-wise soon?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Also, there\u2019s a lot of potentials to optimize the workforce for <strong>tenant complaints<\/strong>, from identifying the root cause to identifying the best team to solve the problem and the best time to visit the property.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">In 2023, <a href=\"https:\/\/vonovia.de\/\">Vonovia<\/a> launched three open innovation challenges through <a href=\"https:\/\/www.handsondata.de\/en\/\">Hands-on Data<\/a>. All of them with a focus on <strong>optimizing the management of properties<\/strong>. We won the Image Insight challenge, triggering a new collaboration between NILG.AI and <a href=\"https:\/\/vonovia.de\/\">Vonovia<\/a>. In the challenge, we want to identify and characterize the damages on a tenant request, understanding who is the right team to proceed with the work and what replacement parts would be required. The other two challenges focused on optimizing the workforce for renovation (i.e., understanding delays, reducing bottlenecks, etc.) and optimizing the energy efficiency of the apartments through dynamic control of their heating systems.<\/span><\/p>\n<p><span data-slate-fragment=\"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\">  \n\n <div class=\"author-cta\">\n\t\t<div class=\"author-cta-img\">\n\t\t    \n\t\t    <img decoding=\"async\" width=\"1024\" height=\"906\" src=\"https:\/\/nilg.ai\/wp-content\/uploads\/2022\/08\/Web-Kelwin.png\" class=\"attachment-full size-full\" alt=\"Kelwin Fernandes NILG.AI\" srcset=\"https:\/\/nilg.ai\/wp-content\/uploads\/2022\/08\/Web-Kelwin.png 1024w, https:\/\/nilg.ai\/wp-content\/uploads\/2022\/08\/Web-Kelwin-300x265.png 300w, https:\/\/nilg.ai\/wp-content\/uploads\/2022\/08\/Web-Kelwin-768x680.png 768w, https:\/\/nilg.ai\/wp-content\/uploads\/2022\/08\/Web-Kelwin-600x531.png 600w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/>\t\t    <\/div>\n\n<div class=\"author-cta-content\">\n\t<h3>Do you want to further discuss this idea?<\/h3><p>Book a meeting with <strong>Kelwin Fernandes<\/strong><\/p>\t<a class=\"cta_btn\" onclick=\"Calendly.showPopupWidget('https:\/\/calendly.com\/d\/d4z-sb4-dg7');return false;\"  \n\">Meet Kelwin<\/a>\n\t\t\t\n\t<a href=\"https:\/\/nilg.ai\/pt\/team\/kelwin-fernandes\/\" class=\"author-cta-link\">Saber mais<\/a>\n\t\t\t<\/div>\n\t<\/div>\n<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Why is Real Estate falling behind in AI versus other industries?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">We have worked with several clients in the industry. However, as a whole, we haven\u2019t seen a major adoption of AI in Real Estate. There are four main reasons Real Estate hasn\u2019t fully benefited from Artificial Intelligence compared with other industries:<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Lack of reliable open data.<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Most open data comes from Multiple Listing Services (MLS) such as <\/span><a href=\"https:\/\/www.idealista.pt\/\"><span style=\"font-weight: 400;\">idealista<\/span><\/a><span style=\"font-weight: 400;\"> e <\/span><a href=\"https:\/\/www.imovirtual.com\/\"><span style=\"font-weight: 400;\">imovirtual<\/span><\/a><span style=\"font-weight: 400;\"> in Portugal, which isn\u2019t entirely reliable. We face problems such as duplicate listings, low-quality entries, and, most importantly, the data is about asking prices but doesn\u2019t consider the final transaction value. So, <strong>data is biased and represents an overestimate of an essential value in Real Estate<\/strong>: price.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Market Fragmentation<\/span><\/h3>\n<p><span style=\"font-weight: 400;\"><img decoding=\"async\" class=\"size-medium wp-image-2925 alignright\" src=\"https:\/\/nilg.ai\/wp-content\/uploads\/2023\/02\/group-small-businessmen-standing-coins-300x200.jpg\" alt=\"\" width=\"300\" height=\"200\" srcset=\"https:\/\/nilg.ai\/wp-content\/uploads\/2023\/02\/group-small-businessmen-standing-coins-300x200.jpg 300w, https:\/\/nilg.ai\/wp-content\/uploads\/2023\/02\/group-small-businessmen-standing-coins-768x512.jpg 768w, https:\/\/nilg.ai\/wp-content\/uploads\/2023\/02\/group-small-businessmen-standing-coins-600x400.jpg 600w, https:\/\/nilg.ai\/wp-content\/uploads\/2023\/02\/group-small-businessmen-standing-coins.jpg 900w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/>In most markets, <strong>the industry is highly fragmented<\/strong>, with most players being individual homeowners and small investors, and just a few transact and hold a sufficient amount of properties. With limited actions, the amount of data you can collect and the profit you get from internal optimizations will be limited. So, more creative ways of monetizing AI must surge in such contexts. We talk about it in our <\/span><a href=\"https:\/\/youtu.be\/anZIzLAIHd8\"><span style=\"font-weight: 400;\">AI monetization video<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Multiple listing services have a dominant position here, since they can benefit from the scale they get through the aggregation of massive amount of data and access to end customers. So, the suit spot to run AI models in Real Estate is at MLS.<\/span><\/p>\n<h3><\/h3>\n<h3><span style=\"font-weight: 400;\">Each and every property is unique.<\/span><\/h3>\n<p><span style=\"font-weight: 400;\"><img decoding=\"async\" class=\"size-medium wp-image-2923 alignleft\" src=\"https:\/\/nilg.ai\/wp-content\/uploads\/2023\/02\/aerial-view-new-houses-bridgwater-somerset-uk-300x200.jpg\" alt=\"\" width=\"300\" height=\"200\" srcset=\"https:\/\/nilg.ai\/wp-content\/uploads\/2023\/02\/aerial-view-new-houses-bridgwater-somerset-uk-300x200.jpg 300w, https:\/\/nilg.ai\/wp-content\/uploads\/2023\/02\/aerial-view-new-houses-bridgwater-somerset-uk-768x512.jpg 768w, https:\/\/nilg.ai\/wp-content\/uploads\/2023\/02\/aerial-view-new-houses-bridgwater-somerset-uk-600x400.jpg 600w, https:\/\/nilg.ai\/wp-content\/uploads\/2023\/02\/aerial-view-new-houses-bridgwater-somerset-uk.jpg 900w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/>Each property has its own unique properties that separate it from the rest. <strong>It\u2019s difficult to quantify what makes two properties comparable at scale properly<\/strong>. You can consider putting into your model&#8217;s variables such as size, construction year, number of bedrooms, etc. However, getting street knowledge from specific markets isn\u2019t trivial. The distance from a large employer can be a critical factor in a particular neighborhood. But, in the next neighborhood, the main driver of property value is avoiding a street with massive traffic jams. At least, it isn\u2019t trivial at scale.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So, street knowledge is crucial if we want to compete with local stakeholders, and we need ways of creating relevant human-machine interactions when assessing properties.<\/span><\/p>\n<h3><\/h3>\n<h3><span style=\"font-weight: 400;\">Experiments can be expensive<\/span><\/h3>\n<p><span style=\"font-weight: 400;\"><img decoding=\"async\" class=\"size-medium wp-image-2924 alignright\" src=\"https:\/\/nilg.ai\/wp-content\/uploads\/2023\/02\/demolition-concrete-apartment-building-with-hydraulic-excavator-hydraulic-cutter-crane-making-place-new-building-300x200.jpg\" alt=\"\" width=\"300\" height=\"200\" srcset=\"https:\/\/nilg.ai\/wp-content\/uploads\/2023\/02\/demolition-concrete-apartment-building-with-hydraulic-excavator-hydraulic-cutter-crane-making-place-new-building-300x200.jpg 300w, https:\/\/nilg.ai\/wp-content\/uploads\/2023\/02\/demolition-concrete-apartment-building-with-hydraulic-excavator-hydraulic-cutter-crane-making-place-new-building-768x512.jpg 768w, https:\/\/nilg.ai\/wp-content\/uploads\/2023\/02\/demolition-concrete-apartment-building-with-hydraulic-excavator-hydraulic-cutter-crane-making-place-new-building-600x400.jpg 600w, https:\/\/nilg.ai\/wp-content\/uploads\/2023\/02\/demolition-concrete-apartment-building-with-hydraulic-excavator-hydraulic-cutter-crane-making-place-new-building.jpg 900w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/>Training AI models tend to require time and iterations. AI models produce dumb results and get better as they gain experience. <strong>Each learning iteration in Real Estate is extremely expensive<\/strong>. Letting an AI discover new ways of building a house just to realize it\u2019s suboptimal to re-train the AI isn\u2019t very cost-effective. So, we need to either learn from historical data or let AI be more of an enabler of the human process than an autonomous decision-maker.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">How to benefit from the current Real Estate landscape with AI?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Given the landscape we just depicted, there are two possible scenarios for using Artificial Intelligence in Real Estate.<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You can benefit from AI if you are a large company operating in the industry. So, you can benefit from the large-scale optimizations on any stage: building, investing or managing your Real Estate portfolio.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Alternatively, you should consider becoming a service provider for the industry, where you can serve the entire industry with an AI-based product.<\/span><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">In any of these scenarios, we can help you find and execute AI solutions that succeed in this industry.<\/span><\/p>","protected":false},"excerpt":{"rendered":"<p>While many industries have benefited from Artificial Intelligence, Real Estate is essentially a virgin territory to apply AI. This blog post will show you how you can transform Real Estate with AI, the key consumers of these solutions, and the challenges the industry faces in its adoption. Suppose you are running a Multiple Listing Service, [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":2910,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[52],"tags":[44,83,93],"class_list":["post-2907","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industry-overview","tag-ai4business","tag-artificial-intelligence","tag-real-estate"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Artificial Intelligence in Real Estate - NILG.AI<\/title>\n<meta name=\"description\" content=\"Learn how to transform the Real Estate industry with AI, discover the key consumers, and the challenges the industry faces in its adoption.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/nilg.ai\/pt\/202302\/artificial-intelligence-in-real-estate\/\" \/>\n<meta property=\"og:locale\" content=\"pt_PT\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Artificial Intelligence in Real Estate - 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