As artificial intelligence tools, notably ChatGPT, become increasingly prevalent in the real estate sector, industry leaders warn of potential risks and urge preparedness.
Amidst the focus on commission lawsuits, Michael Minard, CEO and owner of Delta Media Group, highlights a more significant disruptor looming over the real estate landscape: the rapid integration of artificial intelligence (AI) tools.
In an interview with Real Estate News, Minard remarked that while the industry grapples with concerns around dual agency and legal battles, AI poses a greater threat.
Delta Media Group, an established provider of real estate marketing and technology solutions, has been deeply entrenched in the AI realm since 2018. According to Minard, AI adoption has become essential for survival in today’s real estate environment.
“AI adoption is no longer an option; it’s a prerequisite.”
Michael Minard, CEO and owner of Delta Media Group
He underlining the findings from Delta Media Group’s 2024 Real Estate Leadership survey. The survey revealed that 75% of leading brokerages are actively employing AI technology, with nearly 80% of agents leveraging AI tools.
Among the various applications, AI’s role in crafting property descriptions emerged as the most prevalent (82%), followed by content generation for blogs, emails, and social media platforms. Despite the high adoption rate, Minard expressed surprise that it wasn’t universal.
Minard urged realtors, team leaders, and brokerage owners to fully embrace AI. He emphasized the clear trajectory of the industry and warned that those who fail to adapt risk being left behind. However, Minard also acknowledged legitimate concerns surrounding AI’s inherent biases and potential risks. He cautioned that AI algorithms carry inherent biases and emphasized the need for the industry to grapple with the implications. Minard highlighted a lack of preparedness within the industry to address the realities of AI.
Notably, the predominant AI tool in use, ChatGPT, raises red flags due to its general-purpose nature, lacking tailored adherence to real estate regulations.
Minard warned about the regulatory risks posed to brokerages by using generic AI platforms like ChatGPT. He emphasized that steps are being taken within their platform to mitigate these risks, but stressed the importance of industry-wide awareness.
Looking ahead, Minard foresees AI as a catalyst for industry consolidation, with adept AI users gaining a competitive edge. Moreover, he emphasizes the need for proactive discussions on AI’s disruptive potential and its implications for the future landscape of real estate.
Minard noted that AI’s maturity demands attention, highlighting that its integration into real estate operations raises complex ethical and practical questions. He emphasized the importance for industry stakeholders to engage in forward-looking dialogues to navigate AI’s transformative impact effectively.
