In today’s world of rapid technological advancements, Artificial Intelligence is changing the speed, accuracy, and power of business operations. AI is a powerful set of tools that applied strategically, can maximize results, improve business efficiency, grow revenue, profits and create a customer experience that your competitors will envy.

As with many sectors, the real estate industry is beginning to discover new ways AI can be applied to increase value across the value chain for multiple stakeholders, in areas such as leasing, appraisals, property and contract management, and even realtor’s day to day operations.

Let’s look at various ways AI can benefit the real estate industry:

Save valuable time when contract abstracting

Real estate contracts - and contracts in general - are long and complicated to understand for those that aren’t experts in reviewing contracts. Real estate agents have to handle multiple contracts at a time for each listing; from leases, title documents, to deeds, and then manually summarise them in a short span of time to make it easier for their clients to understand the important details pertaining to the contract. Abstracting the accurate details from several contracts is difficult: there is a high chance for human error, it’s an ineffective use of the agent’s time, and this arduous process restricts the real estate agent from making fast, data-driven decisions with confidence.

Application of Artificial Intelligence in Real Estate — Real estate agents have to handle multiple contracts at a time

Contract abstraction can help solve this problem by providing a concise and summarized report highlighting all the key information in the contract. Abstraction simplifies the process for signees by helping them understand the key and relevant information in language they understand and in a condensed version, without all the complexity of legal language and jargon. It’s estimated that real estate companies lost an estimated 5-40% of the value on deals due to the complexity in the process, so a tool that can offer simplicity is a game changer.

Contract analysis, classification, and abstraction can be undertaken by AI through natural language processing and deep learning which captures and accesses information from these contracts. AI can scan and extract information from contracts based on keyword search of certain clauses. Error-prone manual abstraction can be avoided, it has the ability to process incredibly large volumes of data, reduce bulky-sized documents, extract important information, and time is managed efficiently with AI completing the task effectively in mere minutes. AI can improve and streamline the contract abstraction process and help you stay ahead of the competition through increased productivity that better serves your customers.

Make it easier to identify potential leads

Finding potential leads online for real estate listings can be tricky when you have no idea what the customer is seeking – and sometimes, customers themselves don’t know. This makes qualifying potential leads much harder: agents don’t know whether someone is a serious potential buyer or just window-shopping. A real estate agent’s time is valuable and having the insights as to where and whom they should prioritise their efforts is invaluable. Fortunately, AI can help identify, filter, and provide pre-qualified leads.

For example, the incorporation of AI-driven chatbots onto your website provides a point of engagement for customers and signals can be detecte