T
he real estate industry is undergoing a significant transformation due to the integration of artificial intelligence (AI). This shift is altering how buyers and sellers interact with agents, fundamentally changing competitive dynamics. AI is automating tasks such as generating property listings and conducting neighborhood analyses, freeing up agents to focus on building deeper relationships with clients.

    Ryan Serhant, CEO of Serhant and reality TV star, believes that AI is making real estate less about access to information and more about the agent's ability to provide personalized attention. He predicts a mindset shift as agents leverage AI while finding new ways to differentiate themselves in an increasingly competitive market. "The game of attention" will be key, with agents competing for clients' attention.

    Buying a home is often the largest investment Americans make, making real estate a business where success relies on personal touch. Serhant's company has developed a service called "Simple" to automate daily tasks, allowing agents to focus on personalized services. AI tools are being used to streamline lead generation and provide predictive analytics, but they won't replace the critical role of the agent in providing top performance.

    The use of AI may level the playing field for smaller boutique firms, making it easier for them to compete with larger corporations. Serhant believes that trust is a key factor in sales, and AI can empower agents to build stronger relationships with clients. This benefits both homebuyers and sellers, who will have access to a wider selection of suitable agents offering enhanced personalized services.

    While the real estate industry is still in its early stages of adopting AI, interest is growing. According to JLL Technologies' 2023 Global Real Estate Technology Survey, generative AI was ranked among the top three technologies expected to have the greatest impact on real estate over the next three years. However, understanding of AI remains low among real estate professionals.

    Serhant believes that agents who understand how AI can empower their business will have significant opportunities over the next 20 years to take market share. While there are risks associated with AI, such as wire fraud, Serhant is confident that the industry will adapt and implement new rules to mitigate these threats.