AI Not Expected to Ever Replace Real Estate Agents, New Study Says

LAS VEGAS, NV – Artificial Intelligence (AI) is in the middle of a huge boom right now, with the controversial technology expanding its abilities by leaps and bounds on a seemingly daily basis, leading to very real concerns that it could take jobs away from hardworking human beings.

Real estate is one field that has its workers sweating about the perils that AI presents to their livelihoods; already, the tech is being used to automate some of the more mundane tasks realtors have to contend with.

AI is being used generate and automate listings, anticipate buyer and seller preferences, and – with the vast amounts of data that algorithms can analyze – offer personalized property suggestions for target demographics, based specific individual preferences. Plus, the tech enables AI-driven chatbots to offer 24/7 availability to engage with buyers at all hours of the day or night, providing help and engagement in order to help retain interest.

But as for the idea that real estate agents themselves could eventually be replaced, a new Microsoft study says that isn’t likely to ever happen. This is because while AI could potentially tackle aspects of customer service and sales, it could never handle the uniquely-human, “emotional” side of property transactions, as many buyers and sellers are looking for a “trusted advisor” to guide them through the process.

The study analyzed 200,000 conversations that users of Copilot – Microsoft’s generative AI-driven chatbot, included in the company’s Windows operating systems and Bing internet browser – to see where the tech’s abilities stood out, and where they came up short.

Careers that involved gathering and explaining information – such as journalism, translation, customer service, telemarketing, travel agents, and sales – appeared to show the highest risk of AI takeover.

However, careers that require a human to be physically present – such as nursing, painting, embalming, machine operation and repair – showed the least risk.

But while the real estate industry wasn’t specially singled out as being either safe or endangered from the effects of AI, the study noted that the tech scored poorly in terms of emotional nuance and earning trust, aspects that are vital for realtors who are helping their clients through what is likely the most expensive and stressful decision of their lives.

As mentioned above, AI is proving to be an effective tool to assist real estate agents in their duties, but “when the AI tries to directly provide support or advice, people are less satisfied,” the report found, solidifying the fact that – despite the latest tech advancement in the field – realtors will always be needed when it comes to the selling and buying of properties.

Shelter Realty Property Management specializes in the areas of  Henderson, Las Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.