AI Is About to Change the Homebuilding Process, from Start to Finish

In the realm of real estate, Compass has made a remarkable investment of over $1 billion in cutting-edge technology to empower its extensive network of nearly 30,000 agents. This strategic move is designed to streamline the entire process from initial client contact to closing deals, all within a single tech platform.

Rory Golod, Compass’s President of Growth and Communications, emphasizes their mission to facilitate agent growth, increase earnings, save time, and enhance client experiences. Among Compass’s notable technological advancements is “Likely to Sell,” an AI tool that predicts prospective client leads’ readiness to sell their homes, leading to an impressive 8% conversion rate within 12 months of its launch in 2020.

Additionally, Compass AI, a chatbot tool, assists agents in crafting property listings, marketing content, and agent profiles efficiently. These innovations aim to optimize agent outreach by targeting individuals with the highest transaction potential, leveraging the estimated $180 billion value attributed to generative AI advancements according to McKinsey.

“I would say, historically, real estate has always been a bit of a laggard, in terms of use of AI,” says Alex Wolkomir, a partner at McKinsey. 

Wolkomir says commercial real estate is further along than residential when it comes to AI adoption. The top challenge he thinks the industry faces is making sure members of its workforce—construction workers, real estate agents, designers—are properly trained and understand the capabilities of the AI tools they are given. He is encouraged by some forward momentum in the industry’s AI journey over the past five years.

“I think a lot of the [generative] AI use cases are kind of opening up new areas that are very valuable to real estate,” says Wolkomir.

Startups like Higharc are revolutionizing home construction with automation platforms, attracting substantial investments and partnerships from industry giants like Home Depot and Schneider Electric. Higharc’s CEO, Marc Minor, highlights the potential of data-driven designs to streamline construction processes and improve affordability.

Moreover, Prologis Ventures’ investments in AI-enabled startups such as TestFit demonstrate the industry’s shift towards data-driven decision-making. These AI tools empower real estate professionals to analyze complex factors like zoning regulations, environmental conditions, and logistics, facilitating informed decisions and optimizing project feasibility.

Innovations like Augmenta’s automation of electrical system designs further illustrate AI’s transformative impact on preconstruction phases, enabling detailed planning, cost control, and efficient project execution.

The convergence of AI and technology investments in real estate signifies a paradigm shift towards data-driven strategies, efficiency, and enhanced customer experiences, paving the way for a dynamic and competitive industry landscape.

Source: Fortune.com