Szumilo, Nikodem;
Wiegelmann, Thomas;
(2024)
Real Estate Insights AI: real estate’s new roommate – the good, the bad and the algorithmic.
Journal of Property Investment & Finance
10.1108/JPIF-01-2024-0001.
(In press).
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Abstract
Purpose: This paper aims to provide a comprehensive analysis of the transformative impact of Artificial Intelligence (AI) and Large Language Models (LLMs), such as GPT-4, on the real estate industry. It explores how these technologies are reshaping various aspects of the sector, from market analysis and valuation to customer interactions and evaluates the balance between technological efficiency and the preservation of human elements in business. // Design/methodology/approach: The study is based on an analysis of the strengths and weaknesses of AI as a technology in applications for real estate. It uses this framework to assess the potential of this technology in different use cases. This is supplemented by an emerging literature on the topic, practical insights and industry expert opinions to provide a balanced perspective on the subject. // Findings: The paper reveals that AI and LLMs offer significant benefits in real estate, including enhanced data-driven decision-making, predictive analytics and operational efficiency. However, it also uncovers critical challenges, such as potential biases in AI algorithms and the risk of depersonalising customer interactions. // Practical implications: The paper advocates for a balanced approach to adopting AI, emphasising the importance of understanding its strengths and limitations while ensuring ethical usage in the diverse and complex landscape of real estate. // Originality/value: This work stands out for its balanced examination of both the advantages and limitations of AI in real estate. It introduces the novel concept of the “jagged technological frontier” in real estate, providing a unique framework for understanding the interplay between AI and human expertise in the industry.
| Type: | Article |
|---|---|
| Title: | Real Estate Insights AI: real estate’s new roommate – the good, the bad and the algorithmic |
| Open access status: | An open access version is available from UCL Discovery |
| DOI: | 10.1108/JPIF-01-2024-0001 |
| Publisher version: | http://dx.doi.org/10.1108/jpif-01-2024-0001 |
| Language: | English |
| Additional information: | This version is the author accepted manuscript. For information on re-use, please refer to the publisher’s terms and conditions. |
| Keywords: | Generative AI, AI analysis, AI in real estate, AI use cases, Jaggered Frontier, Technology in real estate |
| UCL classification: | UCL UCL > Provost and Vice Provost Offices > UCL BEAMS UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of the Built Environment |
| URI: | https://discovery.ucl.ac.uk/id/eprint/10190161 |
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