5. Mortgages
Artificial intelligence is also gaining increasing adoption in financing, including mortgages. In underwriting, AI is used to analyze borrower information, including credit scores, income, and employment history, to evaluate the borrower's risk profile and find the best rate to charge.
AI tools help detect and prevent fraud and can automate loan servicing tasks, such as payment processing and customer communication. Some mortgage lenders, such as Rocket Companies (RKT -2.38%), use AI to deliver near-instant decisions on mortgage applications.
For instance, the company offers mortgage approvals in as little as eight minutes. In April 2024, it launched Rocket Logic, an AI-driven platform designed to simplify the mortgage application process for homebuyers and deliver approvals faster.
6. Risk assessment and fraud detection
Risk assessment and fraud detection are other ways AI can benefit real estate agents and potential sellers. Machine learning algorithms can analyze large amounts of data to find suspicious patterns and potentially fraudulent behavior.
In this sense, cybersecurity plays a role in AI and real estate, and large landlords use platforms like CrowdStrike's (CRWD +4.57%) Falcon endpoint security program for threat detection. Commercial real estate services firm Cushman & Wakefield relies on the Crowdstrike platform for protection from fraud and other cybersecurity challenges.
7. Automated property valuation
AI is also being used for automated property valuations. These automated valuation models utilize algorithms and datasets to determine a property's estimated value, using comparable sales, tax assessments, other listings, and records to determine a value.
Automated valuations offer some advantages over traditional methods, including speed, scalability, data-driven analysis, and real-time valuations. While they're not designed to be a full replacement for a comparative market analysis (CMA), they are a good starting point for valuation estimates and gathering information.
8. Lead generation
Lead generation is key to being successful in real estate, and AI can play in a role here too. AI chatbots and assistants can help real estate agents find new clients, handle inquiries, and qualify buyers.
It can also automate parts of the customer search process, including calling leads and transferring calls in real time. Chatbots can also respond instantly to customer inquiries and collect information from prospective buyers.
9. Personalized property recommendations
Finally, AI is being used for personalized property recommendations. Instead of just analyzing properties, AI can review customer data, including purchasing history, browsing patterns, and preferences, such as size, budget, and amenities, to make recommendations for customers.
Much like automated property valuations, this technology is designed to complement a human real estate agent, who can work with nuances and desires beyond a typical AI's capabilities.
Related investing topics
