Ryan Serhant is a real estate agent and reality TV star.
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Real estate has historically been slow to modernize, but AI is changing that. The integration of artificial intelligence will change the way buyers and sellers interact with agents, fundamentally changing the competitive dynamics of the industry.
AI is changing the focus of real estate agents’ day-to-day work as it automates tasks from creating real estate listings to conducting neighborhood analysis, reshaping real estate agents’ daily work.
Ryan Serhant, CEO of Serhant and star of the reality show Owning Manhattan, said AI is already transforming real estate into a place where agents are less about access to information and more about agents building deeper relationships. He says he is keeping it there. He predicts a shift in mindset is occurring as agents are forced to leverage AI while finding new ways to differentiate themselves in an increasingly competitive market. “If we’re all using AI and we all have the same level of expertise, who wins? It’s a hot game,” Serhant said at the CNBC Evolve AI Opportunity Summit in New York City last week. he said.
Purchasing a home is the largest investment most Americans will make in their lives, making real estate a business where agents can achieve greater success by providing a more personal touch. Serhant says a big benefit of using AI is that real estate agents have more time to provide personalized attention to their customers.
“Product in sales is no longer just a skill set,” Serhant says. It’s a focus on skill sets.
His own company, Serhant, has developed a sales automation service called “Simple” to handle the day-to-day tasks of customer relationship management, which typically consume more than 60% of an agent’s time.
While AI tools are being used to streamline lead generation, automate marketing campaigns, and provide predictive analytics to identify opportunities, they don’t replace agents’ critical role in delivering top performance. Serhant said that while AI will not virtualize relationships, it will strengthen relationships, saying it is a necessary move for real estate agents who embrace the AI revolution.
Less cumbersome access to real-time market data and sales insights could allow agents at smaller boutique firms to compete on a more equal footing with larger real estate companies. “There’s an element of trust in sales. … It’s not about who’s the biggest, it’s about who has the most power,” Serhant said.
This will also benefit homebuyers and sellers, Serhant said, increasing personalized service and expanding the selection of the right agents who are customer-focused.
The real estate industry is still in the early stages of AI adoption, and while understanding among real estate professionals is still low, there is interest. 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 by investors, developers, and corporate occupiers. However, the survey also revealed that real estate professionals have very low understanding of AI compared to other technologies.
According to Serhant, agents that understand how AI can enhance their business will have a huge opportunity to capture significant market share over the next 20 years.
No innovation is without risk. Telecommunications fraud remains a major challenge for the real estate industry and will be exacerbated by AI. The FBI reported that real estate transactions significantly increased cybercrime losses due to wire fraud in 2023. Improvements in artificial intelligence technology are making it easier for real estate scammers.
Serhant said while fraud cannot be ignored, he believes real estate, like traditional businesses such as digital listings, will adapt to the risks inherent in new technology. “Every time there’s an advance in technology, there’s going to be bigger rules in place to stop these counterfeits,” he said.
