Is Ai a White or Black Knight When it Comes to Real Estate Investing

[Ashley Wilson]

Take it for what it is worth, but over the past 10+ years I have been in real estate I have noticed one major flaw in this sector - the lack of technological advancement. From the way real estate transactions are conducted, to the construction of both residential and commercial properties, to the way in which real estate businesses, like multifamily, self-storage, etc. are operated, technology was lacking no matter where you looked. Historically the real estate industry has been able to get away with the lack of technological innovation because the market just absorbed the higher expense that these antiquated processes cost. Well, that is no longer the case today.

As the market is at its breaking point with residential real estate teetering on a major housing affordability crisis and commercial real estate being slammed with operational expenses - for example rising insurance rates and tax hikes, it appears that we are nearing or potentially already in a recession. While some may argue that a recession can have some dire consequences, recessions also create opportunity. Tim Ferris said it best when he said, “A recession is very bad for publicly traded companies, but it’s the best time for startups. When you have massive layoffs, there’s more competition for available jobs, which means that an entrepreneur can hire freelancers at a lower cost.” In previous recessions those lower costs meant lower wages, however, today it means something totally different.

Enter Ai. If there is one thing that could propel real estate through this recession, it is Ai. Before you dismiss this statement as a pie-in-the-sky thought, hear me out as I break down where I see Ai emerging victorious.

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