AI Within Reach

October 21, 2024

Real Estate Technology, Artificial Intelligence (AI) in Real Estate

If you’re feeling like a novice on how to use artificial intelligence, follow the lead of these associations and start with member engagement.

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If artificial intelligence has existed since 1956, why is it on everyone’s lips today, and how is it affecting associations, MLSs and real estate executives?

Today, using AI has become pervasive among America’s leading real estate brokerages, with 75% already using the technology and brokerage executives noting that almost 80% of their agents are using AI tools, according to the 2024 Delta Media Real Estate Leadership Survey earlier this year.

Meanwhile, some associations and MLSs have also quickly adopted and deployed AI, while others are still developing their AI strategies.

“AI adoption by associations and MLSs has been slow but steadily increasing, as these organizations recognize the potential of AI technologies to enhance their operations, provide better services and support their members more effectively,” says Alex Lange, vice president, strategy and innovation, at the National Association of REALTORS®.

Associations and MLSs already using AI in a big way are realizing that potential, as staff and members report better efficiencies, improved compliance and other benefits.

AI Powerhouses

For Jeremy Crawford, CEO and president of FMLS in Atlanta, AI has become a primary tool he uses to improve his organization and business workflow.

Serving more than 47,000 subscribers, FMLS leverages AI for managing compliance, maintaining internal documentation, improving operational efficiency, enhancing training and education services, improving member satisfaction, refining the tools it provides agents to increase productivity, and helping deliver a better client journey, especially with home search.

“AI is crucial in ensuring compliance with listing data standards,” Crawford says. “Our goal is to have the most accurate data in the MLS industry, and these AI-driven tools— such as Restb.ai integrated with CoreLogic’s Listing Data Checker—assist in compliance checks through algorithms that verify things like members who are following our rules and regulations, image quality being uploaded for listings, and general accuracy around listing and sold property data.”

For example, watermarks and trademarks—such as logoed T-shirts or brands on signs— should not be visible in images. He added, “We have some custom language scanning built up into AI as well, looking for keywords and phrases in remarks fields that are not allowed.”

What drives Crawford’s penchant as an early AI adopter? Results.

We must work smarter so we can dedicate our time to continuing to support our members. We accomplish that by using every resource.

“AI contributes to significant time savings and operational efficiency by automating repetitive tasks and improving the accuracy of data-handling processes,” he says. “This allows our team to focus more on strategic initiatives and providing high-quality service to our members.”

Crawford’s enthusiasm for AI was amplified by personal experience. “Many of us use AI on a personal basis and don’t even realize we are using it,” he says.

For example, in 2018, Crawford traveled to Spain for the LeadingRE Global Symposium, which was held in Barcelona. A translator on his smartphone saved the day.

“I found out that the menu and the local language in general was not Spanish but instead Catalan,” he says, and the translator “greatly changed my experience in traveling in the Catalan regions of Spain.”

Miami Association of REALTORS® is one major association embracing AI throughout its organization. As the largest local board in the U.S., with 60,000 members, Miami uses AI to offer personalized training, automate administrative tasks, streamline market analysis and enhance services.

For example, “our AI-enabled phone system allows us to quickly respond to our members and includes texting capabilities, ensuring exceptional member service,” says Connie Nieto, vice president of technology services.

“AI also allows us to continuously review and improve our customer service levels with our Miami professionals. Our selection of AI products and classes inspires our members to achieve optimal performance,” she adds.

Lisa Marshall, CEO of the Central Wisconsin Board of REALTORS®, sees multiple applications for AI. For example, a recently deployed AI-powered compliance tool is helping her organization audit photos within its MLS. “This will not only help us improve our compliance but ensure that fair housing guidelines are not being missed,” Marshall says.

She also points out that the savings AI offers are significant. “As a medium-sized MLS and board, it can be taxing on staff to check every photo, especially when a listing has 60 photos,” she says. “We are beyond ready for a tool that will [free up] hours of work.”

That’s a key benefit. “AI is a necessary tool that all associations have to welcome because the days of manual work have to evolve,” she says. “We must work smarter so we can dedicate our time to continuing to support our members. We accomplish that by using every resource.”

She sees AI helping in other ways, including assisting Central Wisconsin in reimagining new member onboarding, continuing education and compliance. “AI will enrich not only our community but all associations,” she says.

AI can also help associations put together effective messaging for advocacy work. For example, Elizabeth Edwards Martin, government affairs director at the Greater Greenville Association of REALTORS®, is an avid user of Realtors Property Resource® market trends reports and housing data to craft informational pieces for elected officials.

Now, with RPR’s AI Script- Writer, she can turn that data into informational video content, another way to connect with and educate legislators, as the RPR reports contain “really great information for us to share with elected officials for buy-in and a seat at the table.”

As associations and MLSs continue to adopt new AI tools, Florida Realtors®, the largest state association in the U.S., is helping to bolster AI use through education. AI topics have been a cornerstone of its member educational efforts through its Tech Helpline (techhelpline.com). The association’s Tech Helpline analysts can assist clients by answering AI questions and troubleshooting AI-related tech problems, among other issues.

Tech Helpline has been an early and prolific producer of practical AI posts for agents and brokers on its searchable blog site. Clients—17 state and 65 local associations and organizations—can repost all Tech Helpline content, helping association members nationwide learn more about this quickly evolving topic.

What Exactly Is AI?

Most of us are using artificial intelligence anytime we ask Alexa or Siri to help us manage our calendars, when streaming services recommend movies or shows, or when we adjust lighting or room temperature with smart devices.

Think of AI as the “brain” for machines. Just like we humans use our brains to learn, solve problems and make decisions, AI lets computers do similar tasks. Instead of being programmed to follow specific instructions, AI enables machines to learn from experience, adapt to new information and perform tasks that usually require human intelligence.

Importantly, AI is a human creation designed to enhance our abilities and make our lives easier.

Hacking Member Engagement

AI efforts at associations are “focused mostly on member engagement,” says NAR’s Lange, and they include chatbots and virtual assistants to provide instant responses to common queries, streamline customer service and support members 24/7. They’re also using AI to analyze member behavior, preferences and feedback to improve engagement strategies and retention rates, as well as for content creation to provide more personalized content for members, such as news, articles, market reports, and educational resources based on their specific interests and needs.

“AI chatbots and virtual assistants are changing the game for member engagment, offering quick responses and support anytime,” Lange says. “It’s helping associations improve how they interact with members and streamline their processes."

As associations continue to explore AI, Lange notes they will discover “personalization opportunities and the ability to predict member needs. This means they can offer more tailored services and keep members more engaged.”

Being member-focused has been the key to successful AI rollouts for associations.

Another example is the Houston Association of REALTORS®, which serves 49,000 members.

HAR Chief Technology Officer Taqi Rizvi says that the association is integrating AI across its platform to support listing agents in writing property descriptions, tagging photos and creating audio narrations about properties.

“AI also empowers HAR members with tools to create their agent profile, respond to leads and manage marketing efforts,” Rizvi says. “This integration is designed to enhance the consumer search experience on har.com as well as streamline agents’ workflows.”

AI is the new frontier, and associations should embrace it.

Guardrails and Skepticism

However, using proven AI tools is crucial for association executives, says FMLS’ Crawford.

“As we expand our AI capabilities, we prioritize implementing robust AI guardrails,” he says. By doing so, MLSs can mitigate risks, build trust and responsibly maximize the benefits of AI technologies. This proactive approach protects stakeholders and ensures sustainable and ethical AI deployment in real estate operations.

Crawford notes that guardrails must address data security, maintain compliance with privacy regulations, and continuously monitor AI systems for potential risks or biases. “Implementing AI guardrails is crucial for any organization as they adopt AI technologies into their operations,” he says. (See “Crafting an AI Use Policy”)

The MLS rule is another challenge associations might face with AI, says Ruben Gonzales, CEO of Imperial County Association of REALTORS®, El Centro, Calif. “[It] states that the photos in the MLS must be a ‘true standard’ of the actual property. This could be challenging at times ... when adding or altering images to portray a more enticing view to the public.

Leading AI experts also recommend healthy skepticism when evaluating any AI-related tool, and several association and MLS executives say this is one area where they take their time to get AI right for their organizations.

At the same time, adds NAR’s Lange, we can’t forget that AI can also be used to protect associations. For example, in areas such as fraud prevention, AI can “detect unusual patterns or activities in MLS data, helping to identify and prevent fraudulent listings, transactions and other threats.”

What’s Next for Associations and AI

Looking to the future, Central Wisconsin’s Marshall sees the growing importance of AI, particularly in helping to navigate changing practices in residential real estate. “Working with AI will be a must in our space,” she says, adding, “Enforcement of the settlement sits right on our shoulders, and we need the best technology to do it.”

FMLS’ Crawford offers this take: “AI is poised to continue transforming our MLS operations by automating tasks, improving data accuracy, enhancing training programs and ultimately delivering greater value to our members.”

Miami’s Nieto says, “AI is the new frontier, and associations should embrace it.”

She points to many ways associations can leverage AI to “support their members in an impactful way,” including personalized training and tailored learning paths, market analysis and insight, administrative efficiency, enhanced member service, fraud detection, security and risk analysis.

“By integrating these AI capabilities, AEs can enhance the value they provide their members, driving better outcomes in education, efficiency, member service and market performance,” she says. “That makes it an association and member win.”

Author Kevin Hawkins is co-creator and editor of real estate’s first AI newsletter—REAL AI—and one of the industry’s most prolific content creators, working with leading real estate tech firms, associations, MLS industry firms, the top-producing real estate agent in the U.S. and others.

AI Is Not New

Understanding the unprecedented ascent of artificial intelligence in real estate begins with its origin. AI isn’t new: It has been a part of human imagination and scientific venture for over a century.

In popular culture, the word “robot” was introduced in the 1920 science fiction play R.U.R. (Rossum’s Universal Robots) by Karel Čapek. The play depicts a world where humanlike mechanical workers rebel against their creators. The 1927 silent film Metropolis features a humanoid robot and explores the relationship between man and machine.

The term “artificial intelligence” was coined in 1956 at a Dartmouth conference, marking the formal beginning of AI in America’s lexicon. Early AI pioneers such as Alan Turing and John McCarthy envisioned machines that could mimic human thought processes

Throughout the 1960s and 1970s, AI research saw significant advancements, primarily in problem-solving and symbolic reasoning. The 1980s introduced the era of expert systems, which used AI to mimic the decision-making abilities of human experts. However, these systems were severely limited by the computational power and data availability of the time.

The 1990s and early 2000s witnessed a remarkable shift toward machine learning, where algorithms could improve their performance over time with exposure to more data. Data is the fuel that AI depends upon for its creation and iteration.

The 2000s also saw the rise of neural networks and the initial successes in natural language processing and image recognition, driven by massive increases in computational power, a substantial increase in accessible data driven by the growth of the internet, and a collapse in the costs to develop AI.

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