People in almost every profession use predictive AI tools every day, whether they know it or not. Predictive analytics is a function of artificial intelligence that uses data mining, machine learning and predictive modeling to review known facts and past events. Predictive AI then uses that data to make educated predictions about future events or other unknowns. Over time, these predictive tools get better and better.
Sales professionals use customer lifecycle stages in CRM systems. Doctors use AI to determine when patients are at risk of certain diseases. Retailers make product recommendations based on past purchases or known shopping behaviors. Banks use fraud detection to determine irregular account activity to protect customers.
As the commercial real estate industry embraces more and more technology, brokers and other CRE professionals are beginning to use predictive AI too.
What’s happening now in predictive CRE?
Digsy.AI is tool created by former Lee & Associates broker Andrew Bermudez, who describes the technology as an “automated assistant” that uses predictive AI to “help sales teams close more deals.” The tool makes it easy for brokers to identify best practices in the sales process––like how soon to meet with a prospect, the best timeframe to do a property tour and when to submit a proposal–– so they can improve their methods and win even more business.
And another CRE tool, SiteZeus, uses a blend of machine learning, artificial intelligence and client data to generate better location intelligence for its customers. With SiteZeus, retail brands, brokers, landlords and developers can all more effectively interpret their data and mitigate risk as they make business and location decisions with an eye toward the future.
What’s the future potential of predictive CRE?
Predictive CRE tools like Digsy.AI and SiteZeus are already in use, but highly sophisticated predictive AI tools are not yet readily available to many brokerages, especially smaller ones. However, like all technology, over time, these tools will be mass-produced and will become less expensive and more accessible to all brokers.
Once every broker has access to better predictive analytics, the game will completely change and become more competitive than ever. Tasks that will get even easier for brokers include:
- Indicating who will soon be interested in a new property so you can start reaching out and marketing to them earlier in their decision process
- Seeing the future demographics of a neighborhood and using them to ensure smart investment recommendations to clients
Once these changes take hold, technology will manage significant portions of your job for you. CRE professionals like you will need to rely more heavily on their personal connections and expert advice to stack up against competition as the operational playing field is leveled by AI, but on the whole, that’s a good thing. As your work becomes more efficient, you’ll be able to spend the bulk of your time interacting with clients and building relationships.
To learn more about the future of AI, download our resource: “Demystifying the future of artificial intelligence.”