Artificial intelligence, or AI, is no longer a futuristic concept; it's actively reshaping industries, and real estate is no exception. How can professionals in our field adapt and thrive amidst this rapid change? We sat down with Michael Thorne, a seasoned realtor and recognized innovator, to explore this very question.
Michael Thorne, with over 30 years of experience in real estate, has seen firsthand how technology can change the game. He compares the current AI shift to the early days of the internet, noting that the pace of change with AI will be significantly faster. "The difference between the internet and AI is the pace that it will impact our industry," he explains. While the internet's impact took about a decade to become widely felt in real estate, AI's influence is expected to be much more immediate.
He stresses that AI is not a replacement for human expertise but rather an assistant. "Artificial intelligence when we talk about generative AI... is there to assist us right now," Thorne says. However, he anticipates that by 2025, AI will evolve into agents that can perform tasks independently, moving from an assistant role to something more akin to an employee. This rapid evolution means real estate professionals need to proactively learn about AI to stay ahead.
There are many misunderstandings about AI, especially concerning its application in real estate. Thorne points out that many agents initially use AI for simple tasks like generating listing descriptions, which he calls "low-hanging fruit." However, the true potential of AI goes far beyond this. He warns against using AI to create a distance between agents and their clients, such as using a digital avatar for communication. Instead, the focus should be on using AI to handle mundane, repetitive tasks behind the scenes.
"The agents that are really going to win are going to do it by putting it behind them," Thorne advises. This means using AI to streamline operations so that agents can dedicate more quality time to their clients. As AI becomes more prevalent, Thorne believes that being more human and focusing on client care will become even more valuable.
Thorne suggests framing AI adoption into two categories: those who ignore it will lose, and those who use it to distance themselves from clients will also likely lose. The winners will be those who use AI to enhance their efficiency and client service.
He highlights a practical use case: using AI to simulate a buyer for practicing scripts and handling objections. This allows agents to refine their communication and value proposition in a low-stakes environment. "It's just a really super interesting case study for how AI can help us behind the scenes so that when we are with our clients, we're much more comfortable talking about those things," he notes.
For realtors wondering where to begin, Thorne emphasizes that you don't need to be an AI expert. The key is to articulate what you want the AI to do. "You don't need to be an expert, I just need to know what I want," he states. He encourages agents to try using AI tools like ChatGPT for a week, asking themselves if a particular task could be done faster or better with expert help. If the answer is yes, then it's a good candidate for AI assistance.
He recommends focusing AI use on tasks that would benefit from expert input, such as writing, data analysis, or coding, rather than tasks where the realtor is already the expert, like writing CMAs or responding to showing requests.
AI's influence extends beyond individual agents. For broker owners, AI can be instrumental in developing training programs, policy manuals, and analyzing business data to uncover insights that might otherwise be missed. For consumers, AI can improve their online experience, search capabilities, and communication with real estate professionals, provided it's integrated thoughtfully.
Thorne will be sharing more insights and practical examples at the upcoming PacificWest conference, focusing on how to craft effective prompts and integrate AI into daily workflows. He stresses that the skill of prompt engineering is currently vital for getting unique and valuable outputs from AI, ensuring that the content reflects the agent's personal brand and voice.