In an industry where over $23 billion is invested annually, according to Blueprint, the stakes are high for real estate professionals. As artificial intelligence (AI) becomes increasingly prevalent in the sector, the quality of your data and your confidence in it are paramount.
AI’s effectiveness is fundamentally tied to the quality and quantity of data it processes. Many organizations underestimate the challenges associated with collecting, cleaning, and maintaining the data that feeds their AI models. Without a solid data foundation, AI tools can produce unreliable results, potentially leading to incorrect financials, flawed deal modeling, and misguided market selection.
Data Confidence Tip: Before implementing any AI solution, assess your organization’s data quality. Are your internal data sources reliable? How do you ensure the accuracy of partner-submitted data? If you’re leveraging market data, inquire about the provider’s data quality assurance processes.
Many AI strategies suffer from a lack of transparency, often referred to as the “black box” problem. When users, including those implementing AI tools, don’t fully understand how algorithms arrive at their conclusions, it raises concerns about accountability, ethics, and potential biases in decision-making.
Data Confidence Tip: When evaluating AI vendors, prioritize those who can clearly explain their algorithms and methodologies. Ask for detailed information about the data sources used to train their models. Transparency builds trust, which is essential for data confidence.
While AI vendors often promise customized solutions, the reality can be disappointing. Some may offer only minor tweaks to standard products, while others might suggest building from scratch, leading to high costs and extended timelines. Excessive customization can also result in solutions that are difficult to update as your data sources, application needs, or business strategies evolve.
Data Confidence Tip: When a vendor promises customization, dig deeper. Can their data model adapt to your changing needs? If they’re proposing a bespoke solution, carefully consider the long-term implications for updates and modifications.
While AI can significantly enhance decision-making processes, it shouldn’t replace human judgment entirely. Overemphasis on automation, especially for high-stakes decisions, can lead to critical errors that machines are ill-equipped to handle.
Data Confidence Tip: Map out your business tasks and carefully consider which can be safely automated or enhanced with AI, and which require human oversight. Remember, AI should augment your decision-making, not replace it entirely.
Be wary of AI “experts” who lack specific knowledge of the real estate industry. Real estate data presents unique challenges that require specialized solutions. A general AI expert might not fully grasp the nuances of property data, market trends, and industry-specific regulations.
Data Confidence Tip: When evaluating AI partners, prioritize those with a deep understanding of real estate data complexities. Ask them to explain why real estate data is particularly challenging compared to other types of data.
By focusing on data confidence, real estate professionals can navigate the complex world of AI implementation more effectively. At Cherre, we’ve helped leading real estate companies build robust data strategies that power over $3 trillion in assets under management. Our approach emphasizes data quality, industry expertise, and transparent AI solutions that drive real value.
Ready to build data confidence and unlock the true potential of AI in your real estate operations? Schedule a demo with Cherre today and learn how we can help you validate your investment thesis, accelerate market selection, and optimize your resources through data-driven AI strategies.
Enable Trust by Enabling Visibility
In the complex world of real estate data management, being a data detective is no longer optional—it’s a necessity.
In an industry where over $23 billion is invested annually, according to Blueprint, the stakes are high for real estate professionals.
Microsoft, in partnership with OpenAI, is leading the charge, and the real estate industry is primed for AI adoption through the Microsoft Fabric, Co-Pilot, and beyond. But as we all know, garbage in, garbage out. The effectiveness of any AI system is only as good as the data it’s fed.
