Can Generative AI save the present Proptech Industry?
Until recently, if you wanted to raise funding or thought to be in front of the tech-curve apparently you needed to be knee deep in Web 3.0, Blockchain or Crypto, as all were hot favourites to power the digitisation of the real estate industry. It was proposed that a new iteration of the web could unshackle previous business models and trade could take place in a frictionless and safe environment. But as we hit midway through 2024 and we look around this new dawn has yet to happen and many of the promising stable of Proptechs in all verticals seem to be stalling and appetite and belief seems to be ebbing away.
What definitely is a huge new force ‘trending’ in Property technology (and the larger technology space) is Generative Artificial Intelligence, but the big question is whether, as the industry grapples with retro-fitting this new ‘tool,’ will it prove to be just a passing phantom with little substance or a solid and sustainable strategy that can power and build back value into companies that need a pivot that leads them to the finish line before the cash runs out and so do the lights.
What’s all the noise about
For those who have been living on the moon and have not heard about it Gen AI or Generative AI, is a subset of artificial intelligence that focuses on creating content and data that didn’t previously exist, offers a multitude of applications and benefits to the Proptech industry. Though not an exhaustive list here’s where it’s being used and its potential impact.
Gen AI is utilised in: 1. Product development and enhancement. 2. Innovation, it can generate new ideas for products or improve existing ones by analysing trends, customer feedback, and market needs. 3. Design: In fields like architecture, AI can propose novel design options, speeding up the creative process and introducing new styles and concepts. 4. Content Creation 5. Media and Entertainment: Gen AI can create written and other forms of content, changing how media is produced and consumed.
6. Personalized Content: AI can tailor content to individual user preferences, improving engagement and user experience. 7. Software Development. 8. Code Generation: Tools like GitHub Copilot use AI to suggest code snippets and entire functions, increasing developer productivity and potentially reducing bugs. 9. Testing and Debugging: AI can generate test cases and even identify potential bugs in software, improving quality and speed of development. 10. Data Augmentation and Simulation.
Gen AI is further utilised in: 11. Training Data: Gen AI can create synthetic data sets for training other AI models, especially useful where data is sensitive or scarce. 12. Simulation: In fields like autonomous vehicles or drug discovery, AI can simulate environments and scenarios, speeding up research and development. 13. Customer Experience and Engagement. 14. Chatbots and Virtual Assistants: it generates human-like responses and interactions, providing customer support and personal assistance.
15. Personalization: AI can generate personalized recommendations and experiences for users. 16. Marketing and Advertising, Ad Creation: AI can generate creative and targeted content for ads, adjusting to market responses in real-time. 17. Market Analysis: it can predict market trends and customer preferences, helping companies to create more effective marketing strategies. 18. Process Automation: it can automate routine tasks, freeing up human workers for more complex and creative tasks. 19. Optimization: AI can optimize logistics, energy use, and other operational aspects, saving costs and improving sustainability.
Challenges and considerations
While generative AI offers immense possibilities, it also comes with challenges, including ethical considerations around data use and privacy, the potential for misuse in creating deepfakes or spreading misinformation, and the impact on employment in certain sectors. Ensuring responsible use and governance of AI is crucial as its role in technology and society continues to grow.
What is certain
Generative AI is a powerful tool that’s transforming the Proptech industry, driving innovation, efficiency, and personalized experiences. As the technology continues to evolve, its applications and influence are expected to grow, opening new possibilities and shaping the future of how we interact with technology and data. It also operates on a second level, in my day job as consultant and adviser to Proptech founders, I know that typically a start-up can go from MVP to exit in six years often 10, but with Gen AI, it is conceivable that a lot of that time can now be condensed, so the need for a shorter runway and also lower costs to get that perfect Saas model worthy of a multi-trillion dollar exit.
Andrew Stanton’s PROPTECH-X ‘Proptech & Property News’ in association with Estate Agent Networking & News Now publications. #proptech #property #realestate #digitaltransformation #startups
Andrew Stanton Founder & Editor of 'PROPTECH-X' where his insights, connections, analysis and commentary on proptech and real estate are based on writing 1.3M words annually. Plus meeting 1,000 Proptech founders, critiquing 400 decks and having had 130 clients as CEO of 'PROPTECH-PR', a consultancy for Proptech founders seeking growth and exit strategies. He also acts as an advisory for major global real estate companies on sales, acquisitions, market positioning & operations. With 100K followers & readers, he is the 'Proptech Realestate Influencer.'
