Real Estate AI Should Enhance, Not Replace, Client Connections

Thad Wong, co-founder and co-CEO of @properties Christie’s International Real Estate, a subsidiary of Compass International Holdings, has cautioned against the use of artificial intelligence in real estate if it aims to replace the personal connection between agents and clients. Wong, who has a long-standing interest in technology and previously developed an AI platform for @properties, emphasized that AI implementations should serve to enhance, rather than substitute, the agent-client relationship. He articulated this stance during HousingWire’s AI Summit on Tuesday afternoon, stating that the most valuable aspects of an agent to a customer, which often lead to referrals, are either the agent's unique qualities and communication style or the personal connection they cultivate with their clientele.

Wong recounted an early exploration by his team into using AI to replace direct conversations between agents and clients. The initial concept involved AI engaging in a dialogue with a customer, with a handover to the agent only at a substantive point. However, Wong described this approach as a "really bad idea" and an "unwise use of technology," despite its value as a learning experience. This exploration led to a crucial realization: the most effective application of AI in real estate lies in automating "unseen and repeated behaviors" that occur in the background of agent operations. By offloading these routine tasks, AI can free up agents' time, enabling them to dedicate more of it to direct interaction and engagement with consumers.

The core principle derived from this experience, according to Wong, is that "the minute you start to replace the personal connection, you lose." Conversely, "the minute you are using these other tools to enhance that connection and make the agent more valuable, you win." He expressed concern over instances where agents might use AI-generated versions of themselves for communication, likening it to "the kiss of death." Wong argued that such practices diminish an agent's control over their identity, thereby devaluing the client relationship. He highlighted a specific application where AI has been successfully employed to help agents re-establish contact with past clients, a common challenge in the industry. This strategic use of AI aims to strengthen existing relationships and foster new opportunities by leveraging technology to support, not supplant, the human element that defines successful real estate brokerage.