Artificial Intelligence and Real Estate in 2023

Real estate mediation had not yet recovered from the threats coming from fintech companies and others (such as Zillow and Redfin), which aim to "uberize" this activity, and suddenly it is faced with a new challenge, whose impact and consequences are still difficult to determine. to anticipate.

I could start this article by addressing the advantages that Artificial Intelligence will bring to the real estate sector. However, I feel like "going against the grain" and starting with the features of ChatGPT that I least appreciate:

1 - ChatGPT has no name of people. I ask: " What's your name? " Answer: " ChatGPT ". I don't know of any intelligent being on Earth that doesn't have a name. Name of people, understand. A simple name would suffice instead of ChatGPT, Bard or Lambda. And why not Elsa? " Oh Elsa, help me! ", " Oh Elsa, recommend me an owner who needs to sell his house. ", " Oh Elsa, do you know of any house for rent, in the Oeiras area, under €1000? ". Because neither ChatGPT accepts to be called Elsa, nor do I like the answers it gives to these questions;)

2- ChatGPT has no doubts. Like Sebastião (this name would also serve) ChatGPT knows everything, everything, everything, has no doubts and is never wrong. ChatGPT manages to be so assertive, confident, and persuasive in its responses that you'd swear it's always right, even when it makes basic mistakes!I ask him a question and he consults his vast memory chips, processes, shreds and pours out his "truth" character by character, without hesitation or doubts and without a little "hold on, let me think about it..." or a "I'm not quite sure...". Even when the answer seems like a disjointed set of ideas and themes, it articulates. I'm always suspicious of those who know everything and have no doubts;)

2- ChatGPT never compromises. I ask him : " Where did this answer come from? Where did you read it? Who told you so? " Answer: " I am a language model developed by OpenAI and I do not receive information directly from a specific person. Rather, my knowledge is derived from large amounts of text and data available on the internet, books and other reliable sources ". Oh... because I'm an Artificial Intelligence software and I don't reveal the sources... bullshit! He's afraid I'll sue him if he raises false testimonies:)

Well, these are the 3 characteristics that disqualify him from joining the Top Consultants group :) A trusted Real Estate Consultant has a name and a face, has doubts and shares them with his clients, is committed and assumes responsibility for his errors . I have said!

Jokes aside, ChatGPT represents the tip of an iceberg that has long been preparing to emerge. Around the world, major private investments in the last decade have focused on Artificial Intelligence (AI) and Big Data. These two areas of research and development have attracted astronomical amounts of money and human resources, in search of the "Holy Grail" of business: replacing human beings in certain tasks, increasing productivity and improving the service provided. However, the main objective, albeit hidden, is evidently to increase the profits of large companies and corporations that invest in these two areas.

And what will be the future of real estate activity? Will we all soon be replaced by artificial "bots", "chats" and "daemons"? I do not think so. Above all, " this is a people-to-people business ". As Massimo Forte, an essential reference in real estate mediation in Portugal, wrote:

“…in the last 20 years this sector has seen the transition from a business based purely on real estate to one that is essentially and totally focused on people . More and more, Real Estate Mediation is an activity where the connection and relationship with customers prevails, and not just a portfolio of properties. Anyone who hasn't realized this will certainly be facing great difficulties in attracting and closing sales.

What are the most important Artificial Intelligence tools in 2023?

Forget Siri and Alexa, the rules of the game have changed! A new star in the Artificial Intelligence landscape has been born, called ChatGPT . This software is part of a growing trend in the research and development of artificial intelligence, aiming to create increasingly advanced language and automation models. More similar tools are announced soon and others are already active, namely Google Bard, Einstein GPT from the powerful software company Salesforce (based on a proprietary system and ChatGPT itself), IBM Watson Assistant, etc. etc.

The race towards the golden world of neural networks and machine learning is on, hold on!

In addition to Natural Language Chats, new applications based on these tools are under development, with the aim of adapting them to different business models and thus redesigning the professional landscape of many activities. I highlight the most notable ones: ChatGPT and Google Bard AI .

ChatGPT

The company Open AI, based in Silicon Valley, USA, launched ChatGPT in June 2020 and made its official release in November 2022. This web application is based on an artificial intelligence model, offering a wide range of services, from writing poetry, journal articles and books to developing programming code and much more. It is probably the most powerful and unpredictable technology of its generation!

Sam Altman, the CEO of OpenAI, established a multimillion-dollar agreement with Microsoft for the next few years, aiming at the integration of technology in various services of the multinational giant, with special emphasis on Bing, its search tool. The pace of growth of ChatGPT is impressive, already having tens of millions of users around the world, making it the application with the fastest adoption in the history of the internet.This tool attracted 57 million users in December alone and, according to various sources, the number of users registered in January must have already exceeded 100 million.

Nothing better than a presentation made by the words of "himself":

ChatGPT is a large artificial language model, developed by OpenAI, being one of the largest created to date, with 175 billion parameters. ChatGPT is designed to generate human responses to questions in text mode, making it useful for a wide range of natural language processing tasks.

One of the main innovations of ChatGPT is its ability to generate coherent and contextually appropriate responses to the questions posed to it. This is achieved through a combination of advanced machine learning algorithms, massive amounts of data gathered from the web, and a sophisticated neural network architecture. As more and more data becomes available, our understanding of learning via artificial intelligence and neural networks will continue to grow.

The development of ChatGPT started in 2018 with GPT-1 and continued through the release of progressively more sophisticated models: GPT-2, the current version - GPT-3 - and, recently, an even more improved version was released, to GPT-4.

Google Bard AI

Google Bard AI is a chatbot developed by Google, that is, a system designed to simulate human conversations. This is supported by artificial intelligence and uses advanced natural language processing techniques, developed under the brand's proprietary system: LaMDA.

Shortly after ChatGPT went viral in international media and attracted worldwide attention, Google rushed to announce the upcoming launch of a similar tool: Bard AI . It is important to highlight some differences between them:

• Data Origin: While ChatGPT (in version 3) formulates responses based on data provided up to 2021 (Internet, books, etc.), Google Bard extracts information directly from the Internet, theoretically having more up-to-date information.
• Accessibility: Access to ChatGPT is open and free, however, there is a paid monthly subscription called ChatGPT Plus, which costs €20. However, there are no differences in the content of responses when compared to the free version.As for Google Bard AI, currently in the testing phase, it is scheduled to launch in February/March 2023 and is only available to a limited number of users.
• Usability: ChatGPT makes it possible to generate reports and summaries, create marketing materials, perform translations between languages, provide ideas and suggestions, write programming code and write essays. In addition, it is capable of explaining complex concepts and simulating a conversation as if it were a real person, among other functions. Google Bard assists with basic search functions, explaining complex concepts, and providing ideas and suggestions.

How can ChatGPT and Bard be useful in real estate activity?

Leaving fears and criticisms aside, this, like many other technological innovations, are just tools that can either help or harm real estate professionals. The secret lies in its correct use.

The scope of application is unlimited and covers several areas of the real estate sector, from construction to mediation::

• Real Estate Mediation:
  • assist real estate consultants in writing more complete, assertive and attractive descriptions for the property portfolio;
  • facilitate the construction and synthesis of responses to customer e-mails;
  • create and improve real estate capture scripts, aimed at contacting customers, prospects and owners;
  • assist in the preparation of feedback reports on mediation activity, periodically sent to owners;
  • planning real estate promotion events, such as Open Houses or others, etc.
• Translation:
  • Being an AI model, ChatGPT has extensive translation capabilities, being able to translate between multiple languages and dialects.Thus, it can be used to send messages to foreign customers or translate property descriptions, as well as validate the respective syntax and semantics;
  • Languages that ChatGPT has been most trained in include: English, Spanish, French, German, Italian, Portuguese, Chinese (Mandarin), Japanese, Korean, Russian, Arabic, Dutch, Swedish, Danish, Norwegian, Finnish, Turkish, Polish, Hebrew, Greek, Czech, Hungarian, Romanian, Ukrainian and Thai;
• Marketing:
  • plan and adjust the marketing strategy;
  • assist in the creation of advertising campaigns, looking for inspiration for themes, texts and slogans;
  • suggest ideas and write posts for social networks;
  • help in the elaboration of articles for the blog, or the newsletter, etc.
• Management and Finance:
  • collaborate in the elaboration of business strategies and management decisions;
  • help with financial analysis (ChatGPT is great at creating formulas for Excel);
  • support in drafting legal documents, especially in the area of collections.Please note that ChatGPT does not replace a lawyer or solicitor, but it can contribute to sending more assertive and professional letters to defaulting clients.
• Decor and Home Staging: answer questions about recent trends in decor, get inspiration for home staging interventions, furniture styles, color palettes and much more.
• Architecture: provide ideas and details that assist architects in the design of buildings.

OpenAI provides another tool, DALL·E 2, which is in the development and improvement phase. This is a state-of-the-art Artificial Intelligence system capable of generating varied and extremely detailed images from textual descriptions or variations related to a given image. In fact, the latest version of ChatGPT, 4.0, launched today, promises to analyze videos and images and interpret them, expanding the possibilities of user interaction and creation of multimedia content.

In short, Artificial Intelligence tools are shortcuts to knowledge and know-how, working wonderfully as a support and assistant in various areas of real estate activity . Tools like ChatGPT 4 impress with the speed with which they respond to complex questions, but it is important to complement them with additional research from credible sources .

You can consult my ChatGPT Guide for real estate consultants .

ChatGPT - Hallucinations, Errors and Remission

Although ChatGPT is trained on an extensive dataset and performs well in many tasks, it can make mistakes and generate confusing or misleading responses. It is crucial that users are aware of this limitation and do not consider answers to be true without first checking other sources . In version 4.0 of ChatGPT, a great effort was made to mitigate these effects, but the company recognizes that they are still not completely resolved. So keep in mind that:

1. ChatGPT may suffer from " hallucinations " and provide incorrect information, draw wrong conclusions, and texts may include phrases or words that make no sense, or have spelling and syntax errors;
2. ChatGPT can mix up information that is out of date with respect to location and time, skewing responses and misleading;
3. ChatGPT has more limited knowledge of the world than Google Bard.In version 3, you only have access to events and facts prior to 2021;

Just ask, and ChatGPT takes on the role of a famous poet. I asked him to write a short poem as if he were Sophia de Mello Breyner Andresen, and here is the answer:

In the sea of foam, crashing waves,
The beach wears the mantle of longing,
In the dunes, the wind dances, murmuring
Ancestral secrets, in eternity.

In sunlight, salt crystallizes,
The seagulls in the sky make the rounds,
From the lighthouse the message is eternalized,
Shining to the navigators, beyond the probe.

The shells bring travel stories,
Keep within themselves, dreams and legends,
And on the white sands, the landscape,
It intertwines in songs, that time holds (?).

I, Sophia, look at the sea with clear eyes,
I find inspiration in nature,
In the elements I see infinity,
And in simplicity, beauty.

Sophia de Mello Breyner Andresen - by ChatGPT

If it weren't for "by ChatGPT" many would be deceived. But wait! I asked ChatGPT: "Are you sure that the syntax of the sentence « Intertwines in songs, that time holds.» it's correct?" Answer :

I apologize for the error. Thanks for pointing it out. I'll correct the sentence to improve syntax and coherence. Here is the corrected stanza:

The shells bring travel stories,
Keep within themselves, dreams and legends,
And on the white sands, the landscape,
It intertwines in songs that time holds.

Surprise! After all, this ChatGPT 4, fresh out of the cauldron of Artificial Intelligence, recognizes errors and assumes its vulnerabilities:)

However, one of the mistakes admitted by the company is known as " ChatGPT Hallucinations ". The hallucinations, as described by the Artificial Intelligence Chat's own words, are:

ChatGPT "hallucinations" refer to times when the model generates incorrect, irrelevant, or unrealistic information in response to a question or request. These hallucinations can occur due to several factors, such as the model's lack of understanding of the context, noise during training and learning, or limitations in the model's ability to discern between true and false information.

Strategies and Tips to Make the Most of ChatGPT

Apparently, no big lessons are needed: just ask and ChatGPT responds. Simple, isn't it? Well, it's never that simple when it comes to language and its use in a given context. Here are some suggestions for making the most of ChatGPT's capabilities:

Provide context - If asking " How do I find the best real estate agent to sell my house? ", try adding location or country to the question, for example, "...in Oeiras, Portugal?". You will see that the answer adapts to your location. The more details you provide, the more contextualized and assertive ChatGPT's response will be. Some examples: " Write a description for a detached house, completely renovated, with 4 bedrooms, 2 living rooms, with garden and swimming pool, 3 bathrooms, set in a plot of 400 m2 and a gross construction area of 220 m2, in Quinta dos Lombos, Carcavelos, Cascais. Try it and be surprised.

Be specific - The more specific the question, the greater your satisfaction with the answer. If the answer is too general, please rephrase the question or add more information.

Regenerate response - If the response is not suitable, click the "Regenerate response" button at the bottom of the panel. ChatGPT will erase the given answer and restart the conversation. Try rephrasing the question, providing more context. A suggestion: ChatGPT tends to respond using Brazilian Portuguese or relating the response to the Brazilian reality. Therefore, start or end questions with "..., in Portugal?" contributes to adapting the response to the Portuguese reality.

Chat, don't just ask - ChatGPT often behaves like a 5 year old trying to learn about the topic under discussion to better understand the questions. Ask additional questions to refine the answer and help the system better understand what you want. Persist with the question and provide feedback such as " give me more options " or " I'm not satisfied with the answer ", among others. As the conversation progresses, with more questions and answers related to the initial question, ChatGPT learns and better adjusts to the desired answer.

Be patient and creative - The desired answer doesn't always come after the first question. Go ahead and provide more details, rephrase the question, or approach the issue from another perspective. Be creative with the questions and surprise yourself with the answers.

Get more accurate translations - Despite being registered and providing some personal data, responses may be influenced by commonly used languages, such as Brazilian Portuguese. To avoid this, formulate the request as follows: " Translate from Portuguese from Portugal... "...text to be translated..." ... into English from the United Kingdom ".

Request a specific type of text or translation - Inform ChatGPT about the purpose of translating or composing the intended text, e.g. " Give me a legal translation of... ", " Write a technical article about... ", or " Write a formal reply to this email... ", etc. You will see the tone and style of the response change.

Provide a text - In addition to the ability to generate texts "by order", ChatGPT can be inspired and create a new text based on an existing one, adapting it to new situations or requirements. For example, you can create real estate property descriptions from pre-existing writing. Simply provide this text to ChatGPT and ask it to make an improved version. Thanks to its advanced natural language processing technology, ChatGPT has the ability to read and understand the content, to then generate new material of high quality and relevance, taking advantage of its sophisticated artificial intelligence.

What are the main disadvantages of ChatGPT?

The list is not that big but the disadvantages deserve to be taken into account:

• Inaccurate or uninformed responses - Because GPTs are trained through trial and error, they are only as accurate as the data and algorithms they are based on. It may generate answers that are technically correct, but not entirely accurate in terms of context. As a result, some conversations with chatbots can lead to frustration and confusion. Verification of the information generated is essential.
• Lack of common sense - While ChatGPT can generate human-like responses and has access to a wealth of information, it lacks human-level common sense and lacks the knowledge we have. This means that it can sometimes provide meaningless or inaccurate answers.
• Lack of Emotional Intelligence - ChatGPT generates responses that seem empathetic, but lacks true emotional intelligence. It cannot detect subtle emotions or respond appropriately to complex emotional situations.
• Limitations in understanding context - ChatGPT has difficulty understanding contexts, especially sarcasm and humor. May have difficulty picking up on subtle nuances of human communication, responding inappropriately or irrelevantly.
• Limited Knowledge - While ChatGPT has access to a lot of information, the sources of information it has been trained with are limited and pre-2021. It may not answer very specific questions or be aware of recent developments in certain fields.
• Difficulty generating long content - ChatGPT has problems generating long and structured content. It is more suitable for generating short content, such as summaries or brief explanations, although version 4.0 promises to remedy this shortcoming.
• Grammatical Issues - ChatGPT's sensitivity to grammatical and spelling errors is limited. I give an example of this in the aforementioned poem.

What are the main advantages of ChatGPT?

The list would beendless, but I will list the ones that I consider most important for the real estate activity:

• Speed - Try comparing the time it takes to get an answer, using a search engine or surfing the Internet, with the time it takes to get it from ChatGPT. It is one of the most impressive advantages, the speed with which ChatGPT provides information that would take tens of minutes or even hours to obtain.
• Versatility - Change the subject, change the location, change the language, change the professional activity, change to a more informal or more professional tone and ChatGPT changes and adapts like a chameleon.
• Multilingual - ChatGPT drank the information that supports its responses in dozens of languages. Master reasonably well the rules of semantics and syntax of at least 25 languages.
• Resolution of complex problems - Version 4.0 has improved this functionality even more. We give it a set of inputs and it analyzes it and suggests a solution or plan.For example:
  • Question: "I need to visit 3 clients on the same day, Ana, José and Maria and I have to have lunch with Maria. I live in Oeiras, Ana lives in Setúbal, José lives in Lisbon and Maria lives in Cascais .How should I organize my schedule?"
  • Response:
    • First, go to Lisbon and visit José, as it is the closest place to Oeiras.
    • Afterwards, head to Cascais for lunch with Maria, as it is relatively close to Lisbon.
    • After lunch, end the day by visiting Ana in Setúbal, and then return to Oeiras.

This sequence of visits minimizes the total distance traveled and takes advantage of lunchtime to meet Maria in Cascais."

• It's Free - Although there is a monthly subscription for those who want faster access to the service, ChatGPT is free to use. Try to hire a human assistant, provide him with a space and working conditions, define a work schedule, etc... it doesn't charge anything, Oh and I don't pay taxes. We're done;);
• Personalization - ChatGPT adapts to the interlocutor and learns from him the best way to respond. The answer differs depending on how the question is asked and the ensuing conversation. It's like a "tailor's assistant" that provides the user-tailored response service.
• He's good at Portuguese and Mathematics;) - Writes original texts, corrects the spelling/semantics/syntax of texts we provide him, synthesizes or expands texts, translates... Math is even better!Try asking him: " Give me an excel formula to calculate the IMT of a property" and be surprised!
• Creativity - Although this predicate is reserved for humans, anyone who uses ChatGPT cannot fail to be surprised at the ease with which it suggests ideas, which a human assistant would have difficulty following, in the same response time and with the same creativity.
  For a human, creativity needs a favorable context: being on the right day, having time to think, being inspired by many sources and then grinding and straining the "brain gears" until an idea comes out. ChatGPT fires ideas, a dozen at a time:)
  One way to put the question is to quantify the response: " Give me 10 suggestions for a Father's Day post that has something to do with real estate and family ". In 5 seconds I have 10 creative suggestions. I choose one and ask: " Write the text of the post based on suggestion 10, in a more elaborate and well-disposed way and suggest an image ", the answer comes after another 5seconds (it would take longer if a human creative provided it):

ChatGPT FAQ

In conclusion, Artificial Intelligence (AI) has the potential to transform the real estate industry in significant ways in the coming years.While there may be challenges to overcome, such as data privacy and the ethics of using technology, AI can provide valuable insights for real estate agents and landlords, such as predictions of property prices and market supply and demand patterns. Furthermore, AI can also improve the customer experience by automating processes and offering personalized recommendations based on individual preferences.

However, it is important to remember that AI cannot completely replace the role of real estate consultants or human decision-making. Finding a balance between the use of technology and human expertise is critical to ensuring a sustainable and successful real estate industry. Note: This page has been revised and serviced by ChatGPT 4.0.