AI can better find its dream home than you.
During the VentureBeat Transform 2021 Conference, Redfin CTO Bridget Frey explained how a real estate brokerage firm uses AI to help sellers make more money in less time.
Its AI learns how potential buyers search for homes.
This means which listings they click on, whether they are planning tours or making offers, which offers are winning and what they are buying. Agents across the country are also adding data.
- Customers are 2x more likely to click on houses recommended by the AI Redfin compared to those that appear according to their search criteria.
- A quarter of all Redfin website and app traffic is from people browsing the houses they recommend.
So what’s the secret behind Redfin’s AI?
- Capital. The better the data, the better the algorithms – but not necessarily all the data. Per Under the Fair Housing Act, agents cannot talk about the demographics or socioeconomic status of neighborhoods, so Redfin doesn’t use that data either.
- Diversity. A team that “reflects the customer base” and can identify problems and solutions.
- Practicality. Really talk to the people who will be using the AI - or you may end up building the wrong one.
While this all sounds reasonable if AI Redfin doesn’t recommend a pool or sauna area … we’re questioning its technology.