The article also predicts that AI will continue to drive proptech advancements in the coming year. However, it warns that the cost of running AI models could hamper consumer-level innovation. It also suggests that ongoing commission lawsuits could impact how proptechs serve the industry, potentially affecting everything from back-end accounting standards to revenue forecasting, home valuations, and even agent count.
Key takeaways:
- The rapid maturation of artificial intelligence (AI) was the most talked-about news event of 2023 in the real estate sector, with companies like Zillow making smart acquisitions and rolling out products for listing agents.
- AI has not replaced anyone in the industry but has instead supercharged productivity tools, enhancing how people search for and decide on a home.
- Zillow continued to lead the market share for real estate search portals, with 44% of the market for real estate web traffic.
- Despite a decrease in venture capital investment in proptech, there were some bright spots, with $8 billion in new capital commitments made in the last week of January 2023 alone.