AI’s Impact on Real Estate Practice: A President’s Perspective

Dear Members,

Artificial Intelligence (AI) is no longer a futuristic buzzword, it’s here in our industry today, reshaping how we work in both residential and commercial real estate. As President of the Central Arizona Association of REALTORS®, I’ve witnessed our field begin to transform. From smart home-price predictions to chatbots answering client questions at midnight, AI tools are becoming part of daily practice. In fact, 14% of real estate firms are already using AI actively, and another 58% are in the early or pilot stages of adoption. Globally, the real estate tech market is surging, projected to grow from $34 billion in 2023 to about $90 billion by 2032. That growth reflects enormous potential efficiency gains (one estimate says AI could save the industry $34 billion by 2030). Clearly, AI is poised to revolutionize our profession, but it also brings new challenges we must navigate responsibly.

In this newsletter article, I’ll walk through the top ways AI is impacting real estate practice today (and tomorrow). We’ll look at what’s happening in residential and commercial sectors, which AI technologies are in use now versus on the horizon, and how all this might improve our work. I’ll also address the legal and ethical issues AI raises under Arizona law and Arizona Department of Real Estate (ADRE) rules, including potential conflicts with MLS policies. Finally, we’ll consider how appraisers are adopting AI and what that means for transactions, and examine a troubling downside: the rise in deed fraud aided by AI (with strategies to protect ourselves and our clients). Let’s dive in to these key areas shaping our industry:

1. Smarter Market Analysis and Pricing Predictions:
   One of the most powerful uses of AI is crunching vast amounts of real estate data to predict market trends and property values. In residential practice, we’re all familiar with algorithmic valuations like Zillow’s “Zestimate.” Modern AI models can analyze comps, neighborhood stats, and even economic indicators to estimate home prices with increasing accuracy, some automated valuation models boast error rates as low as 2–3% off the eventual sale price. Many brokerages now use AI-driven pricing tools to help advise sellers on list price or to forecast neighborhood price changes. On the commercial side, AI is a game-changer for investors and developers evaluating deals. Platforms exist that can process thousands of data points, rent rolls, demographics, traffic counts in seconds to determine if, say, a retail site is worth pursuing. Market analysts report that AI can “spot patterns in market trends and demographic shifts that would take human analysts weeks”. The benefit is faster, more data-driven decision making: research that once took weeks of spreadsheet work can be done almost instantly, allowing us and our clients to capitalize on opportunities quicker than competitors.

Importantly, these AI analytics are used today. Forward-thinking firms already harness AI to identify emerging “hot” markets or flag undervalued properties. For example, an AI platform might flag a commercial site as a great investment because it sees patterns (in traffic flows, incomes, etc.) that suggest a new store would thrive, patterns we might have missed. In residential realty, AI can help agents determine which neighborhoods are likely to appreciate. Near-future advancements will push this further. We expect AI to incorporate even more variables (like climate risk or migration trends) into value predictions. By 2030, nearly 37% of tasks in commercial real estate could be automated by AI, many of those involving market analysis and financial modeling. This doesn’t replace our expertise, but augments it: think of AI as an ultra-fast assistant analyzing data while we focus on strategy and client relationships. As one industry veteran put it, AI brings unprecedented speed and accuracy to a traditionally slow-moving industry, freeing us up to focus on negotiation and service. The bottom line: AI-driven analytics are helping us price and plan more intelligently, in both residential sales and multimillion-dollar commercial deals, and that trend is only growing.

2. Personalized Marketing and Virtual Customer Service:
   Another major impact of AI is how we market properties and engage clients. Many of you have experimented with ChatGPT or similar tools and you’re not alone. In industry surveys, over 80% of agents say they use AI to help write property listing descriptions. AI writing tools can draft engaging listing copy, create social media posts about new listings, or tailor email newsletters to clients. This happens in seconds, saving us time. For instance, instead of spending an hour writing a flyer for a luxury home, an agent can prompt an AI to do a first draft, then polish it. The result is often polished and catchy, though we must double-check facts. AI can also analyze consumer behavior online to help target our marketing: predicting which website visitors are serious buyers, or which past clients might be ready to move again, so we can reach out proactively. These predictive lead generation systems are already used by some brokerages to maximize the effectiveness of marketing budgets.

Perhaps the most visible AI on the residential side are virtual assistants and chatbots. Brokerages in Arizona have begun adding chatbot widgets to their websites and Facebook pages that can answer basic questions (“What’s the school district for this home?”) or schedule showings. These AI assistants are available 24/7, giving consumers instant answers when we might be unavailable. They can handle common inquiries and free up agents for higher-level work. On the commercial side, chatbots might handle initial inquiries about a lease listing or gather info from a prospective tenant before a human follows up. And beyond text, some companies are using AI voice assistants for phone inquiries. All of this creates a more responsive, on-demand experience for clients.

That said, human expertise remains crucial. AI sometimes produces generic or erroneous responses, it lacks the local knowledge and intuition that we REALTORS® provide. As the Arizona Association of REALTORS® has noted, chatbots can’t (so far) replicate an agent’s personal touch, negotiation savvy, or deep understanding of Arizona neighborhoods. They might answer FAQs, but they won’t replace the reassurance of talking to an experienced REALTOR® about a big decision. Looking ahead, AI will likely get better at conversational nuance and even multilingual support for clients. We may see more augmented reality home tours guided by AI narrators, or AI systems that can dynamically customize a home search for a buyer (“show me homes that fit my style, based on my past favorites”). Those technologies are on the horizon, but even as they emerge, they’ll serve to assist us, not replace us. Used well, AI lets us respond faster and more efficiently to clients – as long as we continue to add the personal care and hyper-local expertise that truly sets us apart.

3. Streamlining Transactions and Office Operations:
   Real estate transactions generate mountains of paperwork and data, and this is where AI shines in an “unsexy” but hugely impactful way. Document processing and transaction management are being transformed by AI tools right now. Take lease administration in commercial real estate: tasks like reviewing leases, extracting key terms, and tracking payments used to consume entire teams for days. Now, AI can scan and interpret these documents in minutes. Colliers International, for example, found that what used to take a lease admin team 5–7 days now takes minutes with AI’s document analysis. In one case, when a client’s systems were down, Colliers used AI-based optical character recognition to pull data from 40–50 scanned lease documents and ensure rent payments didn’t get missed – a job that would’ve taken staff a week was done almost instantly by AI. This kind of efficiency means fewer errors and no dropped balls, which benefits clients and brokers alike.

In residential transactions, we’re seeing AI help with contract review and compliance. Some broker compliance departments use AI to flag missing initials or identify unusual clauses in a purchase contract that deviate from standard. Title companies and lenders are also deploying AI for faster title searches and to detect liens or issues in the chain of title. An AI might catch a detail in a title report that a busy human could overlook. And on the mortgage front, AI algorithms are expediting loan approvals by quickly analyzing income, credit, and appraisal data to issue underwriting decisions in a fraction of the time it used to take. All of this could compress the timeline of closing a deal – something we’d all appreciate!

Office operations are also getting a boost. AI scheduling assistants can coordinate showings or meetings by automatically finding calendar availabilities. Brokerage accounting systems use AI to auto-categorize and flag expenses. Even customer relationship management (CRM) software is adding AI that can remind you which prospects to call (“It’s been 3 months since contact, reach out to Client X”) based on patterns that lead to successful sales. Looking forward, the near-future may bring even more integration: imagine an AI transaction coordinator that handles the entire escrow timeline – sending reminders, ordering inspections, updating all parties – under an agent’s supervision. Or smart contract platforms that negotiate simple terms (like routine inspection repair credits) based on preset client preferences. We aren’t there yet, but elements of it are appearing.

The key advantage here is reducing drudgery and human error. By automating repetitive, low-value tasks, AI lets us focus on advising clients and solving problems. As one appraisal executive observed about their new AI tools, “they enable us to focus on what we do best, expert analysis and decision-making, while automating time-consuming tasks that add little value”. That’s a trend we can all embrace: working smarter, not harder, to deliver better service.

4. AI in Property Management and Commercial Operations:
   While residential agents see AI in marketing and transaction prep, commercial practitioners and property managers are leveraging AI in other exciting ways. One big arena is building operations and maintenance. Modern office buildings and shopping centers are installing AI-driven management systems that continuously adjust heating, cooling, lighting, and more for optimal efficiency. JLL, a major commercial firm, uses an AI platform called “Hank” to tune building HVAC settings based on real-time weather and usage – resulting in energy cost reductions of 20% or more. In one Bay Area office building, integrating this AI helped cut HVAC energy use by 45% and significantly improved air quality for tenants. These systems learn patterns (like when a building tends to be underutilized) and proactively save energy, benefiting owners’ bottom lines and sustainability goals. They can even predict maintenance needs: sensors plus AI analyze equipment performance to tell you before an AC unit fails that it needs service, preventing costly downtime. This predictive maintenance, powered by AI and Internet of Things (IoT) devices, is revolutionizing property management, making it more proactive than reactive.

Another area is site selection and development. Commercial developers are using AI to evaluate potential development sites by crunching zoning regs, traffic data, and market demographics. On the design side, architects employ generative AI tools to create and refine building concepts quickly. One architect reported that using AI to generate early design renderings cut his design timeline by 30%, letting clients visualize projects sooner. AI can churn out dozens of design variations in minutes, something that used to take weeks of manual drafting. By doing the heavy lifting on schematic designs, AI lets human designers focus on creativity and client needs. In short, commercial real estate – from development, to leasing, to facilities management, is seeing efficiency gains thanks to AI handling complex analytical tasks behind the scenes.

For residential property management (like rentals), similar innovations are emerging. AI chatbots handle routine tenant requests (e.g. “My sink is leaking”) and dispatch contractors, or even troubleshoot by guiding a tenant through simple fixes. AI systems can also smartly screen rental applications: beyond credit scores, they might flag subtle indicators of risk or reliability by comparing an applicant to patterns of successful tenancies. All of this can help landlords make better decisions quickly, though we must ensure fair housing compliance (more on that soon). The future will likely bring further AI assistance in managing homes – for example, smart home devices that use AI to learn an occupant’s preferences and adjust climate control or security accordingly. Arizona’s hot climate might inspire AI routines that optimize AC use for energy savings while maintaining comfort.

Whether in a single-family rental or a high-rise office, AI’s role is to boost efficiency and cut costs. It’s doing the heavy data analysis, making instantaneous adjustments, and flagging issues early. The results reported so far are impressive – energy savings, faster project timelines, less waste. As these tools become more common, our role as agents and property managers will evolve to oversee these smart systems and interpret their output for our clients. In the end, we’re still the decision-makers, but we’ll have much better information at our fingertips.

5. AI in Valuation and Appraisal:
   A question often asked is, “Will AI replace appraisers?” The short answer is no, but it is changing how appraisals are done. Automated valuation models (AVMs) have been around for years (as mentioned, tools like Zestimate or lender AVMs). What’s new is that certified appraisers are beginning to use AI-based tools to enhance their work, not just compete with it. For example, some appraisers use AI to auto-fill appraisal forms with data pulled from public records and comps, saving time on data entry. More advanced AI software can scan an appraisal report draft to catch inconsistencies or errors, a kind of intelligent quality control. Opteon, a national appraisal firm with presence in Arizona, implemented an AI-assisted quality check system (“Intara”) and saw big improvements: 21% fewer revision requests from lenders, 32% faster review times, and 62% less manual work on reports after just three months. Those are huge efficiency gains, meaning quicker turnarounds for borrowers and less tedium for appraisers.

Crucially, the appraiser remains central to the process. The AI can flag issues or crunch data, but a licensed human still makes the final adjustments and valuation judgment. In fact, professionals report that these tools enhance the quality of analysis – by catching things the human might miss and ensuring more consistent, data-supported reports. The CEO of an appraisal tech firm recently noted that their AI doesn’t replace human expertise, it amplifies it, allowing appraisers to spend more time on deep analysis and less on routine checks. This is similar to how we agents might use an AI CMA (comparative market analysis) tool, it can crunch numbers on recent sales, but we still interpret the nuances (upgrades, curb appeal, etc.) to fine-tune the price.

Are appraisers in Arizona using AI now? Some are. In fact, the President of the Arizona Association of Real Estate Appraisers has openly embraced AI like ChatGPT to help manage and market her appraisal business. Many appraisers remain cautious (understandably, given regulatory requirements), but the trend is toward cautiously integrating AI. Lenders and GSEs (like Fannie Mae) are also leaning on automated valuations for certain low-risk loans, sometimes waiving the need for a full appraisal if an AI model’s confidence is high. That speeds up transactions but can be a double-edged sword if the model is wrong, something appraisers and agents watch closely. In commercial appraisal, AI is used to project income flows, run complex discounted cash flow analyses, and even scan market leases to estimate market rent. These are tasks that once took days of an MAI appraiser’s time; AI can handle the grunt work in seconds, again leaving the human expert to apply judgment to the results.

So, while AI might reduce some demand for manual number-crunching, appraisers are not becoming obsolete, instead, they’re becoming AI-augmented professionals. For transactions, this likely means faster appraisal deliveries and possibly more accurate valuations due to fewer mistakes. As agents, we should stay informed about these tools because they affect turnaround times and how we discuss pricing with clients. And yes, it’s possible in the near future that AI could draft portions of an appraisal report (the boilerplate narratives or neighborhood descriptions) which appraisers then edit. Efficiency is great, but we’ll always need that human reality check, especially in a diverse market like Central Arizona where one tract can differ greatly from another. The appraisal process is getting smarter, and that can lead to fewer surprises in transactions, which is a win for everyone involved.

6. Navigating Legal and Ethical Challenges of AI:
   With all these innovations come important legal and ethical responsibilities. As REALTORS®, we are bound by Arizona law, ADRE regulations, and our Code of Ethics to protect the public and our clients. Using AI doesn’t excuse us from those duties – in fact, it raises new questions. Here are some key issues we must be mindful of:

• Accuracy and Misrepresentation: AI can generate text or data instantly, but it is not infallible. We’ve seen cases of AI tools confidently spewing false info. If you let an AI write a listing description, it might insert an amenity the home doesn’t have or misstate the square footage. As the agent, you are responsible for any inaccuracies, even if “the computer wrote it.” Arizona’s regulations and Article 12 of the REALTOR® Code of Ethics prohibit false or misleading advertising. NAR’s legal counsel warns that “AI platforms are not 100% accurate, which makes your oversight critical” , we must verify all AI-generated content carefully. Misrepresentation, even unintentional, can lead to ADRE disciplinary action. Bottom line: always review and fact-check AI outputs before they go public. They can help draft, but we must be the editors and truth-checkers.
• Unauthorized Practice of Law: In Arizona, like all states, writing contracts or giving legal advice is a restricted activity, and AI is not a licensed person. Using AI to draft a custom provision in a purchase contract, or asking it for legal advice on a transaction, could land an agent in hot water for unauthorized practice of law. Our ADRE Commissioner’s Rules and the Code of Ethics (Article 13) are clear that we shouldn’t step outside our lane as real estate licensees into legal counsel. NAR warns explicitly: Do not use AI to draft contracts or modify legal forms. Those tasks must remain with the appropriate professionals (or using standard forms we fill in). If an AI suggests adding some novel clause, resist the temptation – it might be legally incorrect and you’d bear the liability. Always consult an attorney for anything beyond the norm. Remember: AI has no legal standing, and its “advice” could be dangerously wrong. Keep our fiduciary duty front and center.
• Fair Housing and Bias: This is a critical ethical area. AI systems learn from data – and sometimes that data contains biases. An AI might, for example, generate a description saying “family-friendly neighborhood,” which could inadvertently violate fair housing laws (by suggesting a preference for families, thus hinting at familial status discrimination). Or a more subtle case: if a brokerage used an AI lead-scoring tool to prioritize clients, we must ensure it’s not skewing leads on the basis of protected characteristics (race, religion, etc.). The Arizona Association of REALTORS® has highlighted that AI can inadvertently produce discriminatory outputs if not carefully monitored. Perhaps the training data had biased patterns – the AI might then steer certain buyers away from certain areas or use coded language. This is unacceptable. We must apply our fair housing training to any AI use: no discriminatory language or treatment, period. That may mean reviewing AI-generated text for problematic wording and scrubbing it. It also means ensuring any AI tools we use (for ads, tenant screening, etc.) are vetted for compliance. If an AI can’t be checked for bias, better not to use it for that task. Transparency is key – some brokers are now adding disclaimers when AI is used in client-facing tools, making clear it’s just a tool and reaffirming that fair housing rules are followed.
• Privacy and Confidentiality: When you use an AI service (like ChatGPT), think about what data you are inputting. If you paste a client’s inspection report or financial info into a chatbot to “summarize this,” you might inadvertently be sharing confidential data with a third-party AI provider. Arizona law and our duties of confidentiality demand caution here. Never upload sensitive client documents or personal details into an AI tool unless you’re certain of how that data is stored and used. Many AI platforms store input to further train their models (meaning it’s no longer private). There’s also cybersecurity concerns, could that data be breached? We should treat AI like any other technology under ADRE’s rules for safeguarding client info. Use it wisely, and only feed it information that you’d be comfortable being public. One best practice some agents follow is stripping identifying details out, or using local/offline AI tools that run on a personal computer without uploading to the cloud.
• MLS Rules and Photo Manipulation: ARMLS and CAAR MLS have rules that touch on AI usage, even if they don’t mention “AI” explicitly. A prime example is photo editing. Virtual staging is allowed (e.g., digitally adding furniture to a vacant home), but altering a photo to misrepresent the property is prohibited. Under MLS guidelines state you may add things like furniture, but you cannot add or remove permanent features. For instance, adding a beautiful mountain view that isn’t actually there, or Photoshopping out a crack in the wall, would be deceptive and violate MLS rules. With new AI image tools, it’s easier than ever to do such alterations. We must resist that temptation. If you use an AI tool to declutter a room or stage it, ensure the end result is truthful to the property (and consider labeling the photo “virtually staged”  in the CAAR MLS to be transparent). ARMLS provides an approved watermark for virtually staged images. Likewise, any AI-generated images (say, an artist’s rendering of what a renovation might look like) should be clearly identified as such and not mixed in a way that confuses buyers. Always present a “true picture” of the property, that standard hasn’t changed just because the tech did.
• Duty to Supervise and Competence: Brokers, take note,  if your agents are using AI, you need to supervise that usage like any other tool. Ensure they understand these pitfalls. ADRE expects brokers to supervise licensee activities, and that extends to technology. Providing training or guidelines on AI use is a good idea. Also, consider that competence (an ADRE requirement and Code of Ethics Article 11) now includes having a basic understanding of the tools you use. As agents, we shouldn’t blindly rely on AI output without understanding its limitations. Using technology ineptly could be seen as a lack of competency. So invest time in learning the basics of how your AI tools work and where they can err.

In summary, AI doesn’t change our fundamental legal and ethical duties. We still must be honest, fair, and skilled. If anything, we have to be even more vigilant. Use AI to assist, not to autopilot your practice. And when in doubt, err on the side of caution, double-check that listing, maintain personal oversight, and keep the human touch in your dealings. This will keep you on the right side of ADRE, the law, and most importantly, our clients’ trust.

7. Fraud, Deed Scams and Security Risks in the AI Era:
   Not all impacts of AI are positive, unfortunately, criminals are exploiting these tools as well. A particularly alarming trend is the rise in deed fraud and real estate scams using AI. In Arizona and across the country, we’ve seen instances of fraudsters impersonating property owners to steal titles or rental proceeds. AI makes this easier through incredibly convincing deception techniques:

• Deepfake Identifications: Scammers can use AI to create “deepfakes”, realistic fake videos or audio that mimic real people. For example, a criminal might obtain some public video or even just a photo of a homeowner. With AI, they generate a video where “the owner” appears and speaks. In one case, a couple in California lost $720,000 when what seemed to be their real estate attorney on a Zoom call instructed them to wire money, it was actually a deepfake video controlled by a scammer. Another attempted scam in Florida involved a fake seller on a video call; the title agent grew suspicious when the person’s image wouldn’t respond to simple movements (revealing it was a looped deepfake). These technologies mean an imposter can pretend to be a seller or buyer remotely with frightening credibility.
• Voice Cloning and Phishing: AI can clone voices from just a short sample. The fraud “toolkit” now includes AI-generated phone calls and emails. A scammer might call an agent or title company mimicking a client’s voice to change wiring instructions – and it only takes seconds of audio for AI to recreate your voice’s sound. Likewise, AI-written emails can be alarmingly good. Studies show AI-crafted phishing emails get 3× more clicks than those written by humans. This means agents, clients, and escrow officers have to be on high alert for bogus emails that look perfectly legitimate – logos, language, and now even familiar voices can be faked.
• Synthetic Identities for Deed Fraud: Criminals are also using AI to assemble fake identities that pass muster. They might combine stolen data with AI-generated elements (like a realistic AI-generated photo ID) to pose as a property owner. This is used in deed fraud, someone impersonates the owner of a vacant or rental property, files false documents to transfer the property, and then attempts to sell it or borrow against it. AI makes the fake IDs and even live video verifications much harder to detect. The industry is seeing a surge in such seller impersonation fraud, where everything seems in order until you realize the person was an impostor. The FBI reports real estate fraud is increasing, with tens of billions in losses in recent years, and sophisticated criminal networks are often behind these schemes.

All of this sounds scary, and it is a new kind of threat we must guard against. Arizona legislation enacted in 2025 requires all Arizona counties to implement a recorded document alert system, and several counties, including Gila and Maricopa, already have operational systems.  The Gila County Recorder’s Office has responded by offering a free “Title Alert” program that notifies property owners if any document is recorded in their name. I highly encourage everyone (and tell your clients too!) to sign up for these alerts, it’s a key mitigation strategy for deed fraud. If a scammer tries to file a fake deed on your home, you’ll get an email notification right away, so you can intervene before further damage is done.

What else can we do to protect our transactions and clients in this AI-enhanced fraud era? Here are a few tips:

• Be Extra Vigilant in Verifying Identities: As agents, when we take a listing, especially for an absentee owner or someone we’ve never met in person, we should verify they are who they claim. Insist on seeing ID in person or via a secure video call and watch for inconsistencies. If a “seller” refuses to meet live or only wants to communicate by email/text, that’s a red flag. Title companies are now asking some sellers to do in-person notarization or use secure remote online notarization (RON) platforms that have built-in anti-deepfake measures (like liveness tests, where the person has to turn their head or perform actions a pre-recorded video can’t). As REALTORS®, we should cooperate with these extra steps and even encourage them when something seems off. It’s better to slow down a bit for verification than to facilitate a fraud.
• Secure Communications: Always follow the mantra “secure and verify” for funds transfer instructions. Wire fraud is rampant (though not new, AI just makes the fake emails more convincing). Educate your clients: never trust a simple email for wiring instructions change. Our brokerage policy (like many) is to use encrypted email or portal messages for wire info and to verbally confirm by known contacts. Now, with voice cloning, even a phone call could be faked, so consider having clients use a known number or perhaps a code phrase. It may sound spy-like, but these precautions can save hundreds of thousands of dollars. Essentially, establish verification procedures for any sensitive transaction details and stick to them. If you get an email from a client about money that just “feels” a bit off in wording, double-check using a different channel.
• Use Advanced Fraud Tools: Title agencies are increasingly employing AI-based fraud detection tools themselves (for example, programs that scan IDs for authenticity or analyze whether a video feed is likely a deepfake). As transaction coordinators, stay in the loop – ask your title reps what measures they have and support them. If they send you a note saying “we need a thumbprint” or “we’re doing a secondary verification call,” understand this is part of new multi-factor verification to defeat AI scams. Better inconvenience than calamity.
• Educate Clients and Colleagues: Part of our duty is to educate the public. Many homeowners have never heard of deed fraud or deepfakes. Consider adding a snippet about property fraud alerts in your client newsletters or social media posts (e.g., “Did you know you can be notified if someone tries to tamper with your home’s title? Here’s how to sign up…”). Within our offices, share any close calls or new scam tactics you hear about. We’re all in this together, the more aware we all are, the harder it is for criminals to succeed. ADRE and the Arizona Association of REALTORS® periodically release fraud warnings (for instance, the state Attorney General have been actively warning about deed scams). Let’s amplify those messages.
• Stay Updated on Security Tech: Just as criminals use AI, we have defensive AI too. Some email providers use AI to filter phishing, and video conferencing software is getting better at flagging synthetic backgrounds or faces. Keep your software up to date and consider investing in verified identity platforms for remote signings. The arms race will continue, but we want to be on the cutting edge of protection for our clients.

In summary, AI has opened a new front in the battle against fraud. Deed fraud and wire fraud are not new, but they’re evolving. By staying informed and instituting rigorous verification practices, we can greatly mitigate the risks. It’s an unfortunate reality that as we celebrate the efficiencies of AI, we also have to guard against its abuses. Let’s remain vigilant and ensure that trust, the foundation of our business, is not undermined by these high-tech cons.

Conclusion:
AI is truly impacting every facet of real estate, from how we price properties, to how we market and manage them, to how we guard them against criminals. As President of the Central Arizona Association of REALTORS®, I am excited about the efficiencies and insights these tools bring. Imagine being able to advise your client with even more confidence because you have AI analytics backing your gut instincts, or being able to handle double the transactions because your “digital assistant” took care of the repetitive stuff. Those upsides are real. Morgan Stanley researchers estimate AI could generate tens of billions in value through new efficiencies in our industry – and we’re starting to see it here in Arizona. Commercial firms are saving energy and dollars with AI-managed buildings; residential brokerages are drumming up new business with AI lead predictors; and deals are closing a little faster thanks to smarter processes.

However, our REALTOR® values and responsibilities haven’t changed. We still owe our clients honesty, integrity, and expertise. We must use AI carefully, as a tool to assist us, not to replace us. There is an art to real estate that no algorithm can replicate: understanding a client’s true needs, negotiating a delicate deal, or empathizing and problem-solving when emotions run high. Those are human skills. My message to you is to embrace AI’s advantages, don’t be afraid of it, but also stay educated and cautious. Follow all the laws and guidelines we discussed: double-check AI-generated content for accuracy, avoid unauthorized practice of anything, uphold fair housing in every byte of data, and keep the “real” in real estate by being the knowledgeable professional at the helm.

Central Arizona is a dynamic market, and we REALTORS® have always adapted to new technology, be it the fax machine, the internet, or now artificial intelligence. By integrating these tools into our practice thoughtfully, we can elevate our service to clients both in residential and commercial realms. Let’s leverage AI to work smarter, protect our clients, and propel our businesses to new heights, all while remaining firmly grounded in the ethics and expertise that define our profession.

Thank you for reading, and as always, stay tuned and stay sharp – the future is here, and we’re ready for it!

– Dennis Riccio, President, Central Arizona Association of REALTORS®

Sources:

1. Colliers International, AI in CRE: The Now, the Next and the Possible – Example of AI reducing lease administration from days to minutes.
2. NAIOP Commercial Real Estate Dev. Assoc., AI’s Growing Impact on CRE – Proptech market growth from $34B (2023) to $90B (2032); AI in building management cutting energy use ~20%.
3. GrowthFactor.ai Blog – Morgan Stanley Research on $34B efficiency gains by 2030; AI valuations achieving 2–3% error rates.
4. Arizona Assoc. of REALTORS®, AI-Powered Chatbots for REALTORS® – Warnings on chatbot limitations (lack of personal expertise, context, negotiation skill) and fair housing concerns with AI.
5. NAR REALTOR® Magazine – Using AI: 3 Traps to Avoid – Emphasizing accuracy (no misrepresentation) and avoiding unauthorized practice of law (don’t draft contracts with AI).
6. ARMLS (Arizona Regional MLS) – Virtually Staged Photos guidelines – Allowed vs. not allowed image edits (cannot add features not present).
7. Appraisal Buzz (Lee Trice), The Future of AI in Valuations – AI quality control in appraisals led to 21% fewer revisions, 32% faster QC, with AI supporting (not replacing) appraisers.
8. American Land Title Assoc., AI, Deepfakes and Fraud – Real examples of AI-driven fraud: fake attorney video cost $720k to victims; voice cloning threats and synthetic identities for deed fraud.
9. V7 Labs, AI in Real Estate – Adoption stats: 14% of firms active, 28% testing, 30% pilot; 82% of agents use AI for descriptions (but 60% lack understanding).
   １０. GrowthFactor.ai – AI aiding commercial site selection; 37% of CRE tasks automatable; AI boosting investment analysis speed 4–10×. (Multiple sources consolidated)