Real Estate Enters Its AI Overload Phase

While you’re searching through real estate listings for a new residence in Franklin, Tennessee, you come across a vertical video showcasing spacious rooms with a four-poster bed, a well-stocked wine cellar, and a luxurious soaking tub. In a corner of the video, a cheerful real estate agent narrates the tour of your ideal home in a calming voice. It appears flawless—perhaps just a bit too flawless.

The twist? Everything in the video is generated by AI. The actual property is completely vacant, and the opulent furnishings are results of virtual staging. The realtor’s narration and expressions are crafted from text prompts. Even the slow pan of the camera over each space is driven by AI, as no real camera was used.

Any real estate agent can produce “just that, at home, in a matter of minutes,” says Alok Gupta, a former product manager at Facebook and software engineer at Snapchat who co-founded AutoReel, an application enabling realtors to transform images from their property listings into videos. He noted that between 500 and 1,000 new listing videos are generated via AutoReel daily, with realtors from the United States, as well as New Zealand and India, utilizing the technology to market thousands of properties.

This is one of several AI tools, including more well-known ones like OpenAI’s ChatGPT and Google’s Gemini, that are swiftly transforming the real estate sector into something that isn’t necessarily, well, authentic.

“I’ve attended a few conferences in recent weeks, and anecdotally speaking, when we ask an audience of 100 how many are utilizing AI, I’d estimate 80 to 90 percent raise their hands,” shares Dan Weisman, the director of innovation strategy at the National Association of Realtors, the largest real estate trade organization in the US. “We are witnessing a significant increase in usage.”

Like many sectors, the leading figures in this industry are eager to adopt a surge of generative AI products that promise to boost productivity, reduce expenses, and transform every facet of the consumer journey. However, when it comes to renting or buying a home—often the most expensive decisions in adulthood—the inclusion of AI-generated photos, videos, and listing descriptions can heighten the sense of risk.

Elizabeth, a homeowner in rural Michigan who prefers not to disclose her last name for privacy reasons, monitors local real estate listings to keep track of her home’s value.