Yesterday, Inman reported that, rather than replacing real estate agents, artificial intelligence is increasingly being used to streamline the operational aspects of businesses. That change, the agency says, is where the technology’s real value lies.
In other words, AI isn’t changing the conditions for agent success; it’s giving agents more time to focus on their work. That’s because the reality is that there are still many things that AI is bad at, and there are many tools that don’t live up to the hype.
Below, we detail the promises and limitations agents feel when implementing AI.
What AI still can’t do
There was a near-universal sentiment that AI can help but not replace. Although technology is advancing rapidly, agents consistently pointed to the same limitations: judgment, trust, and relationships.
“AI cannot read the situation in heated negotiations,” said Ryan Fitzgerald of Raleigh Realty. “It also doesn’t help if a first-time buyer is anxious.” Those moments when a deal is complex, emotions are high, or decisions have long-term implications are when agents can provide the most value.
Mr. Fitzgerald added, “When a buyer is choosing between two nearly identical homes, the decision is not based on square footage, but on the lifestyle of the person.”
Latham Jenkins, a luxury goods agent in Jackson Hole, Wyoming, said the same dynamic is even more pronounced in the luxury market. “In luxury real estate, the emotional and experiential elements are still human-driven,” he said. “AI helps us prepare at a higher level and execute with more precision.”
Even agents who are actively implementing AI are careful where they draw the line. Realty First’s Eric Leland said he has completely avoided fully automated CRM systems and autonomous customer workflows. “Overusing AI seems like a good way to undermine trust,” he says.
A high hurdle for everyone
Even if AI does not replace agents, the meaning of competitiveness is changing. One theme came up repeatedly throughout the interviews. That means AI is raising the baseline.
Agents can now create better marketing, faster. Data can be analyzed more easily. We can respond more quickly and professionally. As these features become ubiquitous, they cease to be differentiators and become expected.
“I think AI really raises the bar,” said Tim Gaasch of Clever Offers. “We plan to take a more consultative approach to our business.”
Fitzgerald puts it more directly: AI will define higher standards for what “good” looks like. “Agents that employ AI will provide a higher quality of service,” he said. “Agents who resist change are going to struggle.”
Ben Mizes of Clever Offers agreed with that sentiment. Agents who use AI effectively will be able to perform at new levels, while those who don’t will fall behind.
Leland believes AI could accelerate an industry shakeout that was already underway. He’s not worried about experienced agents with strong relationships. However, companies without a clear value proposition and only doing a few deals a year may find it difficult to compete.
Smarter consumers, new dynamics
AI is also changing consumer behavior. Leland said some customers told him they found his name by asking ChatGPT or Gemini for local recommendations. This is a change that could soon change the way agents are discovered online.
“This effectively replaces long-tail keyword searches,” he said.
Buyers are also arriving earlier in the process and with more information. Many people use AI tools to research neighborhoods, schools, prices, and more before contacting an agent. “That empowers the consumer,” Leland said. “It becomes more important that the agent has a deep understanding.”
Fitzgerald has seen similar trends, particularly when it comes to pricing. More and more customers are using AI tools to estimate the value of their home before making an inquiry. That can be helpful, he says, but it can also be misleading. “Many of these tools provide very inaccurate values,” he says, especially for unique properties or volatile markets.
On the marketing side, AI is creating both opportunities and risks. AI-generated listing descriptions and virtual staging are becoming more common, but they aren’t always effective. Fitzgerald described some of the results as an “uncanny valley,” elegant but a little off and sometimes misleading.
Leland said the same applies to listing copy. Some AI-generated explanations work, while others clearly don’t. “Consumers can know that,” he said.
Structural change rather than substitution
For some agents, the bigger story is not what AI is doing now, but what AI will become in the future. Austin Hudspeth, a broker in Bellingham, Wash., with a background in SaaS, believes many agents still underestimate the technology.
Currently, most people treat AI as just another tool, similar to social media or SEO, he said. But over time, the way agents generate business and interact with the broader technology ecosystem is likely to be reshaped.
“This is a critical inflection point for the industry,” he said, pointing to the potential for agents to further build and control their own lead pipelines rather than relying on third-party platforms. Still, Hudspeth doesn’t think the fundamentals will change.
“The core remains the same,” he says. “Local insight, relationships and access to the community are still at the heart of our business.”
Jenkins similarly called AI a “tectonic change” rather than just hype or a clear threat. “Business intermediaries will become more automated,” he says. “But the role of an advisor at the highest level becomes even more valuable.”
Act quickly, but don’t act blindly
One of the biggest challenges agents currently face is not access to AI tools. It’s about deciding which ones actually matter.
“There are so many new tools coming out every week,” Gersh says. “It’s hard to decide what’s really worth using and what’s just a fad.”
Fitzgerald said the same thing. The problem is not keeping up with new developments, but assessing the return on investment. “It seems like every week there’s a new ‘game-changing’ AI product,” he said. “Most of them disappear within six months.”
As a result, many agents are taking a cautious approach. South Florida real estate agent Alexei Morgado said he spends a little time each day testing tools that solve specific problems, rather than chasing every new release. “If you’re focused on actually solving a problem, 15 minutes a day can be enough to keep you going,” he said.
Mr. Leland, on the other hand, is deliberately acting more cautiously. “I saw firsthand how the introduction of bad technology can quickly deteriorate customer relationships,” he said.
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