Artificial intelligence has become a familiar presence in the real estate field.
The tools continue to grow, and so do the expectations. Every conference agenda, vendor pitch, and boardroom conversation now inevitably includes AI. Brokers feel pressure to do something (often quickly) for fear that standing still means falling behind.
However, many brokerages investing in AI today are failing to build a lasting advantage. They are accumulating tools, not abilities. And in many cases, they are quietly wasting money.
The problem isn’t that AI is overhyped. That means they are being hired without discipline.
The cost of chasing shiny objects
The first mistake brokerages make with AI is treating it as a category rather than a business tool.
Leadership teams hear about new AI products like CRM assistants, chatbots, autowriters, and website widgets and ask where it fits. Pilots have been launched, licenses have been purchased, and adoption is being promoted, but the results are ambiguous.
AI tools that are not anchored to a clearly defined operational or revenue problem almost always fail to deliver value. It may look impressive in a demo, but it doesn’t hold up when it comes into contact with a real workflow. Worse, the system becomes even more fragmented, adding cognitive and operational overhead to an already complex organization.
Wise operators resist this urge. They don’t ask, “What can I do with this AI?” They ask, “What is slowing us down, costing us money, or limiting our scale today?”
If your AI tool doesn’t specifically address known bottlenecks like agent productivity, support load, marketing efficiency, lead conversion, or training scalability, it’s not an investment. It’s a distraction.
AI does not replace the foundation. it amplifies them
The second, more expensive mistake is trying to layer AI on top of a weak foundation.
AI is not a substitute for clean data, consistent processes, or operational clarity. In fact, their absence is inexorable. Fragmented systems, inconsistent workflows, or models trained on outdated documentation only automatically create chaos.
Brokers looking to reap the benefits of AI in the future must first do the modest work of building a strong foundation in the current situation.
This means consolidating systems rather than proliferating them. This means establishing a trusted source for transactional, contact, marketing, support, and brokerage data. Workflows must be clearly defined so that machines can understand them. More bluntly, it means treating data as an asset rather than as an output.
Brokerages that are quietly preparing for AI advantages aren’t buying most of the tools. They are modernizing their infrastructure. They build centralized platforms, normalize data, and document operations to ensure intelligence, whether human or artificial, works.
When AI finally matures as a true strategic tool, these companies won’t be in a rush to retrofit. On the contrary, they will be ready.
Insight is the true competitive advantage
The AI vendor landscape is growing faster than any brokerage firm can reasonably assess. Many offerings are sincere. Many are experimental. Some companies are just legacy software companies that have just been rebranded and given a new look and label.
For this reason, insight is a core leadership skill.
Smart intermediaries evaluate AI vendors the same way they evaluate partners. In other words, look beyond functionality to the fundamentals.
Are the products integrated cleanly, or are separate silos created? Does it solve a permanent problem or invent a new workflow? Is the company building for durability or optimizing for short-term promotion?
Most importantly, they ask whether the value proposition will survive after the novelty wears off.
AI needs to reduce friction. Decisions should be made clear, not vague. It should make your organization less busy, simpler, more scalable, and more resilient.
The companies that win will not be the first to implement AI. They probably adopted it intentionally.
Building for what comes next
The irony of today’s AI moment is that the most important decisions brokerages can make right now aren’t about AI at all. They are about systems, discipline, and focus.
Brokers that stop chasing tools and start building capabilities will find themselves well-positioned for everything the next wave brings, including more advanced automation, predictive intelligence, and entirely new operating models.
For brokers and operators, AI conversations are ultimately a matter of control.
Capital, attention, and organizational trust are finite resources. Effective implementation requires resisting newness in favor of rigor, including clear problem definitions, disciplined vendor evaluations, and foundational investments in systems that grow over time.
AI will almost certainly reshape the way brokerages operate, but impatience will not pay off. The companies that will emerge stronger will be those that view AI as an extension of sound operational design, rather than those that treat AI as a marketing signal or defensive posture.
In that sense, the competitive advantage lies not in artificial intelligence itself, but in management judgment that is consistently applied before the hype dies down.
AI is not a shortcut to competitive advantage. It’s a multiplier. And like all multipliers, it rewards those who already have something solid to amplify.
Throughout this month, we are focusing on ‘New Mediation Strategies’. How securities companies operate in 2026 will be no different than before. From corporate giants to finicky indies, we map the new playing field and talk to brokerage leaders across the country about what’s working now and what’s next.
Zane Burnett is Vice President of Digital Strategy at The Agency. Connect with him on LinkedIn.
