Introduction to AI Technology
Artificial intelligence (AI) refers to intelligence of making technology’s work together through different machines to act or learn the intelligence level of humans (Builtin, 2022). With the power of artificial intelligence machine consisting of machine learning, natural processing language, etc. people are able to work efficiently and at a faster pace to solve varying nature of business problems (Hewlett Packard Enterprise, 2022). In today’s dynamic and fast paced world, due to advancement in AI, it has become easier for humans to build highly efficient system which is capable to perform the task on their own. This technology has proven to be worthwhile for humans for many reasons. For example, earlier humans used to possess innate knowledge on variety of things but weren’t capable to explain how varied things can be done (BRYNJOLFSSON & Mcaffee, 2017). Now, the modern AI technology has made it easier to automate variety of tasks. Furthermore, many experts across the world believes that AI would prove to be useful tool to handle wide variety of challenges that arise due to the current corona crisis or other unforeseen situation that might arise in the future.
There have been innumerable articles that suggests that it is impossible for corporates and industry professionals to resist the technological changes in order to sustain their business in this fast paced and ever- changing era (Makridakis, 2017). Many industries, businesses as well societies throughout the world have already started to take due consideration of Artificial intelligence technologies for sustaining their performance for long.
Real estate is one of the few sectors that is tangible in this virtual world. However, it is also expected to be taken over by Artificial intelligence in the next few years. Adding to this, some of the prominent business such as Compass, LoanSnap, etc. have already started to utilize AI technology to enable buyers to find the mortgage rate that is most appropriate for them for finding their perfect home (Kramer, Stang, & Nagl, 2021). This is mainly because there is wide variety of data required starting from land records, documents, purchase price mortgage loans and also size and appearance of the house, it was very much inconvenient process for the real estate agents to go to the local office to obtain the necessary information. Now, the computers are utilizing AI technology and have become very much capable to get the document required in matter of seconds.
This paper covers diverse aspects of AI and it discusses whether the continual development of the AI technology will result in loss of human’s job, which particular jobs are more susceptible to get replaced, which kinds of jobs would remain safer. Adding to this, it even highlights, what would be the effect of AI technology in determining the bay area housing price. For doing this specific research, essay has been constructed using the statement, “Impacts of continual advancement in AI technology on human job loss and effects of the same technology in determining bay area housing price”.
The industry 4.0 has evolved and has increased digitization that has transformed the manufacturing processes and the labor market (Rajnai & Kocsis, 2017). This has posed huge challenges for the society and the policy makers as the work of human workforce is reducing due to increase pace of automation that are pursued by intelligent machines This has been evident as due to increase in corona cases, more than millions of Americans have lost jobs and this has increased the threat of AI and robotic technologies to replace human job at a faster pace (Clifford, 2020).
AI Technology and Its Advantages
World Economic Forum (WEF) in their recent report has stated, that more people are at a huge risk to lose jobs by the rapid advancement of AI technology. Adding to this. World Economic forum, has predicted that automation would replace 85 million jobs by the end of 2025 (Kelly, 2020). In this regards, Bill Gates pointed out that “You cross the threshold of job-replacement of certain activities all sort of at once. So, you know, warehouse work. driving, room clean-up, that are certain in the next 20 years [will go away]”. Adding to this, some more jobs such as Accountant, factory workers, radiologist are at high risk to get replaced due to rising disruption as a result of industry revolution (Builtin, 2022).
Another study revealed that the corona crisis has increased the hardships of low wages workers and states that the jobs of black in Latin America are threatened due to rising automation specifically for customer service representative, cashier and food service employees (Semuels, 2020). However, as people have started to cope up with the changing scenario, there is higher probability that there would be collaboration of humans and technology for operating their daily activities to efficiently run and sustain the businesses for long term.
Regardless of the present scenario, many Organizations throughout the world has already started to make the needed changes in their policies in order to become proactive and embrace the latest technology. This will enable them to adapt their talented workforce and operative effectively in the future in order to minimize the risk of losing their jobs. In regards to this, the study was conducted by AI experts reveals that domestic and household task will be automated within the next ten years (Lehdonvirta, Shi, & Hertog, 2019). In addition to this, the job of accountant is at huge risk to get replaced by the AI technology as their task that includes data crunching, profit and loss evaluation, account receivable, etc. will be performed way better than humans. In the future, it is highly expected that there will be significant growth in robo-accounting.
Due to evolution of AI technology at a rapid pace, there are many jobs that are at a greater risk of being replaced as a result of AI as well as AI based advanced technologies. The industry 4.0 has evolved and has increased digitization that has transformed the manufacturing processes and the labor market (Rajnai & Kocsis, 2017). This has posed huge challenges for the society and the policy makers as the work of human workforce is reducing due to increasing pace of automation that are pursued by intelligent machines This has been evident as due to increase in corona cases, more than millions of Americans have lost jobs and this has increased the threat of AI and robotic technologies to replace human job at a faster pace (Clifford, 2020).
This new and innovative technology on one hand is improving our personal lives as well as business performance (Wang & Siau, 2019). However, on another hand it is impacting our life, mainly due to occurrence of drastic changes in our societal norms. For example: It seems impossible for digital automation to replace humans by deployment of human looking robots to teach students in classrooms (Selwyn, 2019). However, teachers throughout the world in schools as well as universities have drastically changed their teaching methods. In majority of cases, they have increasingly been found surrounded by Apps, software, platforms and other forms of AI technology to carry out their teaching practices.
Real Estate and AI
The individuals and Organizations who can eliminate the negative effects of the technology and make their job highly secured by adopting proactive approach in managing the new industrial revolution can utilize the advance technology in their favor. Many companies have already documented success by utilizing the technology as they have seen significant transformation such as it has led to increased economies of scale, increased speed and flexibility in its business processes. For instance, rigid manufacturing processes are being replaced with smart production techniques that provides real time customer choices and enables them to make purchase decision in a matter to seconds (Woo, 2020). Beside this, the AI technology has provided them added advantage to the workers in respect of marketing and sales department as they have become highly capable to personalize the experience of their service users. For instance, AI can analyze the sales calls at a faster rate in comparison to any other sales managers, who might take many weeks to do the same task. Therefore, by undertaking effective utilization of the AI technology people can get better in developing content strategies and email marketing to simplify the process.
Artificial intelligence is reshaping the jobs in every industry throughout the world. Although, some jobs are bound to be replaced but it could prove to be a valuable opportunity for humans in creation of new jobs that would require less of manual work and provide the company’s users and altogether new and improved customer experience (Crosman, 2022). This is evident as the research considers the perspective of banking industry and reveals that redundant work like data entry, filling form, will disappear and allow humans to focus on more interesting tasks. Thereby, resulting in change in nature of jobs. This is evident as the survey conducted by Accenture employees confirms that majority of people possess higher believes that AI will be beneficial for them to improve their work life balance and improve their career prospects. In this regard, research conducted in the US estimates that approximately 2.5 million people employed in financial services will be exposed to AI technology in all areas that comprises of front, middle and Backoffice that will increase the capability of the functions to increase the productivity of the Organization (Crosman, 2022).
There is no doubt that Artificial intelligence is very usual tool to automate business processes. However, those businesses which are using this technology to replace employees are likely to witness short term productive gains. This has been proven by research undertaken in 1500 companies that reveals that firms can increase their performance at a continual level when human and computers are able to integrate and work together (Wilson & Daugherty, 2018). This acts as a collaboration between AI and humans to strengthen each other’s skills. For the former i.e., human’s key skills comprise of teamwork, leadership, social skills and creativity. While for the later i.e., AI skills comprises of scalability, speed as well as quantitative capabilities. For the business to truly grow as well as sustain its practices in today’s fast-paced and competitive era requires both these capabilities.
AI Technology and Human Job Loss
Human must lay enhance focus on learning new and advance technologies and embracing it. In present scenario, it does not seem possible, but then also AI can prove to be one of the biggest boons for the humans. This is because they need not waste their crucial time in doing repetitive tasks and focus on complex activities that would be rewarding for their career. For doing this, it is must for human to be well informed about the latest technology being used in the businesses and particularly their industry to become highly capable to create world’s biggest innovation that nobody has ever even thought about. However, if humans are not serious in adapting with the new environment than the continual advancement in AI technology will make it way smarter than us to an extent that our work will get totally replaced by the technology. For example: Self-driving cars, robotic waiters, etc. which seems uncommon in today’s time will become part of our routine lives in coming years (BRYNJOLFSSON & Mcaffee, 2017).
The wide spread fear of job loss due to the technological changes has yielded positive result in creation of more job than that can be destroyed. This is because only particular task can be automated and becomes cheaper as well as faster, humans are required to do other important functions too. Those individuals or group of individuals who are capable of utilizing internet widely and are ready to take entrepreneurial risk to innovate their offerings can gain immense benefit of AI intentions. This will enable the humans in providing wide variety of opportunities for improving their capabilities and even act as a preventive measure to safeguard themselves from unemployment and greater wealth inequalities (Makridakis, 2017). This is evident as the study conducted highlights the merits of the technology for human resource management in growing rapidly. This is because the technology will support HR professionals to enhance their concentration on critical aspects such as job replacement, decision-making, recruiting, training, and job performance (Vrontis, Tarba, & Pereira, 2022).
Artificial intelligence tools are way faster than humans but they don’t possess domain skills and valuable expertise that are very much needed to solve problems of different nature. For instance, startup in case of hairdresser have tried to use various machines that can automate their jobs and has even gain success in creating hair dressing machines. However, it requires complex problem-solving skills that is difficult to automate even after utilizing smart and advanced A.I technologies.
Apart from this, the services that requires emotional support and guidance such as healthcare workers, therapist, caretakers, etc. requires to create personalize relationship with their customer and it is impossible for machines to replicate emotions such as empathy in a similar way as human does. (Grothaus, 2018). The major possible reasons behind this are that for receiving value addition as a result of these services isn’t concerned with providing universal solutions and varies from person to person due to various reasons that makes an individual highly satisfied with the specific service (Pettersen, 2018). For instance, a doctor possesses high emotional intelligence and is capable to understand the specific emotions of his patient. This enables him to find the most appropriate solution that makes the patient trust his services and respond effectively to the treatment. Thereby, making him highly contented with his specific services.
Jobs at Risk Due to AI Technology
Artificial intelligence chatbots are used by various company and particular the e-commerce sector and service industry to provide support to company’s customer base. This is mainly done through voice or text-based support to solve their particular query or issue that arises for utilizing their specific services. The study conducted in this regard, reveals that chatbots are proficient than human population and are approximately four times more effective than the inexperienced worker. However, as soon as customers comes to know that they were conversing with the machine and not human, than they have drastically reduced their purchasing. The major reason behind this is that majority of them perceives bots as machine who aren’t knowledgeable and empathetic (Luo, Tong, Fang, & Qu, 2019).Therefore, irrespective of the advancement in technology, it is still quite difficult for machines to replicate human emotions and enable the customers to feel highly valuable in a way similar to humans. Apart for this, others jobs that are likely to remain safer includes fiction writing, engineering, science, computer science as these jobs requires individual to possess strong problem solving and reasoning skills.
There are various studies that suggests that due to changes in technology that are occurring on a continual level, that types of jobs that are available would change along with pay rate of the specific jobs. For instance, in the last decade polarization effects was seen wherein higher income group witness disproportionate increase in their income, whereas lower income group received disproportionate decrease in their wages. However, there was not much change in wages received to that of middle-income groups. This states that there is no guarantee that the balance in creating new jobs would always be even and it is very much possible that only fewer jobs would be left. Nevertheless, that the interplay between human and machines supported computer systems can enable to minimize these risks.
Smart real estate companies must improve their adoption practices of the new and advances technologies like AI in order to be highly efficient in performing their roles better by furnishing the most appropriate information required by all their stakeholders. For instance, the company need to utilize the technology to determine their customers housing needs that provides the real estate agent quicker response in determining the resources that are needed to supply the information required. This will be beneficial for the management in providing high quality information to their customers and maximize the satisfaction level of their customers (Ullah, Wang, & Sepasgozar, 2018). Apart from this, real estate markets are of prime economic importance and their price needs to be accurate and requires prior assumptions as per the features of the specific properties. This is evident as the research conducted in this regard showcases that technology could be quite flexible and easier for the manager in determining housing prices. This can be elaborated as the technology acts as a supportive measure and considers its various aspects that comprises of several structures, locations as well as socio-economic conditions to accurately determine housing prices (Kramer, Stang, & Nagl, 2021).
Policy Changes to Embrace AI Technology
In the present scenario, real estate industry is lagging in comparison to other industries in making effective utilization of the AI technology. This has increased the discrepancies within the sector that has caused delay in transfer of useful information to the customers and increased the concerned of those real estate companies who are operating their business through online platforms. This has resulted in negative consequences for their services in various ways that includes larger vacancy rates, post occupancy regrets, etc. among the consumers. In addition to this, the recent corona crisis has increased inequalities in urban housing. This can be further elaborated as gap between demand and supply has increased as the pandemic situation has caused housing prices in soaring high. This is evident by taking the case of Canada as Toronto and Vancouver has become most unaffordable housing market throughout the world. One of the major reasons for this is that the real estate is continuing to deploy traditional approaches in order to solve their issues.
In order to address these issues and other similar issues, real estate sectors need to implement smart and advanced AI technologies and can utilize the concept of real estate stakeholder technology acceptance model (RESTAM). This will be beneficial for the managers to reduce the issues of the various stakeholder and strengthen their relationship to sustain their business for long term. The supply of house sales which have drastically reduced can increase as the advanced AI technology can help the agents to find homes that are likely to sell within the next 12 months. For instance, the management of a real estate company can make effective utilization of the software to process the required information in a timely manner through extracting information by automating the processes with the support of AI technology (Bodenbender, Kurzrock, & Muller, 2019). This will automate their business process that comprises of data validation, data evaluations documentation review, benchmarking and similar analytical applications. This in turn be beneficial for brokers to extract the data associated with house such as the data of house that was last sold, duration for which house was occupied rate at which homes are sold in that particular area, etc. to increase the profitability of the real estate company.
It is crucial for the real-estate market to survive their business practices in this ever-changing environment. The US Company Zillow was able to offer cash discounts on their price estimates when the property rates in the US market soar higher (Boynton, 2022). This has been possible as the company was able to update their algorithm to make their rates more accurate to increase their home buyers. In addition to this, the company offered 90000 property owners who were eligible to receive automatic offers to purchase house (Johnson, 2022). Adding to this, the company has been able to upgrade its home prices with the support of AI neural network that has increased the software’s capability similar to that of human’s brain. This was beneficial for the company to close the sales within a week. Therefore, it is essential for the management to learn and embrace new AI algorisms in getting better at determining property rates and analyze the valuation that have a large influence of nearby homes.
Future of AI Technology
The real estate sector is even undertaking deep learning approaches to forecast the property rates in the same area. This has been evident as a study revealed that long short-term memory model (LSTM) has enabled the agents in identifying variance in the property rates. This is because it has forecasted the rates by taking due consideration of race, age of resident, land use, environmental factors, neighborhood location, etc. (Jiao, Choi, & Xu, 2021). This has been beneficial for countries like Austin and USA to retain their property rate rising curves as the management was able to identify which particular areas experiences increase or decrease in the property value.
The real estate company can get better in designing home price estimation system that presently rely on textual data like neighborhood area and number of rooms. This enables the agents to determine the final price of the property by visiting the house and accessing its visual features. In order to eliminate these difficulties for visiting the customers to their physical locations, the company needs to spend quite good amount of time in training their neural network. This can be done by combining both visual and textual attributes of the house that can enable the real estate managers to outperform their AI network for achieving higher performance (Moustafa & Ahmed, 2016).
Artificial intelligence will definitely lead to increase in level of productivity, advancement in job roles and enable the humans to increase their skills to safeguard their job roles. This in turn will result in growth of the economy, still these gains will not be evenly distributed. This is because rural community already is prone to high level of job insecurity and they work outside of digital environment. In addition to this, they continue to struggle due to insufficient finance, policy and demographics (cultural and physiological barriers) (MacClelland, 2020). In order to make it easier for small businesses to adopt the AI technology, it is essential to provide pre-build software that makes it easier for humans to implement the technology. This will enable many businesses to gain the immense benefit of the AI technologies to operate their daily business operation.
In conclusion, it can be said that continual advancement in AI technology has improved intelligence of machines to act like human. The recent corona crisis has further provided added advantage to the AI and other advanced technologies as it caused job loss for millions throughout the world. Adding to this, it has been detailed above that various types of jobs that are repetitive are bound to get eliminated in the coming years. Also, unnecessary cost can be avoided by employing latest and updated AI technology to achieve higher efficiency and faster performance in lowest possible time. However, some human jobs that are detailed above will remain safe as machine can try to act like human but is very much difficult for machines to behave in an exact similar way that human does. This is because customers want to connect emotionally with the specific service and want to enhance their personal satisfaction that isn’t possible for the machine to perform. This is because it varies from person to person and isn’t universal solution. Beside this, in the times of continual change as a result of industrial revolution it has been explained above that collaboration of human and technology will be very much beneficial for the Organizations to sustain their performance for long period. In context of real estate sector, it has even been provided that advanced artificial technologies have huge effect in determining housing bay prices. It is crucial for the industry to adapt their operation by utilizing the most advanced and updated technologies. This will enable them to tackle various issues specified above to maintain their stakeholder relationship to enhance their profitability in today’s ever-changing era. Finally, it is even important to provide the necessary resources particularly to the people living in rural areas that mainly includes the funding, accessibility and awareness about the new AI technologies to enhance their capabilities to minimize the perils of losing their jobs.
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