Buying a home is often the most significant financial transaction for many individuals, carrying both great rewards and risks. To ensure their clients are well-protected, the lawyers at Perley-Robertson, Hill & McDougall LLP/s.r.l. proactively address potential issues. Previously, some of the main risks involved bidding wars and discovering hidden problems after waiving a home inspection.
The real estate industry, similar to others, is now experiencing disruptions caused by artificial intelligence (AI) technology. This has raised awareness among lawyers like Matt Mayo, a real estate associate at Perley-Robertson, Hill & McDougall LLP/s.r.l., who emphasize the importance of understanding AI usage by professionals involved in the home buying process.
Mayo emphasizes that in a competitive market where bidding wars and low housing inventory prevail, it becomes crucial to ascertain if the individuals you are working with – such as realtors, mortgage brokers, house inspectors, and lawyers – are incorporating AI in their practices. It is essential to understand how AI is being utilized, rather than replaced, to assist these professionals. AI, in its simplest form, is an algorithm – a set of instructions – created by humans who introduce their own biases and human error. Mayo suggests that AI is suitable as a supportive tool for professionals, similar to marketing or an AI-driven chatbot that addresses basic inquiries.
Comparing recent technological advancements, Mayo illustrates how AI functions as a complement and not a substitute. When asking real estate professionals about their AI usage, it is crucial to ensure that it is employed to support their role and not replace it entirely.
Currently, there are certain limitations AI faces. The accuracy and currency of AI-generated information depend on human input in terms of database and algorithm. Furthermore, AI lacks gut feelings, intuition, and the ability to perform a sniff test. Thus, AI must not supplant any tasks that a human can perform in this context.
Another concern regarding AI implementation relates to the allocation of risk. Professionals utilizing AI for tasks such as fraud detection, interpreting complex trade terms, or conducting research can benefit from the technology while potentially transferring the associated risk to their clients.
Aspects of work that require direct handling by professionals include client engagement, research, fraud detection, interpretation of legal documents, due diligence, and the application of expert knowledge to individual client circumstances. Complex conversations cannot be effectively held with AI; clients seek the expertise and guidance of trained, licensed, experienced, and accountable professionals when it comes to complex matters.
In summary, when seeking professional assistance, it is important to find someone who possesses human intellect and expertise, as clients pay for the skills and knowledge of professionals rather than AI.
The home buying process involves various stakeholders, and it is crucial to ascertain that professionals who are trained, licensed, experienced, and accountable handle the necessary tasks, ensuring the protection of clients’ interests.
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