00:00There's been a lot of talk recently both touting the benefits of AI but also the dangers of it as
00:04well, as artificial intelligence is likely coming for a lot of our jobs. However, now experts say
00:10it might also be able to predict the future, at least in regards to how much your home might be
00:14worth. MIT AI researcher Carlo Reddy recently wrote for the Financial Times, an AI tool he and
00:19his colleagues have been developing they call the real estate bot is an algorithmic tool that has
00:24been using deep learning models, Google Street View data, and home prices in the Boston area
00:28to learn about how real estate changes. Reddy says that other property worth estimators like Zillow
00:33aren't actually that good at predicting home prices. He and his colleagues' tool, however, he says has
00:38striking accuracy. According to him, quote, when other variables were added, such as structural
00:43information and neighborhood amenities, our algorithm was able to make very accurate predictions of how
00:48prices would change over time. This could be a boon to prospective homebuyers who want their home to
00:53be a big part of their investment future. However, Reddy admits there could be problems as AI tools are
00:58known to be fallible, especially with regards to social issues, and the tool could undervalue homes
01:03in black neighborhoods. Investment companies could also use the tool to buy up a ton of homes,
01:08leaving the average buyer out in the cold.
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