AI chatbots have been all the rage this year and have revolutionized the way that people work. More and more real estate professionals are using innovative tools to streamline their work and improve efficiency. One of the most exciting developments in recent years has been the rise of natural language processing (NLP) technology, which allows machines to interpret and respond to human language.
Most recently, the ChatGPT explosion, has accelerated the AI market’s growth, generating an impressive one million users in just five days. To put that into perspective, it took Netflix three and a half years, and Facebook ten months to reach that many users.
In this blog post, we’ll explore the exciting possibilities of ChatGPT and other AI bots and how this innovative technology can take your title business to the next level.
What is ChatGPT?
While chatbots have been around since 1966 starting with ELIZA, the current “OG” in the space, ChatGPT launched in November 2022. It’s owned by OpenAI, and is a free, publically available tool with a paid subscription version for upgraded features. ChatGPT uses natural language processing tool to pull information from across the web like:
- Business plans
ChatGPT isn’t the only automation tool from OpenAI that is dominating the market. DALL-E 2 is another AI system that can create realistic images and art from a description in natural language. For example, take a look at the result from the prompt, “cartoon image of a real estate professional using an artificial intelligence chatbot”
Generated using DALL-E 2, a product owned by OpenAI
In seconds, the tool is able to create an image based on its training data that reflects the prompt to the best of it’s ability.
How Do You Use ChatGPT?
Step 1: Go to chat.openai.com
Step 2: Create a free account or Login
Step 3: Type in your prompt
Use #1: Simplifying Complex Ideas
Title agents can ask ChatGPT any questions and receive immediate answers about the title industry, regulations, or procedures.
Here are a few ways title agents can ask bots use ChatGPT to simplify concepts:
- Explaining legal terms and processes: Title agents can input legal terms or concepts that may be confusing to clients or new employees, and ask ChatGPT to explain them in simple terms. Complex processes such as the home buying process or the title insurance process, can be customized towards who the information is geared towards (see example below).
- Providing examples: Title agents can ask ChatGPT to provide examples of specific scenarios or situations, which can help clients or employees better understand how certain concepts or processes work.
- Creating educational content: Title agents can use ChatGPT to generate educational content, such as blog posts or articles, that simplify complex concepts or processes for a wider audience.
We put ChatGPT to the test to see how well it can explain some of our industry’s complex terminologies:
Prompt: Explain 1031 Exchange to a five-year-old
“A 1031 Exchange is like trading your toys with your friends.
Let’s say you have a toy car that you really like, but you want a toy train instead. Your friend has a toy train that they want to trade for a toy car. If you trade with your friend, you can get the toy train you want, and your friend can get the toy car they want.
A 1031 Exchange is like that, but with property instead of toys. Let’s say you have a piece of property, like a house, that you want to sell. Instead of selling it and getting money, you can trade it for another piece of property, like a different house or a piece of land.
When you trade the property, you don’t have to pay taxes on the money you would have made from selling the property. It’s like trading your toy car for a toy train without having to give any money to your friend.
A 1031 Exchange is a way to help people who own property to trade it for something else they want without having to pay taxes.”
Use #2: Assisting with Tasks
ChatGPT can automate certain tasks, such as document preparation or data entry, to help title agents reduce the workload and save time, allowing them to focus on other important aspects of their work.
Other tasks include:
- Customer service: ChatGPT can assist customers with questions and concerns in real-time, 24/7. It can handle a high volume of inquiries and provide personalized responses.
- Sales and marketing: ChatGPT can engage with customers to provide information about products or services, answer questions, and even suggest related products or services based on the customer’s interests.
- Training and education: ChatGPT can provide training and educational resources to employees, customers, or partners. It can answer questions, provide examples, and offer guidance on various topics.
Use #3: Generating Documents
ChatGPT can help title agents generate documents, such as contracts, deeds, and purchase agreements, by providing templates or guiding them through the process step-by-step.
Here are a few ways ChatGPT could be used to generate legal documents:
- Providing templates: ChatGPT can provide templates for common legal documents, such as contracts or deeds, that can be customized by the title agent to fit the specific needs of their client.
- Generating basic documents: ChatGPT can generate basic legal documents, such as letters or notices, that are required in the closing process.
- Answering document questions: ChatGPT can answer questions related to legal documents, such as how to fill out certain sections or what language to use in a particular clause.
- Offering suggestions: ChatGPT can suggest changes or additions to legal documents based on the specific needs of the client or transaction.
- Streamlining the review process: ChatGPT can help title agents review legal documents more efficiently by highlighting potential errors or inconsistencies.
Important note: While ChatGPT can provide helpful suggestions and templates, it should not replace the expertise of a licensed attorney or the need for legal review of important documents.
Use #4: Analyzing Data
Have long documents to go through but no time? ChatGPT can provide the Sparks Notes version. Simply copy-paste the document and ask for a summary.
“Hey can you please summarize this listing for me in 5 bullet points:
“Sure, here’s a summary of the listing you provided in 5 bullet points:
- Address: 109 N Pecan St, Gardner, KS 66030
- This is a single-family home with 3 bedrooms and 2 bathrooms.
- The home has a total of 1,380 square feet and sits on a 0.27 acre lot.
- Features include central air conditioning, a two-car garage, and a fenced backyard with a patio and fire pit.
- The asking price as of March 30, 2023 is $265,000.”
Overall, ChatGPT can help real estate professionals save time and provide relevant information
Use #5: Fraud Detection
ChatGPT can detect common patterns found in phishing emails by using a specialized algorithm to detect spam or phishing emails, reducing exposures to threats and time managing unwanted messages.
Can you detect fraud in this email?
dear netwrk user,
This email is to infrm you that your password will expire in 24 hours. Follow this link to update.
“Yes, that email has several signs that suggest it may be fraudulent. Here are some of the reasons:
- The email is generic and not addressed to a specific person, which is a common tactic used by fraudsters.
- The email contains a sense of urgency, urging the recipient to update their password within 24 hours. This is another common tactic used by fraudsters to create a sense of panic or urgency in the recipient.
- The email contains a link to update the password, which could potentially lead to a phishing website designed to steal login credentials.
- The email does not contain any identifiable information about the sender, such as a company name or contact information, making it difficult to verify the email’s authenticity.
It’s always important to be cautious when receiving emails like this, especially when they contain links or requests for personal information. It’s a good practice to verify the sender and the content of the email before taking any action or clicking any links.”
What are the Limitations?
It’s important to approach AI chatbots with a willingness to experiment. While ChatGPT is a powerful tool that can provide valuable assistance to title professionals, it is still a new technology that is susceptible to limitations, just like any other technology. It’s recommended to be used in conjunction with other resources, such as human expertise, to ensure accurate and comprehensive responses. Known limitations include:
Limited Context Awareness
ChatGPT has limited context awareness and cannot understand the full context of a conversation. As a result, it may misunderstand or misinterpret certain questions or responses. While it can recognize certain patterns and relationships between words, it may not always understand the larger context in which those words are being used. For example, if a user asks a question about a specific real estate law, ChatGPT may provide an answer based on its training data, but it may not fully understand the nuances of the legal context or the specific details of the user’s situation.
Additionally, ChatGPT may struggle with understanding language that is highly specific or technical in nature. For example, if a real estate professional asks a question about a highly specialized legal concept, ChatGPT may not be able to provide an accurate or nuanced answer.
Limited Knowledge of Recent Events
ChatGPT’s knowledge base is based on training data up until 2021 so it does not have access to real-time or current events. This could change in the future as it continues to learn from new data and updates, but it may take some time for these updates to occur and become available to users. To overcome this limitation, it is important for users to understand the timeframe of ChatGPT’s training data and to seek out more current information from other sources when necessary.
While there are still limitations to this technology, the potential benefits are undeniable.
By embracing innovative tools like ChatGPT, real estate professionals can stay ahead of the curve and provide better service to their clients. Using AI chatbots can help streamline your work, improve your knowledge, and help you navigate the complex world of real estate and title insurance more effectively.
Lastly, don’t be afraid to have fun with it! Ask for a joke, a poem, or (my favorite) a custom song.
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