Human Judgment Remains Crucial in Million-Dollar Real Estate Decisions Despite AI Advances

Written by:

Rudi Davis

Date:

06 Oct 2025

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Despite rapid advances in artificial intelligence, the technology isn’t ready to handle high-stakes real estate transactions, according to a leading industry technology educator who argues that AI’s tendency to “hallucinate” makes it too risky for major financial decisions.

Craig Grant, CEO of The Real Estate Technology Institute, says AI’s documented issues with accuracy and reliability make human oversight essential in real estate transactions. “Sometimes the content it creates is flat out incorrect. And there’s a huge issue with hallucinations, where it just makes up information,” Grant explains.

The Million-Dollar Risk

Grant, who speaks at over 150 real estate events annually, draws parallels between real estate and other high-stakes professional services. “If my life is on the line, I want a competent doctor involved. If my livelihood’s on the line, I want a competent lawyer. And if my entire life savings and investments are on the line, I want a competent real estate professional, not a piece of software that lies,” he argues.

This perspective challenges recent claims from tech startups suggesting AI could eliminate the need for human agents entirely. Grant believes such predictions fundamentally misunderstand the complexity of real estate transactions.

The Human Element in Decision-Making

According to Grant, while AI excels at automating routine tasks, it lacks the judgment needed for complex real estate decisions. “I think menial jobs, ones that can just be automated, those kinds of jobs definitely are at huge risk. But when entire life savings are on the line, it’s a different story,” he notes.

He points out that real estate professionals bring crucial human elements to transactions that AI cannot replicate: emotional intelligence, negotiation skills, and the ability to navigate unexpected complications.

Industry Evolution vs. Revolution

While Grant doesn’t see AI replacing agents, he does predict significant industry changes. “The industry was bound to have somewhat of an attrition no matter what,” he says, noting that currently “the top 10% make over 90% of the revenue.”

He believes this consolidation will accelerate as the industry evolves toward team-based models. “There was already a move towards teams versus individuals. And the big brokerages keep getting bigger,” Grant observes.

The Path Forward

Grant, who helped develop NAR’s ePro certification, advocates for a balanced approach to AI adoption. While warning against over-reliance on AI for critical decisions, he emphasizes that agents must still develop AI competency to remain competitive.

“I think we’re about to enter a new generation, not based on age, but by AI competency,” he predicts. This suggests a future where successful agents combine human expertise with AI-enhanced capabilities, rather than being replaced by technology entirely.