The rise of artificial intelligence and large language models (LLMs) is forcing real estate data providers to confront a pivotal strategic decision, according to Jonas Bordo, CEO of rental marketplace Dwellsy. The industry faces a challenge similar to what the music industry encountered with Napster: how to adapt to new distribution channels without undermining their business model.
“Our data is the only real authoritative source for rent data, so we want people to be able to access the authoritative answers. However, we can’t just give it all away,” Bordo says. “Our business is based on people wanting to buy our data.”
The emergence of AI platforms as potential distribution channels presents both opportunities and threats. Bordo argues that companies must find a balance between accessibility and value preservation.
“We need to find the freemium option where we can give away enough that you can get your teaser through ChatGPT, but then you can find out, okay, I really do need to buy this product to accomplish my goal,” he explains.
Bordo draws parallels to the music industry’s response to digital distribution: “The music industry missed a huge opportunity when Napster came out, because they turned around and sued a new distribution channel that they didn’t know how to use, and also sued their customers.”
Instead of fighting the technology, Bordo suggests looking at successful adaptations to technological change. He points to the relationship between Google and Expedia as a model: “You search for information about flights from San Francisco to New York on Google, and you’re put into a process to not only find the exact information that you’re looking for, but buy that flight.”
Dwellsy is pursuing a multifaceted strategy to stay competitive in the AI era. The company is selectively sharing only non-sensitive data, while protecting the proprietary insights that drive its core value. It is also developing premium, value-added services that go well beyond raw listings data, ensuring customers have reasons to remain on its platform.
At the same time, Dwellsy is exploring partnership models with emerging AI platforms to broaden reach without ceding control. Finally, the firm is prioritizing user experience, aiming to make data accessibility an enhancement to its service, not a replacement for it.
The challenge, Bordo suggests, lies in harnessing AI’s reach while maintaining data value. “We’re trying to think through, can we work with the LLMs in a similar kind of way where we’re able to harness that traffic and give people an amazing experience via the LLM but still ultimately be providing the service that we’re designed to provide?”
This approach requires rethinking traditional data distribution models while ensuring sustainable business practices. “We want to be the partner, and we want people to be able to access the authoritative answers,” Bordo notes, while emphasizing the need to maintain the value of their comprehensive data services.
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