AI is shrinking the knowledge gap between agents, consumers

Artificial intelligence is poised to shrink the long-standing knowledge advantage real estate agents hold over homebuyers and sellers, according to Michael Kratsios, former President Donald Trump’s science and technology advisor. Speaking at the National Association of Realtors’ midyear conference in Washington, D.C., on June 15, Kratsios warned that AI will "dramatically uplift" consumer knowledge, narrowing what he called the "asymmetric knowledge" gap. He predicted that agents embracing AI tools will gain a competitive edge, while those resisting risk stagnation. Kratsios cited data from fintech firm Ramp showing businesses investing heavily in AI more than double their revenue, while laggards see flat growth—a trend he likened to a 'K-shaped economy.' He urged real estate professionals to adopt AI as a 'superpower' to compete with larger players, emphasizing that universal tools exist to improve efficiency, though they require testing and refinement. Regulatory challenges remain a hurdle, with over 1,800 AI-related legislative proposals across U.S. states, most at the local level. Kratsios advocated for a national AI framework to streamline compliance, warning that navigating 50 different state laws could stifle innovation. He acknowledged the need for regulations to prevent cybersecurity risks but stressed balancing innovation with risk management. Panelists at the conference highlighted the tension between AI’s potential and legal uncertainties, noting that realtors must comply with state and local laws while adopting new technology. Kratsios suggested that early adopters of AI-powered tools in real estate will thrive, provided they adapt quickly to evolving regulations. The discussion underscored the urgency for the industry to integrate AI while addressing ethical and legal concerns.