Wake up and “Smell” the AI
Why it is Imperative to Implement Artificial Intelligence into Your Business
By Richard Katz
Artificial Intelligence is here, and it is a watershed moment with impacts that will be greater than the advent of the internet and the invention of the personal computer.
The difference is the adaptation will be much faster. You can already feel the disruption, but shortly, the AI revolution will be beyond our current comprehension. Sticking your head in the sand and not doing something right now is a recipe for your business to get left behind and become obsolete. It is time to be relentless and proactive in order to succeed and stay competitive in this ever-changing new world.
What is Chat GPT?
Only six months ago, on November 30, 2022, the infamous and life-changing Chat GPT launched. Chat GPT describes itself as “an advanced language model developed by OpenAI and is based on GPT (Generative Pretrained Transformer) architecture, which is designed to generate human-like text based on the input it receives.” I am not sure that the definition works; if I were to define it, I would say it is a conversational platform with limitless potential that learns every millisecond. There have already been new versions with improved and exponential results; just imagine what will happen in another six months. Overwhelmingly, many other AI models, robots, software, etc., are seemingly introduced daily, and Google will soon launch multiple AI products as they have an all-hands-on-deck approach.
Once you delve a bit into the capabilities of this system, it is incredible what it can do and achieve. For instance, the other day, the director of our marketing department asked me to approve a marketing piece. After glancing over her material, I thought the phrasing was not resonating with me. Ordinarily, I would take an hour to read through it and suggest corrections and revisions. However, this time, I experimented and transferred the entire text onto Chat GPT and asked the AI to improve the piece and make it sound more effective and appealing. In less time than it took me to write this sentence, Chat GPT rewrote it. However, the striking fact was that it was so much better than the original. I tweaked it a bit and sent it back to the marketing department with the entire process taking about 5 minutes. This process previously would have taken about one hour. With the extra 55 minutes I saved, I used that time for more productive work geared toward growing the business.
AI in the Construction Industry
I recently read an article about AI and its utilization in the construction industry. Before reading the article, I could not imagine how AI could transform such a labor-intensive, hands-on business. However, this article discussed the birth of Digibuild, a supply chain and building material software company that now has integrated Chat GPT into its process. Before Chat GPT, contacting only five or six suppliers was a tedious endeavor that would require an investment of multiple hours. Enter Chat GPT; the task is now a breeze. As Digibuild commented proudly, “We can talk to 100 suppliers in one minute versus maybe a handful in a couple of hours.” Just think about the implications of this technology: it will revolutionize the way suppliers are located and communicated with and save a tremendous amount of time and money.
On one job, a construction company in Virginia needed closet shelving, and the builder was only able to find one supplier with a cost of $150,000. Utilizing Digibuild powered by Chat GPT, they found a supplier in the Midwest for $70,000, and the shelves were delivered within weeks. As a construction lender, should I demand that our clients utilize a service like Digibuild to ensure they get the best prices and prevent them from borrowing more than necessary? It is definitely something to think about.
And in thinking about it further, can Chat GPT or another AI model perform a feasibility study of a construction budget that is more accurate than the current manual standard of having a person look through the line items and give their assessment? AI has real-time access to infinite data to accurately assess in contrast to a human being that may myopically look at their view of a budget. Think about the time saved in getting an instant result from this study through AI, where today, a typical feasibility study takes us about three to five business days to get returned.
AI in Underwriting and Valuations
Underwriting today has come a long way, but there is still a significant human element to analyzing the information; AI has a lot of room to improve the process and make it more efficient. The underwriting process with the aid of AI can be stunningly accurate and allow clients to be served quickly with much faster turn times as AI does not have lag time; its results are almost instantaneous. Also, AI is making significant strides in fraud detection and prevention in lending. Every year billions of dollars are lost on fraud in lending. Will AI be able to prevent a substantial portion of that? I believe it will be instrumental in helping to detect issues within a file or outright fraud.
For instance, Ocrolus.com is one of the products that can detect documents that were tampered with that the naked eye cannot see. Through AI and machine learning, it quickly detects altered documents to falsely place the borrower in a “better” light. This detection will flag these edits and usually can show what the document originally displayed and expose the fraud before it ever becomes a problem. Other AI products can review title reports for lenders and aid in determining what are red flags and necessary changes needed to ensure the loan you are offering has the title insurance you need. These tools will only improve as the AI learns.
One of the issues for lenders is valuations and how values will change as interest rates go up or down. We all know that appraisers are human and make mistakes. Just order two appraisals on the same property utilizing two different appraisers, and the differential in value they come up with is likely beyond any standard deviation. AI is unemotional and will learn to use “like” properties and analyze all potential comparables instantly. Additionally, AI can predict a property value’s direction and predicted value in a given period. So, if you are originating a one-year loan, it can accurately predict the value at the end of the year. One of the products that are working with this concept is zipsmart.ai.
Do Not Get Left Behind
This article just scratches the surface of how AI will change our world and your business. Avoiding AI is not a choice. It is imperative to learn about AI and implement it into your business before it is too late.
I am personally taking several steps to stay relevant. I am voraciously reading everything I can and watching YouTube videos about AI. I also review different AI-driven products/software weekly to see how they can enhance my business. Thinking about your business and how it relates to AI is imperative.
Wake up and smell the AI.
