How artificial intelligence can improve real estate valuation through better data and communication

Abstract

Real estate valuation is becoming increasingly dependent on large and complex data sources. Traditional appraisal practices often rely on fragmented data, subjective judgment, and methods that may not adapt quickly to changing market conditions. Artificial intelligence (AI) can improve valuation accuracy and support more informed decision-making, but it should be used to assist rather than replace professional expertise. At the same time, disconnected data systems and limited interpretability can reduce the usefulness and trustworthiness of AI-driven results. Explainable AI (XAI), integrated real estate data systems, and modern business communication techniques can help address these issues by making data more accessible, transparent, and understandable to investors, appraisers, and policymakers. Together, these developments can improve property valuation and investment decisions while encouraging more transparent and responsible use of AI throughout the real estate industry.