AI Hype Cycle

December 27, 2017 P Thaz Knowledge of Variation 1 minute, 4 seconds

The AI hype train is off the rails. The hype is everywhere and every company is working on something to do with AI.

Real Vectors uses AI in a measured way but not in the traditional sense everyone looks at AI and Machine Learning. Our focus is on harnessing domain expertise and superior (timely) decision making using heuristics. We deliberately subordinate reliance on (PMS) data in lieu of expert judgement with the understanding that variability and uncertainty are large factors at play.

This is quite different than using "big data". The harsh reality is that the majority of real estate companies are just not ready to produce, handle, store, or use massive amounts of data.

AI techniques draw conclusions from large masses of data, a good portion of which may likely be garbage data. Hence it becomes impossible to determine on which data elements AI predictions are based. In this way, AI becomes black box technology: an outcome we should absolutely avoid if we have learned anything from black box pricing algorithms.

Or in some cases they don't reveal any more than what can be heuristically determined - e.g. in the case of renewal propensity, length of stay and discount to market are key determinants.

We don't need a machine to tell us that.