ChatGPT Nearly Cost Agent $50M Deal: Dumb AI Advice

A celebrity real estate agent reports that ChatGPT nearly jeopardized a $50 million property deal. The buyer asked the AI if he was overpaying for a property. ChatGPT responded yes and provided comparables, without context, suggesting the property was worth less. Here's the thing: The seller had used the same AI tool to justify a higher asking price. This led to two parties, one chatbot, and opposite conclusions. General-purpose AI tools are designed to be agreeable, not as accurate pricing engines. The CEO of Coldwell Banker states that AI is more likely to give you the price you want, rather than the actual selling price. This can waste significant time in the market. Both Zillow's head of AI and the Coldwell Banker CEO agree that these general AI tools lack the context and nuance to accurately price homes. They cannot see renovations, design features, or emerging neighborhoods. This means the AI misses the unique aspects of each home. The bottom line: Relying on general AI for significant financial decisions, like home pricing, can lead to substantial financial losses and wasted time.