One of the most important things to understand about automation is that it’s a much broader concept than many people give it credit for.
When most people think of automation, they think of it in an industrial context. They imagine factories with robots that pick and sort various products so humans don’t have to. While this is undoubtedly one application, it’s just a fraction of this technology’s potential.
Case in point: investing. Right now, there are a number of dynamic strategies that investors are using that are built on the foundation that automation has provided. While the implementation may change, automation is valuable across virtually any sector you can name. This is true for a wide range of different reasons, all of which are worth exploring.
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The Arrival of Artificial Intelligence
While a lot has been written about artificial intelligence recently, many might not realize just how commonplace it has become in the real estate industry. AI in real estate has quickly become a pivotal hack for investors and successful long-term professionals.
Even though it may seem like real estate moves quickly, in reality, most “overnight trends” have been a long time coming. The issue is that the industry as a whole generates a massive volume of data on a daily basis. Properly wading through all that historical information to identify trends while still in their early stages can be a full-time job in and of itself. If you try to do it manually, you’ll spend so much time just making sense of historical data that there aren’t enough hours in a day left to extract value from it.
With predictive analytics, however, you have that benefit. Artificial intelligence can be used to instantly “understand” the context surrounding that historical data, all so that you can better forecast market trends. You use the past to learn what the future might hold – giving you a chance to get there before anyone else can.
Of course, AI also plays a vital role in other areas of the real estate market. It can help dramatically streamline property valuations, for example. You get the same results with a fraction of the time and effort required. The overarching theme is that artificial intelligence and automation can help professionals fully optimize their investment decisions.
Algorithms, Data, and Beyond
Speaking of “optimization,” it’s also important to note that automation is revolutionizing investment strategies in more than just the real estate sector. Any investment professional who feels they need more time has much to gain.
Trading algorithms, for example, can execute orders swiftly and accurately. Even if it takes a human two minutes to complete a trade correctly, that time adds up dramatically when you consider the sheer volume of trades they handle daily. Even if it were to “only” save a half hour, that time can still be better spent elsewhere.
Data analysis tools can be used to generate the types of market insights that it might take hours or even days to arrive at on your own – if you ever got there at all.
Portfolio trackers can optimize assets in real-time, capitalizing on opportunities for gains and mitigating risk from potential losses.
None of this is to say that automation is designed so investors can put their lives and careers on “autopilot.” It’s about allowing them to finally focus on what they want without simultaneously being forced to deal with the “necessary evil” portions of investment.
The Power of Task Management Platforms
Another excellent example of an automation hack that savvy investors are putting to good use has to do with task management platforms. While the mechanics will vary depending on the solution you’re talking about, these are often suites of tools designed to enhance productivity as much as possible.
AI-driven customer service tools can handle basic tasks like onboarding or even answering straightforward questions that people may have. By ensuring that all this gets dealt with in a high-quality way that doesn’t require human intervention, the investors can focus more on cultivating those relationships with clients. Customers get the information they need, and investors get to devote their attention to the most critical tasks again.
The Innovation of Automated Risk Assessment
Any form of investing naturally has risks requiring proactive management to avoid potentially major (and costly) hurdles. Thankfully, automation-driven risk assessments make this more accessible than ever before.
Not only can an automated system react to ever-changing market conditions far faster than a human can, but it can also be trained to address things like compliance as well. Many automated risk assessment tools are a great way to streamline reporting to that end, ensuring that professionals always keep in line with any rules and regulations they must follow. It’s one less potential headache and one less roadblock that could get in the way of an investor accomplishing their long-term career and portfolio goals.
Automation is Here to Stay
In the end, these are just a few examples of the innovations that are empowering investors across sectors daily. In the fast-paced investing world, it’s essential to understand that every moment counts. There are constantly things that need your attention, analysis, and ability to use the past to predict where the future might be headed.
By helping to streamline the myriad of different tasks that populate an investor’s day, automation helps with all this and more. It leads to more informed decisions, a better understanding of the world around you, and, most importantly, improved profitability.
In an environment where every second is precious, automation helps savvy investors extract as much value from each one as possible. It ensures important (but time-consuming) tasks get done with consistent results. This frees up as much of their attention as possible to focus on that which really matters. This is true regardless of what industry someone happens to be investing in, which is why automation is here to stay.