A recent study conducted by Cotality found that three in four consumers anticipate artificial intelligence (AI) to play a role in some part of the home buying process – but their overall trust in the technology has decreased.
Cotality recently surveyed prospective and recent homebuyers in the US, Canada, the UK and Australia about their thoughts toward AI in real estate. While most respondents believe AI is incorporated in real estate, especially within property websites, they still want a ‘human in the loop’ element, and 44% were willing to pay someone to verify AI decisions.
Millennials and Gen Z respondents were more likely to see AI as a positive during the home search and purchase process.
Homebuying confidence has decreased significantly over the last year, but half of the Gen Z respondents said the involvement of AI tools would help them feel more confident about buying, selling or insuring a home, as they expect the technology to speed up the process.
One area the report found where AI could prove especially efficient was lending. It has the potential to reduce loan processing times by one to three months.
This follows as more than a third (37%) of originated loans in the US are going to borrowers under 35, and such efficiency could be a boon for younger potential buyers.
“Buyers are not asking whether AI is involved – they assume it is. The question they are now asking is whether the industry has earned the right to use it in decisions that change lives and finances.”
John Rogers, Chief Data and Analytics Officer, Cotality
While AI tools may provide confidence for some buyers as they embark on their home search, overall trust in AI to help find a home has fallen considerably. It dropped from 30% in 2025 to 16% this year.
Tolerance for the ‘learning phase’ of AI in real estate is low, as at least 70% of respondents across all age demographics mention they consider AI-produced errors to be unacceptable. While younger generations are more likely to use AI tools, they are also more willing to pay a human to confirm the accuracy of AI outputs in contrast to older buyers.
As AI becomes more embedded, buyers desire clear AI-use labels for property listings and mortgage recommendations. Over two-thirds (68%) of all respondents state transparent disclosure of AI involvement is important or essential, and 37% said it should be mandatory – a percentage that increased to 61% for baby boomers.
Additionally, nearly half (46%) of buyers say lenders or insurers shouldn’t carry out AI valuations without prior approval, and 64% are worried the technology may ‘recycle’ unverified information.
Globally, nearly half (48%) of buyers feel AI is reliable for making lending decisions. In the US, however, preference for working with humans has increased. Domestically, 55% of buyers want to work with a person to secure a mortgage, compared to 46% last year. Two-thirds prefer humans over bots for legal assistance, up from 54%.
More than half (56%) of buyers trust a human’s guidance over AI for assessing natural disaster risk, and 44% said they would pay extra for human verification of automated recommendations.
In the report, Cotality flagged some key takeaways for industry professionals such as flagging AI influence in materials – to explain how AI and real estate interact beyond speed. There should be clear disclosure and consent language around AI, and to create a strong correction processes and record-keeping including data sources, model outputs, human review and client consent.
