Examining the risks and rewards of using this technology
Artificial Intelligence (AI) can be used in the sales process for a new homebuilder selling to consumers (B2C), or for a factory selling to builders or dealers (B2B). In both cases, it can bring significant rewards, but these rewards come with at least some risk.
Before you as a builder or factory owner/manager can benefit from AI, you must commit to an AI system. There are a growing number of these to choose from. They include free or low-cost systems such as ChatGPT; sales and marketing related solutions such Anewgo, Outhouse, and Aareas Interactive; corporate enterprise resource planning (ERP) software like Oracle and SAP; or industry-specific AI-enabled ERPs like MerlinAI. A large builder with millions to spend on large projects might also consider an AI services company such as Palantir Technologies
The companies mentioned above, Anewgo most widely, are helping residential construction transition from traditional digital platforms to truly intelligent, AI-ready digital ecosystems. MerlinAI is also providing AI-enabled ERP software and helping to streamline factory floor operations, business processes and best practices.
Rewards Using AI in Sales
There are many ways that AI can earn its keep in sales. A builder can use it to write follow-up emails to prospects. A factory can use it to suggest options or upgrades to dealers based on their location, demographics and analytics. The dealer’s AI can make suggestions to individual customers by analyzing website keystrokes or other actions. The AI can also make content suggestions that help potential buyers discover and explore new home communities. A builder can even provide potential buyers with access to AI shopping agents. (Kindred Homes in Dallas, Texas is already doing this.)
This technology becomes more powerful by the day. As companies like Amazon (with Rufus) and OpenAI (with Operator) develop AI interfaces that can browse, compare and even make purchasing decisions, and as software systems such as SAP and MerlinAI introduce AI tools that take action, such as creating and send purchase orders, more consumers and users are beginning to expect these capabilities. That makes having an AI-ready digital presence crucial. At the very least, every builder, dealer and manufacturer should be discussing, evaluating and deciding how they will leverage this technology.
Of course, there are risks. If not managed properly, AI can seem impersonal and buyers may feel disconnected. There are frequent biases in AI algorithms, which may have been trained on datasets that inadvertently exclude or prioritize certain customer segments. However, the more one uses the AI system, the more it learns and the more precise and accurate it becomes.
There are also data privacy and security concerns. Some AI tools
collect and process personal customer data, which could expose a company to cybersecurity risks and regulatory scrutiny. This risk can be minimized by using a strong service provider. A company should also reduce its liability with a bold disclaimer (see box).
There is also a risk of over investment. Implementation costs, initial setup, training and integration of AI systems into the sales process can be expensive, especially for smaller builders and factories. Many systems are extremely cost effective, so individual conversations are required to ensure a match between what is offered and what you need or expect.
An ROI evaluation is the best practice. Sales teams may resist adopting AI tools, perceiving them as threats to their roles or as overly complex technologies, but the salesperson who masters AI tools is going to be more valuable than ever, while those doing what amounts to order taking will not stay employed for long. Minimize this risk with open and honest communication with the relevant internal team members.
Erik Cofield, VP of Strategy at MerlinAI, has 30 years of experience helping companies in residential construction. A member of NAHB, he specializes in AI, Sales and Marketing Strategy, Business Management, and leveraging technology in the sales process. Erik has provided consulting services to builders, developers, remodelers, and construction companies of all sizes and types. He can be reached at [email protected].
