I was hired yesterday at my full professional fee after being compared against four other agents offering discounted fees.

That matters to me, not because of the fee alone, but because the seller understood the difference in value, experience, strategy, preparation, negotiation, and representation.

Since 2023, with the explosion of AI and automation, my income and professional fees have gone up, not down.

Why?

Because the more automated the world becomes, the more valuable the human elements become.

AI is a powerful tool, but it is only as good as the information entered, the prompts used, the judgment behind it, and the skill of the person interpreting the results.

In real estate, the real value is still human:

Experience.
Discernment.
Strategy.
Negotiation.
Trust.
Communication.
Leadership when the deal gets complicated.

Technology can assist the professional.

It does not replace one.

People are still going to be drowning in information and starving for wisdom. 

In the last 6 years I have watched my internet service provider fees go from $45/month to a few months ago it moved up to $90/month. You don't think the cost of quality AI services isn't going to rise accordingly over time? Sure some administrative tasks will be taken over by AI, but there is plenty that will never change. Seriously, can anyone in this business call themselves an agent/realtor/etc - if they didn't have a client break down crying- sometimes out of joy sometimes out of pain. AI is not going to be there for them in the moments of intense emotions. Now, I am a very analytical person...but realize part of my value is the ability to connect with people on their level.  I think it's also worth noting that not all real estate is done identically. My practice is likely very, very different in NYC compared to most anywhere else. While I haven't measured Administrative tasks vs. my time invested, I have categorized my value added services and while administrative tasks are included, it's a relatively small part of what I do. 

I don't see how AI can replace our skill set Leanne Smith so I'll just go with NO!

The very first thing in the list of items that AI can do for free is "CMA / home valuation Free-tier AI produces competitive valuation in minutes"

There are 12 non-disclosure states in the United States where sale prices are not public knowledge. What is AI going to use for the sale price data which is a critical piece of the analysis? How will they know which houses smell like mold, or which have broken floor tiles covered by a carpet, or which face an apartment building that is falling apart, or which have mice crap on the floor? By the photos? That's not going to happen because those things don't appear in the photos.

I didn't even glance at the rest of the list. 

AI can assist real estate professionals, but it's not going to take over and GOOD real estate agents will still receive their fees.

As a sales manager I always told my agents "The only thing your com[etition can't duplicate is you". Still applies today. In doubt, read the answer by Thomas J. Nelson, REALTOR ® CRS,ABR,PSA,RCS-D, CFSP. The shock journalists will write about anything, true or false, mostly false these days.  

I've read it. Actually, I'm tired of reading about it. I've had no issue receiving my full compensation on my listings. My clients understand the value I bring to the table. And in any case, on some level I don't care that much, as I plan to retire within the next year. I'm going to leave it to the next generation to prove its worth. I've been doing it for decades and watching most agents not have a clue about how to prove their worth to their clients.

Short Answer - Not mine. I understand my value, and the people I agree to work with understand my value as well. 

An interesting question.  As I read all the responses, I stand in the hallway of "No, at least not now" -- time will tell, but as humans, we still like to deal with a human being for many of our daily lives and decisions. Trust is a big factor.  I love Thomas J. Nelson, REALTOR ® CRS,ABR,PSA,RCS-D, CFSP  final statement: People are still going to be drowning in information and starving for wisdom.  

And Carol Williams tagline: Information is FREE. Knowledge, Experience, and Integrity are Priceless.

    Hi Leanne Smith 

         I took a look at both of the websites you linked to.  Real Estate News

   and Alloy Advisors

         It appears they are not discussing the costs involved in building/creating a home, but rather the cost involved when Selling or Buying a house (e.g., real estate commissions). 

         The cost of constructing a house depends on numerous factors; it does NOT include real estate commissions.   What is does include is the cost of the lot or land.  The cost of materials (lumber, concrete, drywall, etc.).   The labor costs involved in hiring a small army of carpenters, roofers, HVAC installers, etc.

         And of course the largest cost of all, Government regulation.  The National Association of Home Builders released a report this week stating that Regulatory Fees have increased by 40% in the past five years.

           Returning to your question about AI and the cost of selling a house,  how might AI influence, affect, or change the way that real estate commissions have been historically calculated.   

           Alloy Advocates is promoting their services, and using what might be termed a "click bait" headline to draw attention.  (I am not dissing Alloy Advocates, I am not familiar with them, they appear to be a reputable firm).    Alloy Advocates knows that Realtors are very concerned about commissions, especially following the Sitzer-Burnett debacle brought upon us by NAR, and the many new disclosure requirements.

  The headline "AI poised to break agent commission model" definitely gets your attention.

    My answer to your question is "NO".  AI is a tool, nothing more.    Thomas J. Nelson, REALTOR ® CRS,ABR,PSA,RCS-D, CFSP  nailed it with his inspiring reply.   And  Carol Williams backed it up with her tagline,

"Information is FREE. Knowledge, Experience, and Integrity are Priceless."

  A great question and a great topic, Leanne!  Thanks for bringing it up.

It sounds like the article was written by someone who isn't very familiar with what all we do and is more "clickbait" than anything else.

AI can't accurately review or advise on a contract, it can't take photos, it can't network with other Realtors, and it can't get a real estate license.  AI is a tool (like the airplane, internet, email, telegraph, etc.) that can be used to make Realtors more efficient.  It can automate the mundane tasks, the follow-up stuff, the creation of videos and soundtracks.  I've seen AI that generated walkthrough videos with full narration and a unique soundtrack based on STILL PHOTOS.  It can fix photo lighting, color balance, apply HDR and create "twilight/dusk" photos. 

It won't reduce our commissions, but it'll make us even more efficient with our camera phones and reduce the need for outside marketing contractors in many cases.

Leanne Smith I am on the same page as Thomas J. Nelson, REALTOR ® CRS,ABR,PSA,RCS-D, CFSP. Humans still need Humans, AI does not have compassion. 

Maybe like in the restaurant business, some AI will add a "service charge" to every transaction. In real estate too? That would be nice.

AI will affect a lot of things, some positively, but I predict a lot more negatively. Time will tell. AI will probably start providing their own zestimates like Zillow,  Sellers will soon be telling us that AI says my home is worth X.

Realtor commissions have little to do with the price of homes as any economist will tell you, they are merely a function of supply and demand.  People want nice new homes and that costs money.

As far as agents commissions going down, that may happen, tech may create more competition, if the state laws allow that, however that is not likely anytime soon.

The main thing that drives it down is subpar agents who do not believe that they are worth what they are charging, and cutting their own rates.  There is a possibility that those agents are not worth that much, if they cannot negotiate their own rate, they may suck at negotiating on behalf of their clients as well.

As always, crappy agents will discount, great agents will command a premium for their services.

Your question answered by Google:

Absolutely Leanne,

What the internet did to the car industry, i.e. tell you how much to pay or sell, A.I. will do for all the industries. In Real Estate, everyone will know the figures going in and going out. Now is the time to work on your people skills, first impression, unleash your skills bank so people will say: Hey, I am going to hire this person to help me. Otherwise, do it yourself visits 

Leanne Smith 

There are some great responses here to your question Leanne Smith 

Especially by Thomas J. Nelson, REALTOR ® CRS,ABR,PSA,RCS-D, CFSP 

Yes, as many other professions, ours will be influenced by AI technologies~ no doubt about it. 

The answer to your question is no, I don’t think ai will have an impact on that area?  What thinks you

The world is going to be much different when AI takes over, and it's happening quickly.

Leanne, AI can do a lot, no doubt, but I don't believe they will ever replace the human knowledge.   As Thomas said, with knowledge and experience, the public will pay for it.

Yeah it should increase ours since we'd have to go in and fix its mistakes! 
That report you read is nonsense IMO, there are several reasons our housing markets (not all) are overpriced and our fee is not among them.

AI will likely compress the bottom of the market more than the top.

The agents who will feel it most are those whose value proposition is purely transactional — generating leads, sending templated follow-ups, scheduling showings. AI handles all of that now, faster. A solo agent spending $400/month on CRM and follow-up tools can replace most of that workflow with a single AI layer that works 24/7.

Where compensation holds or grows: agents who genuinely understand their local market, negotiate well under pressure, and build real client relationships. Those are hard to automate.

Tools like Keymint are emerging specifically for solo agents — AI takes over lead response and qualification so the agent can focus on work that actually requires human judgment. That split (AI handles volume, agent handles depth) is probably where the industry lands.

Agents who embrace that early will likely see their effective hourly rate go up even if transaction counts stay flat.

There's not an aspect of life that AI won't affect.  

AI will allow us to do more for our clients than ever before. It should have a similar impact to what the NAR settlement had, which has caused our compensation to increase.  Our company's compensation has gone up dramatically since the settlement. We have embraced AI in several areas and are seeing clients enjoy the additional services it helps us to provide.

AI is just a tool. If we learn the proper use of the tool, we will enhance our skills and value in the consumer's eye Leanne Smith