“The agencies that will thrive are those using AI to enhance their services, not replace the human element. The recent share price weakness reflects uncertainty, not the end of the traditional agent, but a shift in how we operate.”
John Cahill, an analyst at Stifel, said: “I’m not sure how well-founded these fears are – there have been attempts to disintermediate estate agencies before, notably with Purplebricks, but given the personal nature of the housing market, it has remained almost exclusively a physical salesperson-driven industry.”
It comes after billions were wiped from British stockbrokers and wealth managers this week over fears that AI chatbots could replace them.
Among those worst affected were St James’s Place, AJ Bell and Quilter.
An AI tax tool launched by Altruist Corp, purporting to read payslips, meeting notes and other documents to help advisors create personalised tax strategies, spurred on the sell-off.
Elsewhere, a new insurance price comparison app on ChatGPT drove down price comparison sites such as MoneySuperMarket on Tuesday.
Other businesses caught in the crossfire include data giant Relx, accounting software group Sage and credit score company Experian.
Relx has plummeted by around 34pc over the past month, while Sage has lost nearly 27pc of its value.
Mr Cahill said: “It seems at the moment that any hint of AI infiltration (e.g. St James’s Place earlier this week) is a cause for an equity sell-off. It will have an impact, of course, but not necessarily that significantly in some industries, of which I would say estate agency is one.”