Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

AI Set to Transform UK Property Sector, Says Paradigm MD

Paradigm Mortgage Services managing director Richard Howes has highlighted the increasing role of artificial intelligence (AI) in the UK property sector. Howes notes that AI is becoming a significant part of everyday life and urges firms to adapt to these changes.

Howes points out that AI agents capable of monitoring mortgages, protection policies, and savings in real time are already emerging. He suggests that within three to five years, such technology may become commonplace, with AI agents able to plan, remember, and carry out multi-step financial tasks for clients.

The article discusses how AI could reshape the distribution of financial products, including mortgages and insurance. Howes notes that large language models (LLMs) are more likely than search engines to highlight digital-first lenders and direct platforms when answering consumer questions about mortgage rates or life insurance.

However, several factors could slow the adoption of AI in the sector. Regulatory requirements, such as those set by the Financial Conduct Authority (FCA) and Consumer Duty rules, must be met by any AI firm arranging mortgages or switching protection policies. Howes also highlights the importance of trust built through real-life events, such as bereavement or financial difficulty, which cannot be replaced by data alone. Cost and trust in AI for major financial decisions are also cited as potential barriers.

Howes advises firms to ensure their businesses are visible to AI agents, a process known as generative engine optimisation (GEO). He notes that 49% of consumers now use AI-based searching, and 53% use it to guide buying decisions. Firms have reported up to six times web traffic growth after investing in GEO. This involves creating clear, useful content that answers client questions, building a strong presence through reviews and media coverage, and ensuring websites are fast and easy for machines to read.