Check out our new The REAL AI Podcast for this week – Episode 50 10/26/26 – AI-generated with hosts Miles and Grace
REAL AI: AI can get you lost, new REAL AI Guide is out, AI stats and facts, headlines, and AI quote of the week
By Kevin Hawkins with Korey Hawkins | Oct. 26, 2026 – Vol. 4 Issue 43
REAL AI is the industry’s first and most popular weekly newsletter (and podcast) helping real estate professionals stay on top of the most important AI developments to help save time and stay safe. The newest edition of our best-selling book, The REAL AI Guide for Real Estate Agents, just got bigger and better, with new chapters covering Gemini Notebook, Shadow AI and Agentic AI. Available now on Amazon, or get a personally signed copy here!
AI Can Get You Lost
Last year, Gemini Pro was tapped to help plan our family walking tour of London. I wanted the shortest walking route between several attractions, minimizing our time on foot. Simple enough, right? After all, Gemini has access to Google Maps. What could possibly go wrong?
Plenty, as it turns out. Gemini’s route would have us crisscrossing London, doubling back across the city instead of following a logical route. It was ridiculous. That’s when I discovered one of generative AI’s biggest weaknesses: spatial reasoning.
And despite enormous advances in AI, it’s still a problem with all the major bots, even ChatGPT Business, Gemini Pro and especially Claude Pro.
I eventually used Google Maps for our London route, but even then, its walking times would only be possible if I were a professional race walker!
Vibe coding goes wrong
An industry analyst published a column encouraging real estate agents to use Claude to vibe code custom home search portals for individual clients. His pitch? Meet with a buyer in the morning and, by that afternoon, have a personalized portal featuring MLS listings, neighborhood information, local amenities and travel times.
I’ve been warning agents about the risks of vibe coding since agentic AI emerged. Just because AI can build an app doesn’t mean you can trust what it builds.
The visuals were compelling, included neighborhood comparisons and had an impressive map showing driving times to nearby lakes. The problem? The map was a mess.
Neighborhoods appeared in questionable locations. The geography was distorted and missing a major lake. Some driving estimates were wildly off.
Imagine sending that to a buyer relocating to your market. Give your client an AI-generated map without reviewing it, and you may have just undermined your reputation and brand as a trusted local expert.
AI’s spatial blind spot
Spatial reasoning remains a significant weakness for today’s major AI chatbots. They can write remarkable descriptions of neighborhoods, but accurately determining distances, travel times and the best routes between locations? They still suck at it.
Even Gemini, with its Google Maps integration, has repeatedly given me inaccurate walking distances and paths. Gemini Pro admitted to me that it can stop using Google Maps data mid-conversation and revert to generating inaccurate information.
Think about the implications for agents. Open house maps, buyer showing schedules, broker tours, commute estimates and neighborhood landmark plotting and travel estimates all require accurate geography.
The AI trust trap
Here’s what really worries me. AI does so many things remarkably well that it’s easy to begin trusting everything it produces. You become comfortable with its answers. You stop checking. You let down your guard.
The biggest danger with AI isn’t that it gets things wrong. It’s that it gets so many things right, you stop looking for what’s wrong.
Responsible, safe, and accurate AI requires keeping the HIM and the HER when using AI: the Human in the Middle and making sure the Human Evaluates and Reviews.
It’s your license, your hard earned reputation
Never send a client AI-generated maps, routes, drive times or neighborhood comparisons without verifying the information.
And never assume that because you can connect MLS data to a chatbot, you have permission to use that data to build your own AI-powered tools.
Most agents should avoid vibe coding a consumer-facing tool. Just because you can create it doesn’t mean you should. Especially if you don’t know how to put the proper gates and guardrails in place and keep the human in the middle.
AI doesn’t have a license nor accountability. You do. (-Kevin)
AI Facts + Stats
1. Brokerages surveyed reporting no AI use fell from 24.8% in 2024 to 3.9% in 2026.
2. Brokerages surveyed with no plans to adopt AI fell from 10.6% in 2024 to 1.9% in 2026.
3. Brokerage leaders’ average rating of AI’s current importance rose from 5.45 out of 10 in 2024 to 7.12 in 2026, a 31% increase.
4. Brokerage leaders’ average rating of AI’s future importance rose from 7.02 out of 10 in 2024 to 8.25 in 2026, up 17.5%.
5. Brokerage leaders’ average concern about AI risk and liability remained elevated at 6.50 out of 10 in 2024, dropped to 5.80 in 2025, but rose to 6.38 in 2026.
Source: Delta Media Real Estate AI & Leadership Survey (-Korey)
AI Headlines
The MLS Was Built to Protect Your Data. AI Is Its Hardest Test Yet. | 10/20/26 WAV Group
AI is the ultimate scraper that can move listing data outside the MLS’s regulations.
Before AI content is published | 10/22/26 Florida Realtors
Agents should verify facts, check compliance and keep human judgment at key decision points.
Scoop: Unvetted AI agents are accessing U.S. bank accounts | 10/22/26 Axios
Banks are tightening controls as AI agents raise new security, permission and fraud risks.
Websites shut down globally after AI finds cybersecurity flaw affecting 70% of the internet | 10/21/26 CNN
AI-discovered PHP flaws triggered an urgent global patching effort before hackers could exploit it.
Property ID Introduces NakedHouse.ai for Entitlements | 10/21/26 Mann Report
The AI-generated report reveals zoning rights that can uncover expansion, ADU and income potential.
From Websites to AI-Powered Marketing: Delta Media Group Showcases Its Technology for Real Estate Agents | 10/21/26 RE Technology
Delta Media’s newly redesigned website shows how websites, CRM, marketing and AI work together in one platform.
D.C. lawmakers want to crack down on AI “house-fishing” | 10/16/26 Axios
The bill would require disclosure of digitally altered listing images based in the D.C. area.
How AI Assistants Are Transforming Real Estate Decision-Making and Team Workflows | 10/20/26 Yonkers Times
AI is saving time on the manual work, freeing teams to focus on strategy and judgment.
In the Bay Area’s Hot Real Estate Market, an AI Startup Claims An Edge | Newsweek 10/20/26
Catchouse wants to make real estate agents discoverable by AI as more consumers turn to AI for agent recommendations.
Real Brokerage’s latest AI tech targets agent busywork | 10/20/26 Real Estate News
Leo Pro automates marketing and lead follow-up so agents can spend more time with clients. (-Korey)
AI Quote of the Week: Michael Minard, CEO & Owner, Delta Media Group
The 2nd edition of our The REAL AI Guide for Real Estate Agents, our bestseller, is STILL JUST $9.62 for a limited time only on Amazon!!!