The Change: Context, Not Just Data, is Now the Hard Problem in AI
Recent insights from Zillow's SVP of Engineering at VB Transform 2026 highlight a critical evolution in Artificial Intelligence (AI) development: the challenge has moved beyond simply gathering data to effectively managing and maintaining context across complex customer journeys. Companies like Zillow are pioneering architectures that ensure AI systems remember and carry forward a customer's progress and preferences, regardless of the platform or touchpoint. This shift implies that standalone chatbots or basic AI tools may become less effective for businesses with multi-stage customer interactions.
This change is effective now for leading tech companies and will gradually influence the broader market as businesses adopt more sophisticated AI strategies. The ability to deliver a seamless, context-aware experience is becoming a key differentiator.
Who's Affected
- Real Estate Owners: Property owners, developers, landlords, and property managers who engage with clients through various stages of property transactions or management.
Second-Order Effects
AI-driven context management can streamline real estate transactions, potentially reducing the time from listing to sale. This efficiency could lead to faster property turnover and increased development velocity. However, the specialized expertise required to implement and maintain these AI systems might also increase operational costs for brokerages and property management firms, potentially impacting fee structures. Furthermore, a more seamless digital experience could raise customer expectations, pushing less technologically adept owners towards consolidation or partnerships.
What to Do
- Real Estate Owners:
- Watch: Monitor how AI platforms and specialized real estate tech providers are developing capabilities to maintain persistent customer context across diverse touchpoints (e.g., initial inquiry, property viewing, financing, closing). Key indicators include the release of AI tools that integrate CRM data with transaction workflows and demonstrate measurable improvements in customer engagement or conversion rates. If AI solutions begin offering significant, demonstrable ROI (e.g., a 15-25% reduction in customer drop-off, a 10-20% increase in successful leads converted) for AI architectures that prioritize context management, consider evaluating pilot programs, focusing on vendor solutions that can integrate with your existing property management software and client communication channels.
This proactive approach allows businesses to strategically invest in AI solutions that genuinely enhance customer journeys and operational workflows, rather than adopting tools that offer only superficial improvements. The focus should be on building or adopting systems that understand the entire customer lifecycle.



