Businesses are quick to slap the “AI” label on their products to capitalize on the buzz. But not only do these products rarely live up to the hype, but in an industry as niche as community association management, the products may not be truly designed to fit your needs as a management company owner or community manager. So how can you tell the difference between genuine Generative AI (Gen AI) and simple traditional AI or bots? And how can you tell if the product is truly going to support the needs of your communities? Let’s break down the key differences and the red flags to look for when evaluating new AI-driven products.
1. Understanding Traditional AI vs. Generative AI
To understand the difference, we first need to define traditional and generative artificial intelligence. Traditional AI systems are rule-based. Think about automated systems that handle repetitive tasks like answering basic customer questions or processing data. These systems rely on pre-programmed logic and can only perform tasks for which they were explicitly designed.
Generative AI doesn’t just follow rules; it generates new content. Whether it’s text, images, or even music, the content is based on the data it’s trained on. Tools like ChatGPT, DALL-E, and Google’s Bard are all examples of generative models capable of producing human-like responses, ideas, and creative solutions.
Spot the difference: If a product says it uses AI, but is really just regurgitating pre-programmed responses without generating anything new, it’s likely not leveraging true Gen AI. Ask the software service promoting AI to your management company if they can provide examples in which it produces new content over time.
2. Does It Learn and Improve Over Time?
A hallmark of Gen AI is its ability to learn from the data it processes and become smarter over time. Traditional AI systems don’t evolve on their own. They are designed to respond the same way every time, based on a limited set of inputs and outputs.
If you notice that an “AI” product delivers the same results or responses each time you interact with it, it’s likely just a bot. Real Gen AI models, by contrast, refine their output, adapting to new inputs and learning from user feedback.
Spot the difference: If a company’s AI product isn’t improving or personalizing its responses with each use, you’re likely looking at a bot – not a sophisticated AI model. This is incredibly important to review in community association management, because an AI tool will need to adapt to changing legislation. What’s more, if you are using a tool that will communicate with a homeowner, the solution needs to adapt to the communication preferences and needs of the homeowner.
3. Does It Rely on User Prompts, or Does It Anticipate Needs?
One of the key capabilities of Gen AI is its ability to anticipate needs and predict outcomes. It can generate insights based on patterns in data without the user explicitly telling it what to do. A chatbot, on the other hand, waits for user prompts and responds accordingly.
Real AI can proactively assist you – whether through personalized recommendations or predictive analytics. TechCollect’s solution, for instance, assists you in determining communication paths for homeowners with delinquent accounts based on that homeowner’s communication preferences and likelihood of repayment.
Spot the difference: If an “AI” system feels like it’s always waiting for your direction rather than providing meaningful insights or foresight, it’s probably just a bot in disguise. When running a management company, you do not have time to direct AI – AI should be directing you in finding better ways to connect quickly and efficiently with your board members and homeowners.
4. Can the Solutions Provider Explain the Benefits of its AI to You?
Finally, it is imperative to recognize if the solutions provider promoting its AI platform to you understands your business needs as the owner of a community association management company. As you are evaluating new technology to improve efficiency for your management staff, you need to always recognize the why behind the what. AI-built tools for community management should be built to alleviate manager workload, empower homeowner self-service within their homeowner or condominium association, and enable boards to focus on community needs over day-to-day tasks.
If a company is promoting AI just for the buzzword, they won’t be able to properly explain the ways in which the solution benefits your communities for good. The service provider should be able to discuss with you the community management industry as a whole, understand your unique needs and challenges, and share how they have built an AI-based product that supports your specific business needs. Between legislative changes and an increasingly competitive space fraught with acquisition, it is important to work with a company who isn’t just an AI expert, but a CAM expert.
Spot the difference: When evaluating an AI-based solution for your management company, be sure to fully vet how the tool will benefit your employees and clientele. If you see the positive impact it would make on workload and homeowner and board relations, it will have potential to be a solid solution for you.
Final Thoughts: Don’t Be Fooled by AI Fakes
With the explosion of interest in AI, it’s no surprise that companies want to jump on the bandwagon. But as savvy consumers and business leaders, it’s important to separate true AI innovation from marketing hype. By paying attention to whether a product can learn, generate new content, anticipate your needs, evolve over time, and truly impact community association management for the better, you’ll be able to spot the true impact of AI for you.
If you’re ready to dive deeper into how AI is revolutionizing community association management beyond the marketing hype, check out our latest whitepaper, AI Meets AR. This report explores how AI is pushing the boundaries of what’s possible to recover HOA debt before attorney involvement.
