This Is How Using AI Can Ruin Your Business and Cost You MILLIONS

Hi, I'm Jay Thomas, a realtor with 18+ years of experience in the Houston market. Over the years, I’ve seen how AI can make you millions if used correctly, but it can also COST you millions if misused.

The TCPA: What You Need to Know

The Telephone Consumer Protection Act (TCPA) of 1991 protects consumer privacy by limiting telemarketing practices. If you use calling and texting to connect with potential buyers and sellers, this law directly affects you.

To combat robocalls, the TCPA requires that *ALL correspondence be initiated by a human. No bots, no automations... and that means **NO AI*.

The Temptation and the Risk

As a realtor, it's tempting to use AI chatbots to handle initial conversations with leads. They promise efficiency and cost savings. Imagine having an AI bot to follow up on every inquiry about a property listing! Sounds great, right?

BUT violating the TCPA can result in fines of thousands, hundreds of thousands, even MILLIONS of dollars if you're caught and sued. This could devastate your real estate business.

Play It Safe

In real estate, reputation is everything. It may be tempting to cut corners, but always play by the book to keep your business safe. AI for outbound messaging isn’t TCPA compliant. One class action lawsuit could bury you and tarnish your reputation in the market.

The Bottom Line

That's why I avoid AI for outbound text marketing. Short-term savings aren’t worth the potential fines and legal battles. Instead, use AI for lead scoring, personalization, or sentiment analysis. When it comes to reaching out to potential clients, make sure a real human handles the communication.

In my experience, personal connections are crucial in real estate. Ensuring a human touch in all interactions not only keeps you compliant with the TCPA but also builds trust with your clients.

Your wallet (and your sanity) will thank you! And so will your clients, who will appreciate the personal touch only a real human can provide.

Hello! I'm Jay Thomas, a REALTOR in Houston, Texas. Chances are you and I share a similar passion, Real Estate! I also have a passion for building businesses, working out, inspiring others, technology, sports, and people. Connect with me on Facebook and Instagram!