Lates News

Investors are assessing the vulnerability of real estate service companies to the latest wave of artificial intelligence applications and tools, causing stocks to plummet on Wednesday. These AI tools are threatening the existing landscape of multiple industries. CBRE Group dropped 15%, Jones LangLaSalle fell 13%, and Cushman had a 15% decrease. For these three companies, these declines mark the largest single-day drops since March 2020. Analyst Jade Rahmani wrote, "We believe investors are exiting high-fee, labor-intensive business models as these models are perceived to be highly vulnerable in AI-driven disruption." In just over a week, investors have been selling stocks of software, private lending, financial services, and insurance brokerage companies. Rahmani refers to this as "AI panic trading," with the real estate services sector being the latest group to be swept up in it.