Artificial intelligence is more likely to replace individual tasks than letting agents themselves, but the technology will raise expectations for faster service, smarter decision-making and greater efficiency across the lettings sector, Propoly has argued.

The property technology firm said AI could transform areas including tenancy progression, maintenance, referencing and administration, while giving smaller agencies access to capabilities that have traditionally required larger teams.

However, it warned that AI-generated information can be inaccurate and that human oversight remains essential, particularly where automated systems influence decisions affecting tenants.

Tenancy progression is one of the clearest opportunities. AI can bring together referencing, fraud checks, document reviews, compliance and rent protection information, identify potential risks and recommend next actions. Maintenance could also benefit, with AI able to assess reports, identify missing information, triage cases and direct issues to the appropriate contractor.

However, Propoly said AI-generated tenant complaints are creating new challenges for agents, as consumers can quickly produce lengthy complaints and legal arguments that may contain inaccurate, outdated or irrelevant references. In a highly regulated sector, factors including jurisdiction, tenancy type, commencement dates and changes in legislation mean AI-generated information needs to be checked before being relied upon.

The company also warned that AI does not automatically remove bias. Where it is used in tenant selection, referencing or risk assessment, biases contained in underlying data or processes could be reproduced or amplified. Human oversight is therefore particularly important when AI is involved in decisions that could affect access to housing.

Propoly said the most effective model for property management is likely to be AI-assisted rather than AI-controlled. AI could, for example, flag an anomaly in a tenant application or summarise a maintenance dispute, while leaving the final judgement on issues such as liability or whether an applicant should be rejected to a property professional.

The technology could also provide smaller agencies with a competitive advantage by helping individual negotiators and property managers manage communications, administration and information more efficiently.

Propoly added, however, that the biggest change may simply be the speed at which agents are expected to operate, as landlords and tenants become less willing to accept lengthy response times when AI can generate information and communications almost instantly.

Sim Sekhon, group CEO at Propoly, said: "AI isn't going to make letting agents disappear. It is going to make waiting disappear. But there is an important distinction between using AI to help make a decision and allowing AI to make the decision for you. In property, a confident answer isn't necessarily a correct one, and the consequences of getting something wrong can be significant.

"The winners won't be the agents who hand everything over to AI. They'll be the ones who use it to become faster, more informed and more responsive, while keeping people firmly in the loop."

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