Lates News

Investors were evaluating the vulnerability of real estate service companies to the latest batch 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, Jones Lang LaSalle, and Cushman all saw significant declines. For these three companies, this drop marked the largest single-day decline since March 2020. Analyst Jade Rahmani wrote, "We believe investors are exiting high-fee, labor-intensive business models as these models are seen as highly vulnerable in the AI-driven transformation." In just over a week, investors have been selling stocks of software, private credit, financial services, and insurance brokerage companies. Rahmani referred to this as "AI panic trading" and the real estate services sector is the latest group to be caught up in it.