Summary
Zillow recently marked its 20th year in business, and its long-time Chief Technology Officer, David Beitel, is focusing on a major shift toward artificial intelligence. The company is using AI to change how people search for, view, and eventually buy homes. By using advanced tools for both internal work and customer features, Zillow aims to simplify a process that many find stressful and complicated. This move comes at a time when the housing market faces challenges like high interest rates and low inventory.
Main Impact
The biggest change is how AI is being woven into every part of the real estate experience. For buyers, this means more than just looking at photos; it involves 3D tours, drone views of neighborhoods, and AI assistants that answer specific questions about rental properties. For Zillow itself, AI is changing how the company operates from the inside. Engineers are using AI to write code faster, and employees have created thousands of specialized AI agents to handle daily tasks. This shift is designed to make the company more efficient while making the home-buying journey feel less overwhelming for the average person.
Key Details
What Happened
David Beitel, who has been with Zillow since it started, is leading the charge to make AI a primary tool for the company. He previously worked at Microsoft and Expedia before helping start Zillow. Under his leadership, the company has moved beyond simple search filters. Now, Zillow uses "natural language" tools, which allow users to type questions just like they are talking to a person. For example, a user can ask a chatbot to find apartments in a specific neighborhood for a certain price, and the system will provide direct links to matching homes.
Internally, Zillow has partnered with AI startups like Glean to give employees a safe way to use generative AI. This allows workers to find information quickly across the company’s vast data systems without risking privacy. The company is also using AI to help real estate agents manage their clients better by summarizing phone calls and suggesting the next steps for a sale.
Important Numbers and Facts
The scale of Zillow’s AI push is reflected in its business growth and investments. In 2025, the company reported $2.6 billion in revenue, which was a 16% increase from the year before. This growth happened even though the overall housing market was slow, with home sales hitting their lowest point in decades. To stay ahead, Zillow spent $400 million to buy Follow Up Boss, a software company that uses AI to help agents stay organized. Within the company, employees have already built more than 4,600 AI agents to help with various business functions.
Background and Context
Buying a home is often the most expensive and stressful purchase a person will ever make. In recent years, this has become even harder. Mortgage rates have stayed high, and there are not enough homes on the market for everyone who wants to buy one. Because the process involves so many people—like agents, inspectors, and bank officers—it often feels slow and confusing. Zillow’s goal is to use technology to bridge the gap between searching for a home online and actually closing the deal. By automating the "boring" parts of the job, like scheduling tours or reading through long documents, they hope to make the entire market move faster.
Public or Industry Reaction
The real estate industry is watching Zillow closely as it integrates these new tools. While some are worried that technology might replace the personal touch of a real estate agent, Zillow’s approach suggests that AI is meant to help agents, not replace them. By using AI to handle paperwork and initial questions, agents can focus more on giving advice to their clients. Partners like OpenAI have also worked quickly with Zillow, showing that big tech companies see real estate as a major area where AI can provide immediate value to regular people.
What This Means Going Forward
Looking ahead, Zillow wants to move deeper into the "tail-end" of the home purchase. This refers to the complicated final steps, such as getting a mortgage and signing legal papers. These steps are currently full of manual work and physical documents. Beitel admits that the company hasn't built everything yet, but the plan is to use AI to track documents and communicate between buyers, sellers, and lenders. If successful, this could turn the weeks-long closing process into something much shorter and more transparent for everyone involved.
Final Take
Zillow is proving that AI is no longer just a futuristic idea but a practical tool for one of the world’s oldest industries. By focusing on making the hard parts of home buying easier, the company is positioning itself to lead the market, even when economic conditions are tough. The transition from a simple search website to an AI-driven platform marks a new era for how we find and move into our homes.
Frequently Asked Questions
How does Zillow use AI to help home buyers?
Zillow uses AI for the "Zestimate" to value homes, creates 3D virtual tours, and offers an AI assistant that answers questions about rental listings in plain English.
Is Zillow using AI for its own employees?
Yes, Zillow engineers use AI to help write code, and the company has created over 4,600 internal AI agents to help staff find information and automate daily tasks.
What is the future of AI in real estate according to Zillow?
The company plans to use AI to simplify the final stages of buying a home, such as managing mortgage documents and coordinating between agents, inspectors, and banks.
