What Blackstone Investments Knows About AI That Realtors Don’t

Oct 31, 2025

Dive into how Blackstone views AI's impact on real estate, highlighting the 'picks and shovels' analogy to identify who benefits from disruption. Discover the cautionary tale of the airline industry as it relates to innovation and profitability. Ben warns that rule-based jobs, like title and appraisal, face automation risks, yet emphasizes the irreplaceable human connection between agents and clients. Ultimately, he reassures that real estate thrives on personal relationships, not algorithms.

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INSIGHT

Picks And Shovels Win In AI

Blackstone frames AI disruption as a “picks and shovels” moment where infrastructure wins more than consumer-facing winners.
Chips, data centers, and energy are the core investment plays underpinning AI's value chain.

INSIGHT

Infrastructure, Not Platforms, Capture Profit

Major AI platforms may transform society but not necessarily deliver the biggest profits.
Profits will concentrate in supporting assets like data centers, chips, and energy supply.

INSIGHT

Rule-Based Businesses Are AI Targets

Blackstone targets rule-based businesses as the most AI-vulnerable acquisitions.
Examples include accounting software and claims processing where deterministic rules govern outcomes.

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Ben Brady breaks down Blackstone’s latest investment outlook and what it means for the real estate industry in the era of artificial intelligence.While AI continues to dominate global conversations about disruption, Ben explores a fresh perspective—how Blackstone’s “picks and shovels” philosophy reveals where the real changes will occur. Drawing parallels between the airline industry’s innovation-versus-profit paradox and today’s AI boom, he unpacks which sectors are likely to be revolutionized and which will quietly fade away.More importantly, Ben brings it home to real estate: identifying the rule-based businesses that are most at risk of automation—like title, escrow, mortgage, and appraisal—and why the agent relationship remains irreplaceable. His key takeaway? Real estate is not a rules-based business; it’s a human-based one.If you’ve been wondering how AI will shape your role, this episode will reset your mindset on where the real opportunities lie—and remind you that the agent-client relationship is the ultimate advantage no algorithm can replicate.Timestamps & Key Topics[00:00:00] – Blackstone’s AI Investment Outlook Explained[00:01:15] – The “Picks and Shovels” Analogy: Who Profits from Disruption[00:03:20] – Why the Airline Industry is a Cautionary Tale for AI[00:04:50] – Blackstone’s Focus on Chips, Data, and Energy[00:05:40] – Rule-Based Industries and Their Risk of Automation[00:07:10] – Can Real Estate Be Automated? The Human Factor[00:08:30] – The Future of Escrow, Title, and Appraisal Jobs[00:10:00] – Why Relationships Will Always Outperform Systems[00:10:45] – The Real Estate Industry’s Hidden Strength: Emotion and Trust🔗 Related Resources:For more info on Harcourts Auctions, our non-distressed auction platform, visit: https://www.harcourtsauctions.comConnect with Ben Brady and the Harcourts Auctions team:Facebook: www.facebook.com/BenbradyharcourtsLinkedIn: www.linkedin.com/in/ben-brady-0b223517Instagram: www.instagram.com/harcourtsauctionsFacebook: www.facebook.com/HarcourtsAuctions🎯 Subscribe for more candid conversations on how technology, strategy, and leadership are reshaping real estate.👇 Drop a comment sharing your thoughts:Do you think AI will help or hurt the real estate industry?