Mergers and acquisitions continue to reshape the real estate brokerage landscape, and digital transformation has become essential for brokers to compete and, for independent brokers, ultimately survive.
In the race of acquisition, according to Deloitte’s global real estate outlook for 202581 percent of real estate managers plan to prioritize investments in data and technology, with the report citing digital transformation as ‘a deal accelerator’.
However, more than 70 percent of digital transformations fail according to McKinsey. In real estate the opportunities are even greater. Despite billions being spent on new technology, most companies still struggle to translate innovation into impact. The fault is not technical; it is organizational.
Survival of the fittest
In the broker M&A game, it’s survival of the fittest, and those who succeed are those who embrace tools like AI and use them as cornerstones of their digital transformations. Morgan Stanley projects that AI-powered innovation could generate $34 billion in efficiency gains across the industry by 2030.
Nearly 90 percent of top-performing real estate agents now use AI for lead generation, pricing strategy, marketing automation and personalized customer experiences. According to the National Association of Realtors 2025 Technology SurveyNearly half of real estate agents now use AI-generated content, and a third say AI is already having a moderately positive impact on their business.
The opportunity is undeniable, but in execution most of them fall short. BCG found that 26 percent of digital transformations fail completely, while 44 percent deliver only partial value. Bain & Company reports that 88 percent fail to achieve their original ambitions.
Fault lines
Technology is not the problem; implementation is. That is the fault line that is becoming visible in the current market.
Every brokerage buys technology. Every PropTech company builds it. But only a few are leading.
The brokers winning today aren’t just adopting new tools. They are reimagining how AI, leadership, culture and strategy intersect to drive transformation. They view AI not as a project to deploy, but as a product engine to scale, and embed it at every layer of their operations.
Zillow co-founder Rich Barton said it best: “Technology doesn’t disrupt industries. People who use technology well do.”
Transformation that scales and does not stagnate
That’s the difference between experimenting and transforming. The brokers leading today understand that the digital evolution is not about adopting AI for the sake of innovation; it’s about laying the foundation to scale it up. True transformation happens when leadership aligns purpose and process, culture drives adoption, and technology enhances rather than replaces human expertise.
After years of leading marketing, growth strategy and product innovation at SaaS and global real estate companies and consumer brands, I’ve seen what works and what doesn’t.
I’ve identified six key things that separate the 30 percent who succeed from the 70 percent who don’t. These principles bridge the gap between strategy and execution, transforming AI from a buzzword into a measurable growth engine.
1. Clarity of vision and business alignment
Every transformation starts with clarity, and leadership must share a unified purpose. Start by defining why transformation is necessary. Is it about growth, cost savings, productivity or improving the customer experience? Without full coordination from the top down, even the best technology can quickly devolve into chaos, just with better branding.
Too many brokers chase the flashiest new platform or tool, believing it will solve their problems. But if they don’t master the basics of integration and adoption, they will fail. Transformation is not a software purchase; it’s a strategy directly linked to revenue growth, retention, operational efficiency and ROI.
2. Culture and change management
People, not technology, transform businesses. Taking a structured approach with clear communication, consistent training and strong internal champions can increase success rates sevenfold.
As Redfin CEO Glenn Kelman noted: “Change in real estate isn’t about technology; it’s about convincing thousands of independent entrepreneurs to do something new at the same time.”
Identify digital ambassadors within your organization, agents or team members who are open to testing tools, sharing wins and helping others adapt. Transformation succeeds when adoption becomes a movement, not a mandate.
3. A customer and agent-centric mindset
Any transformation must strengthen both sides of the relationship. It is not enough to optimize processes; you need to provide tools that make it easier for your people to succeed.
Build your digital strategy around customer and agent needs. Use journey mapping to identify bottlenecks and then leverage technology (automation, AI and data analytics) to solve them.
I’ve seen agents spend too much money on new CRMs that went unused because agents were never involved in the design. In one case, after we rebuilt the rollout around employee feedback and co-creation, adoption increased from 40 percent to over 90 percent in six months.
4. Technology as a catalyst, not a goal
Digital transformation isn’t about modernizing your tech stack; it’s about developing your business model. A new integration or automation platform may promise efficiencies, but without clearly defined outcomes it can lead to ‘tool sprawl’, disconnected systems, scattered data and low adoption.
Instead, think of technology as an enabler of scalability and insight. Prioritize systems that integrate with CRM, MLS, marketing automation, accounting and analytics. Compass and Zillow were successful early on not because they had the best software, but because they used technology to create business clarity, price transparency, agent efficiency, and faster decision cycles.
5. Leadership and governance
Transformation starts at the top. The active participation of leadership is as critical to success as it is to driving revenue or margin. A cross-functional governance team spanning product, marketing, sales, operations and finance ensures that every department moves in sync.
Part OKRs (objectives and key results) across all functions, see progress and obstacles transparently and model the behavior you expect. Bain & Company found that overloading top talent without governance is a major cause of transformation fatigue. The organizations that succeed are those in which leaders publicly adopt digital tools, celebrate small wins and make innovation visible.
6. Measurement and agility
Digital transformation is not a one-time event. It is a continuous cycle of execution, measurement and refinement. Track adoption, revenue and satisfaction and make adjustments as the data dictates.
Divide your KPIs into three clear phases:
- Short term (three to six months): acceptance, process efficiency, activation rates
- Medium term (12 months): digital revenue share, customer retention, cost per lead
- Long term (two to three years): ROI, customer lifetime value, market share
Measure engagement, performance and sentiment in real time and be ready to change. Predictive analytics has been shown to improve valuation accuracy and forecast performance, making brokers more competitive. Measurements don’t just track progress; it makes it composed.
Digital transformation in real estate requires operational excellence, leadership discipline and measurable impact, not just new technology. Every brokerage has access to the same AI tools, platforms and data. The real differentiator lies in the way leaders connect them.
Those who win are not the ones who spend the most money. They are the ones who align products, people and profits around a clear, sustainable vision for growth.
Transformation doesn’t fail because of bad technology. According to Bain & CompanyThe strongest predictors of the success of a transformation are how well the company retains, develops and acquires the talent and capabilities to make it happen. BCG has narrowed it down to six key success factors, including developing an integrated strategy with clear transformation goals, leadership involvement from the CEO, deploying high-calibre talent, an agile governance mindset, effective monitoring and a business-led modular technology and data platform.
The future of real estate will not be determined by who adopts AI first. It will be determined by who best makes it operational. True transformation is not about adding technology; it’s about embedding intelligence into the way decisions are made, how people work and how value is delivered. The companies that win won’t just modernize systems. They will modernize thinking and translate digital strategy into measurable, sustainable performance.
It has never been more exciting (or more demanding) to be an independent real estate agent. In December, Inman celebrates the Indie Broker. We delve into the technology, tools and strategies that today’s leaders are using to grow in a changing marketplace and a consolidating industry. Discover what works – and what’s next.
Lauren Henss is the Vice President of Marketing & Strategic Initiatives for FirstTeam. You can contact her at Instagram And LinkedIn.
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