The Role of AI in Homebuying: Why Buyers Still Want Human Involvement in 2026

Homebuyers Embrace AI, but Human Expertise Remains Crucial

Artificial intelligence (AI) has started to make waves in the homebuying process, but a new study from Cotality reveals that, while 75% of buyers expect AI to be involved, they still prefer human expertise. This finding is part of Cotality’s comprehensive study on consumer sentiment regarding AI’s role in real estate, marking the first time such research has been conducted on the full journey of purchasing a home.

Amy Gromowski, Head of Data Science at Cotality, explained, “Homebuyers want the speed and scale of AI but not at the expense of certainty.” With AI now facilitating a faster, more efficient homebuying process, particularly for the mortgage industry, the report also highlights that while AI can help streamline the process, buyers still seek a level of trust and accountability that only human professionals can provide.

AI’s Growing Role in Homebuying and Mortgages

The Cotality study reports that AI is already embedded in several parts of the homebuying ecosystem, with property websites (86%), lenders (80%), and insurers (82%) being the most expected platforms to use AI. Interestingly, the trend is most prominent among younger generations, with 84% of millennials and 81% of Gen Z expecting AI to be part of their homebuying experience.

Despite AI’s presence, it appears the comfort level with fully automated processes is still lacking. The study found that 46% of buyers in the Gen Z demographic would feel more confident with AI assisting them in the homebuying journey, compared to only 21% of Baby Boomers. Younger buyers particularly value speed, wanting faster service when securing legal assistance (46%) and insurance (39%).

Generational Differences in AI Acceptance

While younger buyers are leading the charge in embracing AI, there is a generational divide. Baby boomers, for instance, are less likely to trust AI in the homebuying process, with only 70% believing AI is already a part of the journey, compared to 84% of millennials and 81% of Gen Z. As these younger generations enter the market in higher numbers, the demand for AI-assisted services in real estate will only continue to grow.

Yet, even among Gen Z, concerns remain. Many buyers especially older generations have shown increasing resistance to fully automated solutions. Gen Z may be the most willing to embrace AI in the process, but they still want human intervention in key areas, including mortgage applications and legal assistance.

Trust and Control Remain Key Factors for Buyers

Despite the technological advancements AI brings to the homebuying experience, trust in AI’s ability to handle crucial decisions has diminished. In 2025, 30% of buyers trusted AI to help find a home, but by 2026, that number had dropped to 16%. Additionally, nearly 46% of buyers believe AI should not make automated valuations without prior approval. This reluctance stems from concerns about the lack of transparency in how AI makes decisions and the potential for errors in critical financial areas.

According to the study, 64% of buyers expressed concerns that AI could recycle unverified data, instead of using validated, first-party information, further eroding trust. Many consumers remain apprehensive about how AI might influence the lending process, especially with financial decisions that impact their most significant asset—their home.

AI’s Impact on Financial Processes: The Need for Transparency

While nearly half of global buyers (48%) consider AI reliable for making fair lending decisions, the demand for transparency in AI-driven processes is clear. Buyers want clearer labels for AI-driven property listings and mortgage recommendations, with 68% of buyers stating that AI labeling should be clearly marked, and 37% saying it should be mandatory. 61% of Baby Boomers in particular voiced their support for clear AI labeling, highlighting generational differences in how AI is viewed in the homebuying space.

Despite concerns, buyers are still open to digital tools that can simulate and predict climate risk or market fluctuations. However, they prefer a human safety net when interpreting AI-generated data, with 44% of respondents indicating that they would be willing to pay extra for a professional’s verification of AI-generated housing decisions.

The Bottom Line: Buyers Want Speed, Efficiency, and Accountability

The evolution of AI in the homebuying process is undeniable. Buyers are increasingly comfortable with AI’s ability to streamline tasks and provide faster services, but they are not ready to relinquish human involvement in critical decisions. Whether it’s securing a mortgage, making legal decisions, or assessing the risk of climate change, buyers value transparency, accuracy, and accountability.

As the industry embraces AI, it must balance innovation with human trust. Buyers do not reject AI—they seek safeguards and assurances that the technology will be used responsibly. In the future, a hybrid approach combining AI’s efficiency with human oversight may become the ideal model for the homebuying process.

For real estate professionals, lenders, and others in the industry, understanding this balance will be key in serving the next generation of buyers and staying competitive in an ever-evolving market. For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.