Matthew Bouley: All right. Got it. Thank you for that Kalani. And then secondly, super high level on the topic of generative AI. Great color at the top around sort of Compass’ head start. Are you worried at all that some of that could actually level the playing field a little bit? And I guess really my question is, how do you kind of stay ahead of the pack to the extent some of your competitors could have access to some of that?
Greg Hart: Well, our competitors, for the most part, don’t actually have their own platforms. So the tools that their agents use are going to be spread across a diaspora of third-party licensed software. And so, while each of those individual vendors might leverage AI to improve what they do, it’s not all integrated into one platform. So, an agent could use AI to do something for marketing in one place. But the benefit of that is limited to that take. If they want to get at another part of their business, they have to then copy it, paste it, put it into the app. And so the benefit of our platform is it’s all together in one place. And so, as an example, for the integration that we’ve done with ChatGPT-4 in Compass, you can create a listing description.
The listing description is pulling all the information from the MLS data that we have. So, it’s leveraging all of the metadata that we have and pulling that directly in. The way that we’ve talked about it with our agents is because one of the other questions that people sometimes ask is, “Will AI disenfranchise or disintermediate agents?” And my perspective is absolutely not. It will make the best agents better. The ones who leverage AI will get better at what they do. They will save time and they’d be better able to focus on where they truly provide value to their customers. Listing descriptions don’t get you to perfect. They don’t do the job for you, but they do 80% of the job in one second. And then the agent can put the final touches on it to have it reflect their brand and the way that they want to present themselves and their clients listing to the market.
So, my belief is that AI will actually increase the differentiation that Compass offers versus others. We’ve seen that was likely to sell. No other brokerage has anything like likely to sell. It’s generated more than $100 million of incremental revenue in the last two years. You only get that benefit because our agents are using our CRM on a daily basis. The contact information is in there. We’re able to create an AI-driven model that scores all of that and then recommends to agents, the past clients they should reach out to because we believe that, that home has a higher likelihood of going on the market in the next year. And we’ve had amazingly positive responses from agents. So my perspective is it will actually increase our competitive differentiation over time.
Matthew Bouley: It’s great color. Thanks, Greg. Good luck, everybody.
Greg Hart: Thanks, Matthew.
Operator: We’ll take our next question from Matthew Cost with Morgan Stanley.
Matthew Cost: Hi, everybody. Thanks for taking the questions. I have two. Just starting with the commentary at the beginning of the call about launching a consumer-facing portal next year. I guess, can you talk through what do you think will distinguish that offering from your competitors and some of the key execution hurdles to building that? And then, secondly, just on the expansion of the T&E business outside of Southern California, you mentioned a couple more markets coming by the end of the year. Do you see that driving a measurable margin impact, if not this year, then, in ’24 at the company level? Thank you.
