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Mergers and acquisitions are big business in real estate, and technology plays a critical role, writes contributor Lauren Henss. The real game changer? Whether the organization can handle the merger swiftly.

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Mergers and acquisitions continue to reshape the real estate brokerage landscape, and digital transformation has become essential for brokerages to compete and, for independents, ultimately survive.

In the race of acquisition, according to Deloitte’s 2025 Global Real Estate Outlook, 81 percent of real estate executives 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 odds are even steeper. Despite billions spent on new technology, most firms still struggle to convert innovation into impact. The breakdown isn’t technical; it’s organizational.

Survival of the fittest

In the brokerage mergers-and-acquisitions game, it’s survival of the fittest, and those succeeding 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 brokerages now use AI for lead generation, pricing strategy, marketing automation and personalized client experiences. According to the National Association of Realtors 2025 Technology Survey, nearly half of realtors now use AI-generated content, and one-third say AI is already having a moderately positive impact on their business.

The opportunity is undeniable, but the execution is where most fall short. BCG found that 26 percent of digital transformations collapse entirely, while 44 percent deliver only partial value. Bain & Company reports that 88 percent fail to achieve their original ambitions.

Fault lines

Technology isn’t the problem; execution is. That’s the fault line emerging across today’s market.

Every brokerage is buying tech. Every PropTech company is building it. But only a few are leading it.

The brokerages winning today aren’t just adopting new tools. They’re reengineering how AI, leadership, culture and strategy intersect to drive transformation. They treat AI not as a project to deploy, but as a product engine to scale, embedding it into every layer of their operations.

Zillow Co-Founder Rich Barton put it best: “Technology doesn’t disrupt industries. People who use technology well do.”

Transformation that scales, not stalls

That’s the difference between experimentation and transformation. The brokerages leading today understand that digital evolution isn’t about adopting AI for the sake of innovation; it’s about building the foundation for it to scale. True transformation happens when leadership aligns purpose with process, culture drives adoption and technology empowers rather than replaces human expertise.

After years of leading marketing, growth strategy and product innovation across SaaS and global real estate companies and consumer brands, I’ve seen what works and what doesn’t.

I’ve identified six essentials that separate the 30 percent who succeed from the 70 percent who don’t. These principles bridge the gap between strategy and execution, turning AI from a buzzword into a measurable growth engine.

1. Clarity of vision and business alignment

Every transformation begins 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 complete alignment from the top down, even the best technology can quickly turn into chaos, just with better branding.

Too many brokerages chase the flashiest new platform or tool, believing it will solve their problems. But if they haven’t mastered the fundamentals of integration and adoption, it will fall flat. Transformation is not a software purchase; it’s a strategy directly tied to revenue growth, retention, operational efficiency and ROI.

2. Culture and change management

People, not technology, transform companies. By adopting a structured approach with clear communication, consistent training and empowered internal champions, success rates can increase sevenfold.

As Redfin CEO Glenn Kelman noted: “Change in real estate is not 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 empower both sides of the relationship. It’s not enough to optimize processes; you have 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 friction points, then leverage technology (automation, AI and data analytics) to solve them.

I’ve seen brokerages 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 agent feedback and co-creation, adoption jumped from 40 percent to over 90 percent in six months.

4. Technology as an enabler, not the goal

Digital transformation isn’t about modernizing your tech stack; it’s about evolving your business model. A new integration or automation platform might promise efficiency, but without clearly defined outcomes, it can lead to “tool sprawl,” disconnected systems, scattered data and low adoption.

Instead, treat technology as an enabler of scalability and insight. Prioritize systems that integrate across CRM, MLS, marketing automation, accounting and analytics. Compass and Zillow succeeded early on not because they had the best software, but because they used technology to create clarity in business operations, pricing transparency, agent efficiency and faster decision cycles.

5. Leadership and governance

Transformation starts at the top. Leadership’s active participation is as critical to success as it is in driving revenue or margin. A cross-functional governance team spanning product, marketing, sales, operations and finance ensures that every department moves in sync.

Share OKRs (objectives and key results) across functions, review progress and obstacles transparently, and model the behaviors you expect. Bain & Company found that overloading top talent without governance is a leading 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 isn’t a one-time event. It’s a continuous cycle of execution, measurement and refinement. Track adoption, revenue and satisfaction, and adjust when the data demands it.

Break your KPIs into three clear phases:

Short-term (three to six months): adoption, process efficiency, activation rates
Mid-term (12 months): digital revenue share, client retention, cost per lead
Long-term (two to three years): ROI, lifetime customer value, market share

Measure engagement, performance and sentiment in real time, and be ready to pivot. Predictive analytics has been shown to improve valuation accuracy and forecast performance, helping brokerages become more competitive. Measurement doesn’t just track progress; it compounds it.

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 true differentiator lies in how leaders connect them.

Those who win aren’t the ones spending the most money. They’re the ones aligning products, people and profit around a clear, enduring vision for growth.

Transformation doesn’t fail because of bad technology. According to Bain & Company, the strongest predictors of a transformation’s success are how well the company retains, develops and acquires the talent and capabilities to pull it off. BCG distilled it down to six essential success factors, including developing an integrated strategy with clear transformation goals, leadership commitment from the CEO down, deploying high-caliber talent, an agile governance mindset, effective monitoring and a business-led modular technology and data platform.

The future of real estate won’t be shaped by who adopts AI first. It will be defined by who operationalizes it best. True transformation isn’t about adding technology; it’s about embedding intelligence into how decisions are made, how people work, and how value is delivered. The firms that win won’t just modernize systems. They’ll modernize thinking, turning digital strategy into measurable, sustained performance.

It’s never been a more exciting — or more demanding — time to be an independent brokerage. This December, Inman is celebrating the Indie Broker. We’re digging into the tech, tools and strategies today’s leaders are using to grow in a shifting market and consolidating industry. Find out what’s working — and what’s next.

Lauren Henss is the VP of Marketing & Strategic Initiatives for FirstTeam. You can connect with her on Instagram and LinkedIn.

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