Why Are Private LLMs Hot Right Now?

Imagine this: A prospect is interested in one of your apartments. They reach out to your chatbot, asking if they qualify to rent. Your chatbot, using a public language model, asks for their name, email, phone number, and annual household income to determine eligibility. The prospect shares this information, and everything seems fine.

But behind the scenes, this sensitive information is now out there and potentially exposed to risks. This not only risks the resident's privacy but could also lead to legal issues for the company.

The Shift Towards Private LLMs

Today, about 42% of organizations are planning to create their own large language models (LLMs) due to rising security issues.

Last year, companies like Samsung, Apple, and Google restricted their employees from using common AI tools like ChatGPT to prevent data leaks and mitigate security risks.

This increasing attention to data security highlights the important need for private LLMs in industries like multifamily, where keeping resident information safe is not just good practice but essential for compliance and trust.

What Are the Risks of Public LLMs for Multifamily?

Public LLMs are widely accessible and can be convenient, but they present significant challenges when used in specialized sectors like multifamily.

Here are three major risks that make public LLMs a less ideal option for property managers.

1. Data Security Concerns

Public LLMs pose significant risks by potentially exposing sensitive personal details of residents and prospects through mailbots, chatbots, and other tools to unauthorized parties. This can lead to data breaches, violate privacy laws, and damage trust.

2. Operational Inefficiencies

Public LLMs are not tailored to the unique needs of multifamily, such as specific resident communication styles, property-specific regulations, or FHA (Fair Housing Act) compliance. This rigidity can lead to inefficiencies in management and service delivery.

3. Performance Issues

Public LLMs are widely used and often experience performance drops during times of heavy use. For industries such as multifamily, where virtual assistants like chatbots and mailbots built on LLMs handle large volumes of communications, this can result in slower response times and decreased service quality.

3 Strategic Advantages of Private LLMs For Multifamily

Here are three main benefits that show why private LLMs are a great choice for property managers who focus on security and smooth operations.

1. Enhanced Data Privacy & Security

One of the biggest advantages of private LLMs is their superior data privacy and security. In the multifamily industry, we handle a wealth of personal information about residents and prospects, as well as sensitive company details. Private LLMs ensure all this data remains secure when processed by virtual assistants like chatbots or mailbots, significantly reducing the risk of data breaches.

2. Tailored Performance & Reliability

Private LLMs are fine-tuned using an organization’s vetted data, which optimizes their performance for specific tasks. Unlike public LLMs, which sometimes fabricate answers instead of admitting ignorance, private LLMs provide reliable and precise information based on specific, trusted data. This customization boosts model accuracy and ensures property managers get exactly what they need while eliminating the risk of hallucinations.

3. Consistent Operational Speed

Public LLMs can really slow down, especially during peak hours, and that can be super frustrating. Private LLMs offer consistent speed and reliability, which helps you get tasks done quicker and saves you tons of time. Plus, it keeps everything running smoothly to avoid those annoying slowdowns and headaches.

Private LLMs are the future for companies focused on data safety and efficiency. Property management companies investing in private LLM-powered tools like mailbots, chatbots, and leasing assistants can protect personal information and enhance service quality.

This approach not only builds trust with residents and prospects but also keeps you ahead of the competition.

Thanks for reading, and see you in the next newsletter.

Feel free to let us know what AI topics you're curious about or want to understand better!