Key Points

• Opendoor recently appointed Shrisha Radhakrishna as its new interim leader.

• Radhakrishna believes artificial intelligence can help the company in multiple areas of its operations, including pricing and in-home assessments.

• The company has routinely incurred losses and it’s carrying more than $2 billion in debt on its books.

• 10 stocks we like better than Opendoor Technologies ›

Artificial intelligence (AI) has been transforming businesses across the globe and across all sectors of the economy. While it may not necessarily fix a broken business, it can help add efficiency, unlock new growth opportunities, and drive down costs.

Those are all things that Opendoor Technologies (NASDAQ: OPEN) could benefit from. Many investors and analysts see the iBuying company as nothing more than the latest meme stock, benefiting from a flurry of hype from retail investors.

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Management, however, hopes to solidify its operations and do more with less, due to AI. Is this a great idea that could make Opendoor a better buy, or is this simply too risky of a stock to hold?

Can AI fix the company’s biggest struggles?

Opendoor’s new president and interim leader, Shrisha Radhakrishna, who took over last month after Carrie Wheeler stepped down, is eyeing AI as a way to improve the company’s operations. Radhakrishna sees many ways that AI can be a key part of the company’s future growth, helping the business with marketing, pricing, and in-home assessments.

Turning to AI can be a way to improve efficiency, but it’ll take time and money to do so. And even then, it’s questionable how much generative AI can do for Opendoor’s business. Consider that the company’s gross margin is typically in just single digits. The iBuying business involves flipping houses and if there’s not enough of a spread there to make enough of a margin, it’s going to be incredibly difficult for the business to cover its other operating expenses and stay out of the red.

AI may help with pricing, but unless it results in significant margin expansion, it may not necessarily lead to a big payoff for the business and its shareholders.

Many AI projects are falling short of expectations

Excitement around AI has captivated investors, but that doesn’t mean that simply throwing money at AI is going to solve problems. In fact, it may create new ones as Opendoor spends excessively without having much to show for it.

According to a recent report from the Massachusetts Institute of Technology, a staggering 95% of companies haven’t been generating any meaningful revenue or payoff from their investments into AI. While the hyperscalers and big tech companies with massive budgets have undoubtedly grown their businesses due to AI, the study underscores the importance of keeping expectations in check.

As tempting as it may be to assume that AI will improve a company’s operations, that’s by no means a sure thing. And that can be particularly concerning for a business such as Opendoor, which has routinely posted losses and which already has more than $2 billion in debt on its books. Last quarter (which ended June 30), its interest expense totaled $36 million — nearly 3 times the size of its operating loss of $13 million.

Investing into AI likely won’t make Opendoor a better stock

Opendoor’s business needs a lot of work before it can have a realistic path to profitability and be a good investment option. There’s a ton of risk for investors to take on and although the stock has surged more than 300% this year (as of Monday), that doesn’t mean the rally is sustainable or that it will continue.

The volatility that comes with Opendoor’s stock makes it an unsuitable option for the vast majority of investors to consider for their portfolios. With challenging market conditions, poor financials, and many question marks surrounding the long-term viability of Opendoor’s business, this is a stock I’d steer clear of for the foreseeable future. At the very least, you may want to wait until the company actually shows some tangible improvement and payoff from its efforts and AI investments. Otherwise, you could be taking on significant risk. This is a stock that could have a long way to fall given its sharp rally this year and the volatility that comes with it.

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As artificial intelligence reshapes the way consumers discover nearby businesses, industry experts are warning that traditional local search strategies may soon become obsolete. In a recent webinar hosted by Search Engine Journal, panelists delved into how AI is accelerating changes in search engine results pages, particularly for location-based queries. They highlighted that AI overviews, which provide synthesized summaries at the top of results, are increasingly pulling data from maps, reviews, and real-time business information, often bypassing the need for users to click through to websites. This shift is prompting marketers to rethink optimization tactics, focusing less on keyword stuffing and more on structured data that AI can easily interpret.

For multi-location brands, the stakes are even higher. The webinar revealed data from a custom study showing that certain queries trigger AI overviews more frequently than traditional map packs, with visibility varying by industry. For instance, retail and hospitality sectors see AI summaries dominating 60% of “near me” searches, according to insights shared. Businesses that fail to adapt risk losing out to competitors who leverage AI-friendly content, such as high-quality images and verified business profiles on platforms like Google My Business.

Navigating the Rise of AI-Driven Local Discovery in 2025: As we approach 2025, the integration of generative AI into search engines is not just enhancing user experiences but fundamentally altering how local businesses compete for attention, with innovations like voice-activated queries and predictive recommendations set to dominate.

This evolution is echoed in broader industry reports. A post on X from digital marketing firm Straight North emphasized that AI is making local SEO “futuristic,” incorporating elements like Perplexity’s local search capabilities and even AI-initiated calls to businesses, drawing from recent updates by Google. Similarly, Business Tech Weekly outlined strategies for adapting to these changes, stressing the importance of claiming listings across multiple maps providers, including Apple and Bing, to ensure visibility in AI aggregated results.

The financial implications are significant. According to a forecast from Coherent Market Insights, the AI search engines market is projected to reach $108.88 billion by 2032, growing at a 14% compound annual rate from 2025, driven largely by local search innovations. This growth is fueled by advancements in natural language processing, allowing AI to understand contextual queries like “best coffee shop open now” with unprecedented accuracy.

Strategic Shifts for Multi-Generational Customer Engagement: With AI personalizing search results based on user demographics, businesses must now tailor their online presence to appeal across age groups, from Gen Z’s preference for visual and social integrations to older users’ reliance on straightforward map data.

Recent news on X from Search Engine Journal itself underscores the need for data-driven tactics, noting that some brands excel in map packs while others shine in AI overviews, based on query types. Their analysis suggests optimizing for both by enriching profiles with photos, hours, and real-time updates. Meanwhile, a report from Google Cloud Blog discusses multimodal AI trends, where text, images, and voice combine to enhance local search, potentially transforming public sector applications like emergency services routing.

Innovation isn’t limited to tech giants. Startups are entering the fray, with posts on X from users like Matt Diggity highlighting entity optimization techniques that help dominate AI platforms. By building comprehensive entity profiles—detailing business attributes in a way AI models can parse—companies can improve their chances of appearing in synthesized responses.

Ethical Considerations and Future Challenges in AI Local Search: As AI becomes more autonomous in curating local results, questions arise about bias in recommendations and the need for transparent data practices, challenging businesses to balance innovation with accountability in 2025.

Ethical challenges are gaining attention, as noted in an analysis by Gupta Deepak, which covers advancements in ethical AI for deep search tools. The piece warns of potential disparities in visibility for small businesses versus large chains if AI favors well-established entities. On X, discussions from Artificial Analysis point to trends like AI agents that automate local discovery, raising concerns about data privacy in real-time tracking.

Looking ahead, experts predict a hybrid model where traditional search coexists with AI enhancements. A recent X post from What People Want observed users shifting to conversational AI for complex local queries while still relying on Google for maps, indicating a gradual transition. To stay competitive, insiders recommend investing in AI tools for monitoring visibility, as suggested in Semrush’s study, which forecasts AI search visitors surpassing traditional ones by 2028.

Investment Opportunities and Market Projections: The burgeoning AI local search sector is attracting significant investments, with projections indicating explosive growth that savvy businesses can capitalize on through early adoption of emerging technologies.

Market dynamics are shifting rapidly, per AlixPartners, which describes a paradigm shift in the global search market for 2025, emphasizing diversification beyond Google. In India, EY’s report on generative AI trends highlights local innovations, such as AI-integrated apps for hyper-local services, which could influence global strategies.

For industry insiders, the key takeaway is proactive adaptation. As one X post from ZC25 noted, generative engine optimization represents an $80 billion opportunity, moving away from outdated SEO practices toward AI-centric approaches. By 2025, businesses that integrate these innovations will likely lead in local visibility, while laggards face diminished relevance in an AI-dominated search ecosystem.

Planet Group International (PGI), the Romanian-headquartered company specializing in content and process management, empowers its Artificial Intelligence team through the collaboration with Michele Vaccaro, a renowned global leader in Artificial Intelligence and digital transformation. The partnership is designed to accelerate PGI’s AI strategy and strengthen its capabilities, with the objective of generating 20% business growth in 2026.

Michele brings 25 years of deep expertise in Information Governance, with the last decade dedicated to Artificial Intelligence at global leaders such as EMC and OpenText. He has guided enterprises across industries through successful digital and AI transformation journeys.

With over 25 years of expertise delivering IT solutions across 20 countries in the EMEA region, PGI is uniquely positioned to integrate AI into its offering, particularly in highly regulated and complex sectors such as banking, energy, and engineering.

AI-driven solutions are expected to become a decisive differentiator in the coming years. Yet, success depends not only on revolutionary technology, but on data readiness. “If your data isn’t ready for AI, your business isn’t ready for AI,” said Michele Vaccaro.

Planet Group International prepared itself to become today the perfect companion for any business that wants to start its AI journey, thanks to its extensive know-how in information governance and the company’s strong competencies in managing unstructured content and preparing data for AI. Combined with its AI expertise, skills, and the ability to adapt international best practices to the local geographical context, PGI can guide organizations throughout the entire journey.

“While AI tools are transformative, they do not generate value on their own. They require continuous training, alignment with business processes, and integration into industry-specific contexts. PGI’s long-standing expertise in content and process management ensures it can provide this foundation, helping customers deploy AI smoothly and effectively while safeguarding compliance and governance. Through this collaboration with Michele Vaccaro, PGI takes a bold step forward in its AI journey,” said Ghenadie Starsii – Innovation Manager at Planet Group International.

According to PGI, on top of preparing the data for AI, which is a critical prerequisite, there are other very important steps to ensure a successful AI journey, including:

1. Defining a transformative vision and strategy – AI success starts with an enterprise-level vision that treats AI as a driver of fundamental business transformation, not just incremental change. This ensures alignment across leadership and enables the design of secure, efficient, and coherent architectures to support long-term growth.
2. Carefully selecting use cases– Organizations should prioritize strategic, business-aligned areas where AI can deliver measurable value, balancing business impact with technical feasibility.
3. People and change management– Generative AI must be treated as a broad business priority, not just a technology initiative. Companies must invest in critical roles, foster data and AI literacy, and drive cultural adoption across all levels of the enterprise.

With this new partnership, PGI creates the formula to deliver real business value, the company aiming to be a trusted partner for organizations adopting AI responsibly and strategically. With focus on innovation, data readiness, and sustainable AI, PGI is positioned to help enterprises unlock growth, boost competitiveness, and lead into the AI-powered future.

Planet Group International journey began over twenty-five years ago in a world hungry for innovation with a singular purpose – to redefine the business landscape and create a sustainable impact on people’s lives. PGI has established a robust presence across seven countries, including Romania, Turkey, Italy, regions in Africa, and the Middle East, with dedicated consulting and implementation teams.