It’s easy to fall into the trap of simply installing an AI chatbot to guide rate decisions for your Self-Storage facility. Today, we are seeing many operators who like a DIY challenge attempt to set their rates using one of these AI tools, only to find that it turns into a disaster. In this article, we outline the top 5 pitfalls for using AI to set your Self-Storage rates.
Security
The use of AI raises many questions about data privacy. AI tools collect a vast amount of data, which can be used to profile preferences and habits. AI tools use your input data to learn how to do things. From its perspective, your data is being used to “train” AI to make future decisions. The more data you add, the more it will use this information in the future and in the public domain. Your sensitive data is no longer yours. Every piece of information you type into the chatbot is used to train the model, improving its answers for future use.
Privacy
There are general rules in the Self-Storage industry regarding the sharing of data, and AI tools typically do not have the same level of privacy protections as other tools. It’s worth noting that any data entered into an AI chatbox may be accessible by third parties or federal authorities. Therefore, it is crucial to avoid uploading any sensitive customer data. Before entering or using an AI chatbox, ask yourself: “Can this data be identified?” If the answer is yes, do not upload it.
Good FMS software can set storage rates better.
Facility Management Software (FMS), such as Sitelink Web Edition, utilises extensive programming to assist operators in setting storage rates. Many factors determine Self-Storage rates, and frankly, there is no single factor that can be identified as a guide for AI to set rates for a facility. It would take far too long.
Getting it wrong
AI models are excellent at generating answers based on provided input and performing analysis. However, they currently lack the inherent “guardrails” that ensure you don’t step outside known parameters. This is where FMS holds a clear advantage. Backed by extensive operational experience and deep historical datasets, FMS can inform recommendations in ways even powerful predictive AI tools currently cannot.
Continual Oversight
Far from saving time, using AI to set prices requires constant supervision to avoid customer confusion and prevent the AI from making poor decisions based on flawed input data. The lack of transparency in how AI arrives at its decisions is a real problem, as it may not use the same method next time. Notably, unless you enter the resultant data, AI has no way of knowing if its recommendation was effective.
While AI can assist with complex pricing decisions, FMS solutions like Sitelink Web Edition offer more comprehensive tools to help you make informed pricing decisions, not just for future rentals, but also for existing renters. The rules for both are different, and owners can have confidence in the established pricing tools, as they have proven to be an effective strategy for over a decade.
AI is still learning. Data security must be paramount, and Sitelink Web Edition has SOC 1 Type II certification, indicating it has passed a rigorous SSAE 16 (Statement on Standards for Attestation Engagements) audit. This certification confirms that Sitelink’s internal control structure is effective in managing customer data, ensuring its security and integrity.
Independent third-party auditors conduct the audit, which is crucial for meeting industry security and compliance standards for Self-Storage management software.
Dallas Dogger – 36 years of Self-Storage experience.
