AI is no longer a futuristic concept; it is already becoming a part of our professional and personal lives. Its rapid adoption is an unprecedented development in the tech sphere, and it holds vast potential to augment various industries, including the commercial real estate (CRE) sector.
It is key for commercial real estate to keep pace with AI innovation and integrate it into their operations towards driving economic growth and value. It's an exciting time for commercial real estate and many industries in between.
Our panel discussion, led by Sam Caulton, Chief Financial Officer at Re-Leased, featured insights from Yao Morin, Chief Technology Officer at JLL, and Johan Jegerajan, Consulting Chief Technology Officer for the UK & EMEA region at PwC. Together, they explored practical applications and strategies for leveraging AI to enhance efficiency and drive innovation within the commercial real estate (CRE) sector.
Watch the full webinar of their insightful discussion here.
Our top takeaways below
AI Is Here to Stay
AI is not just a fleeting tech trend; it's a game changer and reshaping industries at an unprecedented pace. ChatGPT stands as a prime illustration of this rapid pace, attracting over 100 million users in just two months, highlighting the immense popularity and potential of this technology.
An interesting finding from a survey conducted by Microsoft revealed that 64% of surveyed individuals struggle with managing their day-to-day jobs, and a surprising 70% would willingly delegate tasks to AI to lessen their workloads.
"If we lean in on this, we collaborate and work together. We can drive this industry forward. We can drive economic growth. We can drive value for our organisations collectively together.
If we sit back and stay still, disruptors will come in, and then the choice is taken out of our hands. So I think we could really lean in. And for this particular industry would maybe been a bit slower in terms of technology advancements. Now is the time." - Johan
Yao highlights that the focus isn't on replacing jobs but rather on encouraging enterprise leaders, including CIOs and CTOs, to explore alternative tasks ripe for automation. By breaking down job roles or profiles, we can identify tasks suitable for automation, thereby enriching our employees' work lives. This shift allows them to dedicate more time to meaningful, knowledge-based challenges rather than repetitive tasks. The goal is to foster a work environment where employees engage in more intelligent and fulfilling endeavours.
AI = Amplification Intelligence
LinkedIn founder, Reid Hoffman described AI as "amplification intelligence." This term redefines AI's role not as a replacement for human effort but as an intelligent co-pilot designed to augment our capabilities and streamline our activities. It is about amplifying our roles and turning us into supercharged professionals, capable of achieving milestones that seemed impossible even a year ago.
"Do you feel you have a culture of innovation? And do you have a culture of intellectual curiosity? The corporate DNA needs to be there, and that could be by you driving it. But that's really important to the conditions for success." - Johan
AI has several potential use cases in Commercial Real Estate
AI is predicted to play a key role and revolutionise the real estate landscape, from gaining insights into property prospects based on vast pools of data to facilitating seamless property management processes. The use cases cover advanced analytics on real estate and property management complex data, automation around tasks for property managers, and legal and compliance work, including valuations.
"How can we efficiently utilise this data? How can we assist property managers, leasing brokers, capital markets analysts, and all individuals who rely on data daily?
Our goal is to facilitate their transition from data to insights with minimal technological barriers. I believe these two perspectives are closely linked and represent the greatest value drivers for the commercial world." -Yao
Sam Howie, Director, Strategic Accounts at Re-Leased, covered a lot of these use cases more in depth at a recent presentation at PropTech Connect Event in the UK.
AI platforms are anticipated to perform remarkable tasks such as valuations and predicting trends in districts or cities, particularly in areas like office rent, which are currently predominantly managed manually.
Yao discusses that the ongoing evolution of AI primarily focuses on reducing the entry barrier to advanced analytics tools and technology, facilitating their accessibility and effective utilisation for individuals of varying tech skills.
"For instance, the groundbreaking capability to query a data warehouse using plain English represents a transformative advancement poised to reshape the landscape significantly. " - Yao
Measuring the ROI of AI is necessary
While implementing AI, it is vital to adopt an outcome-based perspective to measure the ROI. Organisations should focus on long-term outcomes over periods of three to four months, rather than immediate results. Education and training will also play a significant role in implementing AI responsibilities across the board.
Johan elaborates on the transformative potential: now, businesses can fundamentally alter their model overnight, emphasising the importance of understanding the process and, crucially, the associated risks.
"Make sure that you measure. Make sure you measure the value as you are adopting AI technology because then it will help you to identify the next opportunity." - Yao
Our founder and CEO, Tom Wallace outlined a clear roadmap to achieving this potential in his blog post - "Building & Connecting the Technology Powering the Future of Commercial Real Estate"
Johan also emphasised that speed holds significant importance in this evolving landscape. While regulations may struggle to keep pace, ongoing dialogue is essential to define boundaries and parameters. The crux of trust and risk lies in organisational confidence in technology outcomes.
Determining where human intervention is necessary, distinguishing between the 80% that's viable and the remaining 20% requiring human oversight, becomes pivotal.
