You can run but you can’t hide from AI, so embrace it

COMMENT Artificial intelligence is here and you can’t run from it. The experts say it’s going to impact all aspects of our lives, and that has big implications for the real estate sector too. So while there’s no doubt that AI is the big question on everyone’s mind, we need to embrace the fact that it is here and try to learn more about it. AI has the potential to transform many of the day-to-day tasks within real estate. Low-value workflows are ripe for disruption, especially where high-value individuals are doing that work. The benefits of AI include efficiency through task automation and data analysis for informed decisions. Number crunching Simple tasks like manual data interpretation will inevitably be replaced. AI can significantly reduce errors and increase accuracy and precision. It can scan data and discover patterns faster and better than any single human could. The high processing speed means it is able to crunch huge volumes of data and share insights at a rate that will improve market analysis and forecasting. Yet AI still needs to be trained on the type of data it can process in order to provide meaningful and robust insights into the market. Aggregating data is still a huge challenge for the industry, but as the shift from information sitting in siloed places and buried in excel workbooks evolves, the possibility for AI to have a significant impact will increase exponentially. This is where we may also see the gap dramatically widen as those who are well progressed with their digital strategy obtain a very real competitive advantage. Data is only half the picture. Commercial real estate is complex and the interpretation of data and the subsequent direction or final decision-making process will in the near term require final human input. However, the days of relying on lagging indicators and gut feel are beginning to subside, and predictive forward-looking analytics leveraging real-time insights will be the way that decision-making evolves. AI can observe occupier behaviour by crunching huge sets of data to offer insights into how trends are evolving from commuter patterns to lifestyle choices, down to the utilisation and occupancy of real estate. The ability for the industry to harness this data and inform the built environment will lead to a much closer relationship between landlord and tenant and customer, inevitably improving “tenant experience” in a dramatic way. Improved landlord-tenant relations We must also remember that AI can work without breaks, 24/7, and maintain consistent levels of productivity throughout that period. It can think faster and perform multiple functions with more accuracy than a human. As a result, we are already seeing a landlord’s interaction with the tenant evolve with apps, portals or websites leveraging digital assistants to deliver immediate responses and manage conversations. Some chatbots are built in a way that makes it difficult to tell whether we are conversing with a human or a computer. The key advantage of AI is that it is automated and adaptive, meaning it learns from its mistakes and continues to evolve. There is no upper limit on possible improvements. Similarly, it’s clear that AI can help in optimising building management in line with particular needs and objectives. As both landlords and tenants endure further scrutiny regarding the sustainability of their buildings, AI can help with energy/cost savings. It can learn how occupiers use their space and then offer recommendations on where energy (and consequently cost) savings can be made, driving sustainability and improving the bottom line. Given the war for talent and the need to incentivise the return to office, AI has the potential to both enhance the tenant experience and improve the operational performance of buildings, thereby supporting landlords and tenants in the attractiveness and resilience of buildings, including the push to a net zero world. Harness the power It’s clear that AI is going to massively change the game and replace many of the processes that we do or can’t do today. This sounds scary but, in fact, it will provide opportunities for those working in real estate. At VTS, we’re already seeing AI streamline a huge number of lower value tasks that higher value team colleagues are doing, including prospecting, aggregating data, drafting emails, supporting content creation and design formatting through our sales or customer management process. It’s up to us as individuals to learn how best to harness AI’s power to supercharge existing technology to deliver a better customer experience and drive innovation, growth, and success. We need to adapt to the rapidly evolving AI landscape and upskill ourselves to embrace the efficiency, innovation and opportunities that AI can offer rather than burying our heads in the sand. Charlie Wade, EMEA managing Director, VTS Image from VTS