Artificial Intelligence (AI) is an interdisciplinary field that involves the application of intelligent technology capable of performing tasks with minimal human intervention.
The potential for AI to revolutionize businesses, industries, and society has been steadily growing for many years. However, recent advancements have brought AI from a specialized area of study to the forefront of mainstream adoption.
The proficiency of AI in various domains, including writing, drawing, coding, and composing, has prompted corporate leaders to carefully evaluate the opportunities and risks that AI presents for their future.
In the commercial real estate sector, it is evident that embracing AI strategically could lead to transformative changes. According to JLL's 2023 Global Real Estate Technology Survey, AI and generative AI were ranked among the top three technologies expected to have the most significant impact on real estate over the next three years, as indicated by investors, developers, and corporate occupiers. However, there is still a lack of clarity regarding the specific implications of AI for the industry.
Respondents displayed the least understanding of AI and generative AI compared to other surveyed technologies such as blockchain, virtual reality, and robotics.
AI can be utilized in various areas within commercial real estate, including intelligent property search and recommendation, predictive analysis for market analysis, property management and maintenance, and enhanced marketing and advertising.
Despite this uncertainty, industry leaders in real estate are keenly aware of the imminent changes and are actively exploring ways to harness AI's transformative possibilities.
The integration of AI in real estate revolutionizes acquisition, management, and analysis. It enables data-driven decision-making by extracting insights from patterns using machine learning techniques.
AI benefits the industry by optimizing processes, enhancing customer experiences, and improving sales, lead generation, and data collection. By leveraging AI to gather consumer preferences and feedback, agents and brokers can make better judgments and enhance marketing strategies.
AI-powered automated valuation models compete with appraisers, while predictive analytics aid developers in location recommendations. AI empowers real estate experts to extract insights from vast amounts of data, shaping data-driven strategies for investment opportunities and competitive pricing. The opportunities for growth with AI in real estate are extensive.
(The writer is Head, Strategic Consulting | Value & Risk Advisory, JLL India.)
