The property sector should move faster on AI adoption, according to findings from a recently published CBRE Report, ‘What are the implications of AI for real estate?’
The report examines the application of generative AI in business, and finds the real property sector can add significant value by embracing the new technology.
Although the the launch of generative AI has sparked fierce debate globally, few businesses, including those in the real estate sector, are yet to fully embrace AI use.
However, with a US $110 billion to US $180 billion value for potential for the real estate industry, firms must move faster to embed AI into their business functions, the report's authors argue.
Real estate is a data-driven industry that can derive enormous value from generative AI.
By introducing AI at all stages of the real estate life cycle, stakeholders including investors, developers and operators can build more efficient, sustainable operations.
The researchers additionally consider the broad range of potential applications of AI in real estate.
From informing property selection to modelling cash flows, there are a number of ways that AI could now, or in the future, help real estate stakeholders to enhance their internal business processes.
Additionally, AI could dictate real estate requirements, enhance sustainability and optimise energy usage across many asset types.
Whilst generative AI presents vast opportunities for the real estate sector, these do come with risk.
The evolution and adoption of AI faces resource challenges, ethical concerns, and risks to users’ intellectual property.
While legislation will go some way to reducing the macro risk around AI, it still needs to be established globally.
