Artificial Intelligence, or AI, is not a sci-fi concept anymore. Today, AI is omnipresent, and whether you realise it or not, you’re using it. Google, for example, utilises AI to anticipate your search keywords, Uber uses AI to compute driving durations, and some Roombas take advantage of AI to assess the size of your room before cleaning.
It’s not a surprise anymore that AI and its multiple advantages are being welcomed by a variety of industries, including manufacturing and medical. Indeed, according to Gartner, 37 percent of firms have already embraced some AI, a 270 percent rise in just four years.
It may come as a surprise to those who have followed commercial real estate’s technological adoption over the last decade that AI is now being employed in various operations. For years, CRE was regarded as a laggard in the embrace of sophisticated technologies, an image that was eventually dispelled a few years ago. On the other hand, AI is the pinnacle of modern technology and computation, and it’s more commonly connected with cerebral applications like curing cancer or developing self-driving cars.
Let’s first understand the concept of AI –
Table of Contents
What Artificial Intelligence really is?
Any machine that can obey a set of intelligent instructions, usually in a cycle, is considered AI. It’s in ML that things start to become interesting. Defined by IBM. There is no end to the potential of machine learning; it can be thought of like a robotic brain, a system that can make decisions based on inputs, patterns, and desired results. It is a pattern-seeking, problem-solving tool that uses patterns to predict performance and learns from data inputs and programming.
Why is artificial intelligence (AI) significant in real estate?
Artificial intelligence (AI) will transform industries, and it has already started to do so. When most people think of deep learning, banking and health care are often the first two enterprises that come to mind. We’ve seen it used in various ways in those fields, such as fraud detection and drug development research.
Complex algorithms are being applied to an increasing number of sectors as AI technologies advance. The commercial and corporate real estate industries can benefit from this technology in various ways. The CRE industry benefits from cloud-based AI, making it easier to employ for several functions, including target marketing and investment decisions.
CRE and AI
While technology is always evolving and improving, AI has a few key uses in commercial real estate. They are as follows –
Property Lookups Made Simple
CRE professionals are using AI for various reasons: to assist potential tenants in customising their property searches. The system can connect tenants with properties that meet particular criteria, such as pet policies or proximity to public transportation. It can also use data to trace advertising and target advertisements to a more specific audience.
Customer Service That Is Individualised
The CRE industry that has benefited the most from AI’s impact on customer service is probably retail. Artificial intelligence’s machine learning capabilities are critical in attracting loyal customers. Automated assistants, chatbots, and self-service tools manage a large portion of customer service. However, thanks to the same granular data collection and calculation that other categories have, AI has now created an atmosphere where retail clients may receive much more thorough and individualised customer service.
Examining the Performance of Real Estate
Another application of AI in commercial real estate is predictive analytics. AI has the potential to assist real estate experts and businesses of all kinds in making better business decisions by predicting what will happen in the future based on past events.
Processing of Documents
While AI has changed how documentation is processed across the board, maybe no industry processes as many papers per commerce as real estate; several restrictions and legalities must be addressed from the start of a contract until it is closed. Thanks to artificial intelligence, all neat print is accounted for more effectively and with fewer errors.
Brokers Who Are Tech Savvy
Finally, everyone understands how smart technology affects CRE. The influence it has on brokers as well as their brokerages, on the other hand, is mostly disregarded. It’s no longer enough to know all there is to know about square footage and cap prices without also knowing everything there is to know about smart technology as it applies to commercial real estate.
Deal-Making with Ease
AI is making deal-making considerably more efficient across the CRE industry. Not only is it assisting in the streamlining and automation of much of the paperwork, but it also collects data from each client and deals with artificial intelligence analysis. CRE firms that can use AI for reasonable leads to deliver customised approaches and close agreements faster will gain a significant competitive advantage.
Now comes a very critical question that has been bothering individuals for years –
Will AI Brokers and Appraisers be Replaced?
In a word, no. While all signs point to real estate technology having a larger part in commercial real estate in the future, nobody can substitute for experience. Real estate agents, property managers, appraisers, and similar ones aren’t going anywhere anytime soon. Real estate technology’s most beneficial when used with a real estate expert who understands both the market and how to read data correctly.
AI is fundamentally worthless without the human component. On the other hand, real estate technology should not be overlooked or underused. Emerging technologies are the way of the future, providing a competitive advantage to the next era of CRE professionals.
Parting Thoughts
As technology advances, business executives are becoming more informed about their commercial real estate judgments. It is your broker’s responsibility to provide you with all of the data as well as advice you require to make an informed decision, but it is also your responsibility to ensure that you select a tenant-only representative who can provide you with the information and support you require throughout the process. Ensure AI and data availability are part of your recruiting requirements as you go through the vendor vetting process.
Author Bio:
Co-Founder, Chief Engagement Officer
A people’s person by heart, Rushit has hands-on experience of more than seven years in the IT industry. With pragmatic expertise in client relationship management and negotiation, he has been putting forward innovative solutions for his clients. His people’s skills largely attribute to the success of his two co-founded start-up ventures. When he is not catching up with his family aka clients, you may spot him engrossed in the snooker game. Rushit is your go-to person, for worthwhile professional and personal conversations.
This is very useful and interesting information