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The growing role of AI in real estate
Smart buildings are becoming the new normal in the real estate sector, enabling the smoother and more efficient running of individual assets and portfolios. Smart tech can continually gather and monitor data, and so ensure optimal building performance, improved user experience and productivity, as well as increased energy efficiency.
JLL’s 2023 Global Real Estate Technology Survey found that over 80% of real estate occupiers, investors and developers plan to increase their real estate technology budget in the next three years.
In their initial iteration, smart buildings incorporated mainly IoT and smart sensors, however increasingly AI is now being used to take them one step further.
While concerns have been expressed that AI will take over human jobs, to date its role has been more as an enabler, with innovative real estate businesses already invested in PropTech using it to drive further efficiencies in their business.
For investors, AI has the ability to analyse data in a far more granular manner, enabling more accurate and streamlined investment decisions to be made. By scanning vast amounts of historical data, as well as market trends AI algorithms can provide valuable insights into the current market as well as future opportunities, using predictive modelling.
On an asset management level, energy efficiency across property portfolios is improved through AI, by allowing more granular data to be gathered and monitored on sustainability.
AI also has a crucial role to play in helping to build a stronger and smoother landlord-tenant relationship.
One example of this is tenant apps which, by using an AI-powered interface, can automate everyday tasks such as maintenance requests and tenant communication, as well as carry out predictive tasks through a user-friendly interface.
In some instances, AI can in fact go one step further in improving the user experience by collecting and analysing data gathered from sensors on employees’ behaviour patterns. One example of this is Microsoft’s Redmond headquarters in the United States, where user behaviour is monitored to adjust, for example, lighting and temperature, to suit individual tastes.
This can in turn not only improve worker productivity but help to run buildings more energy efficiently, reducing their environmental impact by allowing heating and cooling systems to only be triggered according to need.
AI’s role in improving worker productivity has more recently been refined through the use of generative AI tools such as ChatGPT, which can create new or original content following prompts, based on learned patterns. A study conducted by Goldman Sachs noted that global GDP could in fact increase by as much as 7 per cent thanks to generative AI, making it a particularly welcome addition to the workspace of the future.
However, AI also comes with its challenges. Applications tend to be data-heavy and process vast amounts of secure information. Fast and reliable connectivity is a must, as is scalability and security.
While the prospect of engaging in AI may seem daunting, the benefits clearly outweigh the risks.
At Backbone Connect, we recognise that innovators in commercial real estate need expert support from cybersecurity professionals, to ensure their smart building implementations and AI / IoT concepts are assessed for the likely risk and exposure. Our clients rely on us for cybersecurity risk assessments both logical as well as physical – our goal is to support your innovation and success with practical advice as well as dependable and secure infrastructure solutions.