May 2024 | London – “What Good is Artificial Intelligence When We Still Struggle with Actual Intelligence?” critically examines the current state and challenges of AI in the real estate industry. During a fireside chat with CREtech‘s Head of Content Emily Wright, RealFoundations’ CEO of Management Consulting Phillip McCorkle highlights the limitations of traditional business intelligence (BI) systems that mainly provide historical data without driving significant insights. In contrast, AI has the potential to learn and generate intelligence from data, but this requires clean, high-quality data – something many organizations lack.
The interview covers several key points:
AI Adoption in Real Estate: Artificial intelligence usage varies across sectors and geographies. The US housing sector leads in deploying AI for chatbots and automation, while EMEA/APAC regions focus more on analytics related to ESG (Environmental, Social and Governance) metrics and security. The office sector is lagging in AI adoption due to longer lease cycles and slower engagement with tenants.
Challenges in the Office Sector: The office sector’s complacency in lease durations has led to slower adoption of AI and analytics. This sector now faces competitive pressure to adopt robust information models and analytics to remain relevant.
Learning from Other Sectors: Some real estate firms are looking to leaders like JLL, which has invested significantly in AI and data platforms. However, a widespread issue is the lack of understanding and education about AI among business executives, leading to underinvestment and misalignment of AI initiatives.
Importance of Quality Data: Effective AI deployment hinges on having reliable, well-structured data. Many organizations struggle with data governance and quality, impeding their AI efforts. Foundational work is key in data management and should take place before pursuing advanced AI solutions.
AI as a Means to an End: AI should not be seen as a standalone solution but as a tool to enhance business processes. Companies should focus on identifying specific problems that AI can solve rather than adopting AI for its own sake.
Educational Process: The real estate industry needs to develop a better understanding of AI and related technologies. Many executives and technology leaders are still learning the basics, which hinders strategic AI investments.
Foundations for AI Readiness: Building a modern digital workplace ecosystem that integrates data from various sources is crucial. Organizations need to ensure that information is well-connected and structured to derive meaningful insights from AI.
Overall, the interview underscores the necessity for the real estate industry to focus on foundational data management and education about artificial intelligence to effectively leverage its capabilities and drive business transformation.
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To learn more about how RealFoundations’ Management Consulting can deliver long-term benefits to your organization, contact Phillip McCorkle by email or +1 214 292 7000.
Phillip McCorkle
CEO
Management Consulting
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About CREtech
CREtech is Reimagining Real Estate. CREtech is the largest international community of professionals devoted to innovation and sustainability in the Built World. The live events convene the entire real estate ecosystem to forge meaningful relationships, accelerate technology adoption, and inspire the next generation of ideas to champion the world’s largest asset class.
About RealFoundations
RealFoundations (RF) is the world’s foremost professional services firm focused solely on the real estate industry. Through our delivery of Management Consulting and Managed Services, we help companies that develop, own, operate, service or invest in real estate make better, more profitable decisions. We are proud partners to over 500 real estate companies around the globe, providing accelerated solutions that solve some of real estate’s most complex challenges. We Make Real Estate Run Better.
