Yardi was proud to partner with CREtech the day before CREtech London 2024 and invite some of the industry’s key figures for a roundtable discussion about the future of real estate and the role technology has to play both now and in the future.
The session split into separate discussion topics, chaired by industry gurus Anthony Slumbers and James Dearsley.
In an illuminating discussion about AI and its use in real estate, Anthony Slumbers started by outlining the importance of appreciating the difference between the two main types of AI. Predictive AI, which uses data to learn patterns and make predictions, requires a lot of data to be effective and is not well-suited for the real estate industry because there is often not enough high-quality data available. Generative AI, on the other hand, can create new data, such as text, images, or code. It is a more powerful tool for the real estate industry and can be used for a variety of tasks, such as automating routine processes or creating fresh marketing materials.
AI is likely to have a significant impact on the real estate industry. It could automate many tasks currently performed by humans, such as property valuation and lease administration. It could also create new opportunities for companies that can leverage AI effectively. The real estate industry needs to prepare for the impact of AI. Companies need to start thinking about how they can use AI to improve their businesses and how to mitigate the risks associated with AI, such as job displacement.
The future of AI is uncertain, but it has the potential to transform many industries, including real estate. Companies that can adapt to this new reality will be the ones that succeed.
Challenges & Opportunities with AI
There are challenges and opportunities associated with AI in real estate. For example, the return on investment of AI because the technology is new and its capabilities are ever evolving. Job displacement, as AI automates tasks currently performed by humans. Difficulty integrating AI with existing technology infrastructures. And the legal and security risks associated with AI, e.g., data privacy concerns.
Opportunities include increased efficiency by automating tasks like lease abstraction and property valuation. Improved decision-making through AI analysis of large amounts of data to identify patterns and trends. Development of new products and services, such as creating personalised marketing materials for tenants.
Companies need to develop strategies to deal with the challenges and opportunities of AI, including identifying tasks that may be the most likely to be automated by AI and retraining employees for new roles. Also, developing a clear understanding of how AI can improve business processes and experimenting with different AI technologies to find the most effective ones for the company.
The future of AI in real estate is uncertain, but it has the potential to transform the industry. Companies that can adapt to this new reality will be the ones that succeed.
James Dearsley’s session sparked a lively discussion on data strategies in real estate. The conversation kicked off by diving into the industry’s data woes.
A key challenge is the lack of understanding about the value of data. Many struggle with inconsistent data collection, incompatible systems, and cultural resistance to data sharing. Furthermore, regional variations in infrastructure and unclear funding models for data initiatives add complexity. Finally, attracting and retaining data talent is a hurdle.
These challenges manifest as inconsistent data collection and measurement across building systems, difficulty in standardising data naming conventions, resistance to change and data-driven decision making and difficulty attracting and retaining data talent.
However, the potential benefits are significant. In terms of property management, data can optimise asset performance and rent collection. Investment decisions are made easier by using data to identify promising acquisition targets. Understanding rental trends and making informed decisions through market analysis also benefit from good data.
The discussion emphasised the developing stage of data adoption in real estate. While challenges abound, those who can effectively leverage data will find significant opportunities. Industry collaboration is key to developing and adopting data standards, although past attempts like the Pisces project have stalled due to lack of funding and enforcement.
Overall, the event was a fantastic opportunity to meet and learn from experts from across the real estate industry. Getting points of view from a range of different asset classes was incredibly insightful and provided a wide range of experiences and opinions on which to debate and discuss.
See what events we’ll be attending in 2024 and meet with Team Yardi. If you want to see how our unified property management and accounting technology can drive your digitalisation strategies, get in touch.