As with all new technologies, GenAI presents challenges alongside the promised benefits. One of the main challenges is the impact on the existing workforce in functions such as administrative support, legal, IT and customer support. As was the case with digital transformation, the negative impact on jobs will be balanced with the creation of a new ecosystem of jobs and functions that do not exist today. The World Economic Forum predicts automation will actually result in a net increase of 58 million jobs,¹ replacing repetitive tasks and dangerous jobs with challenging work that creates more interfaces with customers and a better product. A lack of transparency, questions about accuracy, and the potential for bias and misinformation are some of the risks that will also need to be addressed with safe, responsible and ethical AI use. In addition, companies need to work through GenAI’s impact on cybersecurity, intellectual property and fraud challenges that will come into play.
Real estate is one of many sectors that is transforming itself with GenAI. Real estate companies have faced an operating environment where it is challenging to attract and retain talent, meet increasing investor demands and keep up with technology trends, such as advanced data and analytics and smart buildings. In addition, real estate companies do not want to have to scale their costs in line with growth of assets under management. GenAI has the ability to help address all these challenges.
GenAI in real estate
GenAI has a role to play in creating opportunities for greater efficiency, mitigating risk through its ability to rapidly scan data and identify any concerns that may exist, and potentially paving the way for new business models. Use cases for AI in the commercial real estate sector and across the real estate value chain include:
