As I was reminded, at the Remit Consulting Associates’ Meeting in December, it's a brave new world in real estate.
The theme of the day was Artificial Intelligence (AI) - the proverbial genie that, from property and asset management to valuation and ESG, is rapidly reshaping our industry. The insights from Andrew Knight of The RICS, Karl Limbert from Equans, and Joel Suissa of Cushman & Wakefield got the cogs turning for those in attendance.
The art of the possible and the pitfalls
While AI, with its predictive prowess, is revolutionising the property lifecycle, it comes with a set of challenges. Data privacy, ethical considerations, and the reliability of AI are not just footnotes; they are significant hurdles. Andrew Knight's reminder that AI, much like a keen-to-please apprentice, might conjure up 'truths' to align with our expectations was particularly striking. Imagine an AI-designed office floor plan featuring no doors – a quirky yet cautionary example of how AI's eagerness to please could misfire.
Climate crisis: can AI be our knight in shining armour?
Karl Limbert's perspective was a stark reminder of our times. The built environment faces its nemesis in ‘old fashioned’ climate change, Karl explained, and despite our best efforts, the net-zero goal seems like a distant mirage.
AI could be a beacon of hope, capable of predicting risks and aiding in the construction of buildings resilient to various climate extremes. However, it is the crucial role of big tech companies we should focus on. When the top six tech companies combined equate to the third largest economic entity globally, it is no surprise that the influence of ‘big tech’ in the global economy is shaping our approach to environmental sustainability.
Data dilemmas and legal labyrinths
Data ownership in property circles has always been a complex puzzle. AI complicates this further, intertwining mass data sharing with intricate legal frameworks and privacy concerns. Joel Suissa's insight that lawyers are some of the most wary of AI's inconsistent performance was a notable highlight. The tension between the potential benefits of AI-enabled data sharing - enhanced market analysis, better predictive models for property valuation, and more efficient property management systems - and the risks of data breaches and misuse is a tightrope which we need to walk with care. The requirement for data to be universally ‘good’ makes this tightrope even more fragile.
AI: a tool, not a replacement
The Associates’ Meeting’s discussions underscored a crucial point: AI's growth in real estate isn’t just about automating tasks; it's a paradigm shift in business operations. As we navigate the post-pandemic economy, the integration of AI tools to complement traditional methods is not just advisable; it's imperative. The adage that resonated with me was: "You won’t lose your job to AI, but you may lose it to someone who uses AI."
The challenge for us is to harness this technology responsibly, balancing its potential with its pitfalls, to steer the real estate industry towards a sustainable, efficient, and equitable future.
To learn more about our Associates’ Meetings, other Remit Consulting events or how we are helping clients navigate AI challenges in their business, please contact Emily Bates.