The results of a survey, by Remit Consulting, on the adoption of artificial intelligence (AI) within the real estate sector show a mixed level of integration among large firms, challenging the prevailing assumption that bigger companies are at the forefront of technology adoption.
The survey highlighted the challenge of not just adopting new technology, but also ensuring that staff are familiar with it and adequately trained in its use, with a notable proportion of those working for larger firms in the sector remaining unfamiliar with the technology, underscoring the complexities of integrating AI.
On a more positive note, the research uncovered that a significant majority, 64% of firms, are either experimenting with AI on a trial basis or using it ad hoc. This trend is largely driven by the accessibility of Large Language Models (LLMs), which have opened new avenues for creative and experimental uses of AI in real estate.
Andrew Waller of Remit Consulting commented: “This mixed reality of AI adoption within the real estate sector serves as a wake-up call to firms, underlining the importance of a holistic approach to technology integration beyond mere investment. As the industry looks to the future, the successful incorporation of AI will depend not just on the technology itself, but on the people behind it and the policies that guide its use.
“The findings from the survey underscore the urgent need for real estate firms to not only understand and embrace AI technology but also to invest in the training and development of their staff.”
The survey also highlighted a concerning gap in the sector's readiness, with only about a third of firms having established policies to navigate the challenges posed by the technology, including issues of confidentiality, intellectual property, and the credibility of AI-generated outputs. This lack of preparedness suggests that the real estate industry may be underestimating the importance of comprehensive policies in the era of AI.
“As the sector navigates the complexities of AI integration, the development of robust policies will be crucial in addressing the challenges and unlocking the full potential of the technology in real estate,” added Waller.
Remit Consulting presented the findings of its survey at Mipim 2024 during the BPF’s “Top Tech Trends in Real Estate: A global & UK perspective” at the JLL Marquee.