Lots of AI, and retrofitting for ESG (we also discovered where the best place in the world is if you’re a dog.)
The Mipim conference, held in Cannes in March, once again shed light on the transformative power of technology in the property sector, and at this year’s four-day event, it was Artificial Intelligence (AI) that everybody seemed to be talking about.
It was not a surprise to us that AI was the topic at the heart of conversations about innovation within real estate, and we arrived in Cannes well-prepared with the findings of our new “AI in Property” report.
Its findings on the adoption of AI within the industry and its eagerness to embrace this transformative and disruptive technology were presented by Andrew Waller at the BPF’s technology event in the JLL Pavilion. It didn't go unnoticed, and both Mipim News and Costar featured the launch prominently.
The survey revealed a varied degree of AI integration across large enterprises, questioning the common belief that larger organisations are always pioneers in embracing new technologies. It underscored the difficulty of not only implementing cutting-edge technology but also the importance of making certain that employees are well-versed and proficient in its application. This highlighted that a significant number of employees at bigger firms remain unacquainted with the technology and confirming the intricate change management challenges involved in assimilating AI into the workplace.
One of the questions in the survey asked respondents to give their expectations for the areas of use of AI. As the real estate sector races towards Net Zero, it was no surprise to find that ESG and topics such as the monitoring and management of energy consumption using AI were high on the list.
ESG was also a hot topic at Mipim and there was an emphasis on retro-fitting as a sustainable solution, with delegates underscoring that it has never been more critical to the industry and society. However, there was a word of caution from one speaker, who pointed out that, without the careful management of HVAC systems in retro-fitted properties (and others), these efforts risk inefficiency. Thankfully, digital innovation and AI offer a smart solution.
Other things we learnt about AI at Mipim:
In a notable shift, industry professionals are gravitating back to ChatGPT over Google's Gemini, seeking a more user-driven experience rather than one dictated by algorithms.
Anton Newton of Pinsent Masons likened AI to a Sat Nav—a tool that aids but doesn't override human judgment.
Yalda Gerami from Salesforce highlighted a startling gap, with only 4% of companies possessing AI-ready data.
Matthias Hallwich of HWKN Architecture provocatively stated that AI has overturned traditional architectural value models, a sentiment echoed by HWKN's use of AI to produce thousands of architectural models overnight.
In response to a public consultation on a new development, HKWN used AI to produce 5,000 architectural models in one day, based on comments, suggestions, ideas, likes and dislikes, etc.
A tech company from Israel, called Swapp, has innovated the production of construction drawings, accelerating the process from weeks to hours, exemplifying the efficiency AI has brought to the sector.
Things we learnt about the Investment markets:
Pinsent Masons's debt specialist predicted numerous transactions in the market later this year. However, others in the Debt Market disagree that there will be lots of deals this year, as capital flows still have the handbrake on due to interest rates.
The Fund Administration market is undergoing a major transformation because of technology according to at least one commentator.
There was a general agreement at Mipim that a recovery in the Capital Markets is coming, but there are limited opportunities for investors at the current time.
Odds & ends and our favourite quotes from Mipim:
On the topic of the Return to the Office, a top-five building surveying firm in the UK is insisting that its graduates are in the office five days a week.
Our favourite name for a Proptech Startup we came across at Mipim is Gropius.
"Miami is the best place on Earth to be a dog." Chair of Miami Realtors Association
“Annually, 3,150 million tons of C02 was produced by real estate in Europe in 2023.” This is the equivalent to the weight of the Great Barrier Reef.
"Spaces with corners make you more aroused.”