In a study by Harvard Business Review about the revolution of big data as a management tool, it was found that artificial intelligence used to analyze and apply data to decision making by those at the top of the CRE industry saw an increase of up to 6% in productivity compared to their competitors.
AI is changing the CRE game in several different ways and in turn, having an impact on all CRE sectors in different ways. Here are 5 ways AI is impacting the CRE landscape:
#1: Processing Paperwork
In all sectors, AI is changing the way we process paperwork. There are few industries that are required to process as many documents per transaction as CRE professionals, no matter the sector. From the start of the deal to the close, there are regulatory T’s to cross and legal I’s to dot. All of that is done more efficiently and with fewer errors through AI.
#2: Efficient Deal-Making
Again, in all CRE sectors, AI is making for much more efficient deal making. Not only is it helping to streamline and automate a lot of the paperwork, data is being drawn from each client and each deal for analysis using artificial intelligence.
Just as a computer can calculate numbers better and faster than any human, collecting the type of refined data coming out of AI programs in CRE is impossible without this technology. It is providing a huge advantage to CRE firms that are able to harness AI to prospect for better leads, provide personalized approaches, and thereby close deals faster.
#3: Personalized Customer Service
No CRE sector is experiencing greater impact from customer service AI than retail. In retail, machine learning like AI has fast become essential to attracting loyal customers. Already, much of customer service is being done using automated assistants, chatbots, and self-service features. However, AI is making it so that consumers in retail can expect to see more detailed and personalized customer service through the same granular data aggregation and analysis that is impacting all other sectors.
#4: Automation + AI
Particularly in industrial, we are seeing a complete overhaul due to AI. In fact, AI plus automation already accounts for about a fifth of retail giant Amazon’s warehouse personnel. Automated warehouses that use AI to sort and distribute orders reduce errors, eliminate insider theft, and speed up delivery processes in ways that were impossible without AI.
Although industrial is seeing the most impact from AI right now, expect the office sector and multifamily to continue to push the envelope in the AI + automation realm as well.
#5: Smart Tech Brokers
Finally everyone knows that Smart technology is impacting CRE. But what is greatly overlooked is the impact it is having on brokers and their brokerages. It is no longer enough to be the most knowledgeable about the values of square footage and cap rates without also understanding the ins and outs of smart technology as it relates to CRE. Multifamily is at the forefront of Smart tech as a feature of individual living spaces thus forcing many more brokers to become Smart tech savvy.