Artificial Intelligence - Consequences for Real Estate

The potential of artificial intelligence (AI) to transform businesses, industries and society has been building for decades. But recent advances have moved the science from a narrow focus to broad applications. The technology's ability to write, draw, code and compose has corporate leaders thinking about the opportunities and threats AI poses to their future.

For commercial real estate, it is clear that the strategic adoption of AI can transform the sector. JLL's Global Real Estate Technology Survey 2023 recognized AI and generative AI as one of the three technologies that investors, developers and corporate tenants believe will have the greatest impact on real estate over the next three years. Less clear are the details of exactly what will happen next. Respondents indicated the least understanding of AI and generative AI compared to other technologies such as blockchain, virtual reality and robotics.

What is AI and generative AI - what is the difference?

First, it is important to clarify the scope of the discussion by distinguishing between the definitions of AI and generative AI. AI broadly uses machine learning and deep learning algorithms to perform tasks that require the ability to learn from experience, understand complex concepts, recognize patterns, interpret natural language nuances, and make decisions independently.

Generative AI is a subset of artificial intelligence that focuses on creating new content, designs or solutions. It uses advanced algorithms to create outputs including synthetic data, images, text and music. Both AI and generative AI will have an impact on commercial real estate. In this article, we focus on AI in a broad context, especially emphasizing the role of generative AI where applicable.