What is AI (Artificial Intelligence)?

Artificial intelligence can be said as the development of intelligent machines. Basically, Artificial intelligence (AI) is a set of algorithms and statistical models that leads to the development of computer systems to perform tasks that typically require human intelligence, such as perception, reasoning, learning, and decision-making.

It involves the development of algorithms, computer programs, and neural networks that allow machines to learn from data and improve their performance over time, without explicit instructions from humans. 

AI technology has the power to understand human language, learn patterns and experience, make predictions, and even generate creative outputs like music and art.

Essentially, artificial intelligence strives to replicate and enhance the cognitive abilities of humans, permitting machines to perform tasks that were once thought to be uniquely human.

AI includes various subfields such as machine learning, natural language processing, computer vision, and robotics, which are used to create intelligent systems that can automate and optimize various processes in different industries.

Although AI technology and the human brain are incomparable because they don't possess the same learning abilities. However, it's still revolutionizing the commercial real estate sector by providing property management solutions to their problems.

Let us give you five examples of property management software that uses AI.

• Workfit: 

Meetings can be a hassle to organize and manage, but with Workfit, an office assistant AI named Eva can simplify the process. Eva is a perfect example for artificial intelligence that records everything said during meetings and creates task lists based on important decisions made.

It even sends relevant documents and information to participants and updates a client's profile in a CRM system. This AI technology eliminates the need for manual minute-taking and ensures that nothing gets forgotten, reducing delays in projects caused by forgotten follow-ups. 

For property developers, the automation technology of Workfit makes meetings more efficient and productive.

• BioConnect:

When it comes to commercial real estate a lot of confidential data gets involved and therefore security becomes the prior factor in this sector.

BioConnect, an innovative AI technology, offers commercial property developers a reliable solution for building security. This AI security system uses biometric features such as fingerprints, eyes, unique facial features, and heartbeats to ensure only authorized individuals have access to a building. 

This added layer of security not only prevents unauthorized access but also helps property developers market their buildings as safe and secure. With the ability to learn about the individuals who should and should not have access, BioConnect allows developers to tailor security measures to specific business needs.

As a result, BioConnect is an invaluable technology of the future asset for property developers looking to enhance their building's security and reputation.

• IKEA: 

By using technology-driven AI and augmented reality, the furniture brand IKEA has revolutionized the way we buy furniture and also gives us an insight into how we could use similar technology to sell a property. 

With its IKEA Place app, customers can view a range of furniture from the company's online catalogue and virtually place those items into their own homes.

This technology can also be applied to property development, where a developer can create a digital catalogue of furnishings and use augmented reality to show clients how an empty home would look when furnished. 

By analyzing which furniture setups are most popular with clients, this technology can even inform future design decisions. This might help commercial reals estate sales to increase their profit. 

• Leverton.

In the world of property development, data accuracy is critical for success. Small mistakes during the early stages of design can snowball into major issues during construction, causing costly delays and setbacks. Unfortunately, these mistakes often arise due to human error when inputting data from documents.

This is where Leverton comes in. Leverton is a platform that harnesses the power of deep learning AI to read data from documents and input it into digital systems with a high degree of accuracy. As the platform is used more frequently, it continues to learn and improve, quickly recognizing which data is needed from different document types.

What's more, Leverton is smart enough to notice when data is missing from a document and will signal for human review if it's unsure of the accuracy of the data it collects. This not only streamlines the data input process but also ensures that the data is as accurate as possible, which is crucial for the success of any property development project.

In essence, the automatization power of Leverton provides a solution that saves time and increases accuracy, allowing property developers to focus on other important aspects of their projects.

• 1aim

1aim is a groundbreaking software designed to optimize the utilization of available spaces for businesses. Although it's not classified as an artificial intelligence platform exclusively for property developers, it's a game-changer for developers in the commercial real estate industry.

This intelligent software operates by monitoring and collecting data on a business's processes and space utilization patterns. It then analyzes the data and provides expert advice to business owners on how to organize their workspaces better. Additionally, it can regulate employee access to various areas, streamline a business's utilities, and detect inefficiencies in the workplace model.

What's remarkable about 1aim is that it allows developers to create properties tailored to meet the needs of their clients. By using this technology, developers can optimize the internal building design, creating efficient workspaces that promote productivity and sustainability. In essence, 1aim is a turning point that empowers developers to create high-performance buildings that offer better value to their clients.

How AI is Benefiting CRE?

The future of commercial real estate is already here at the forefront and has the full potential to completely transform the real estate industry. Some of the significant advantages of using AI in your business are explained below:

1. Data-driven decision.

We know that the Commercial Real Estate industry produces a generous amount of data, ranging from tenant demographics to market trends. Here, the transformative power of artificial intelligence (AI) provides valuable insights and utilizes those data properly that can be used for sound business decisions.

With machine learning algorithms, it can analyze large datasets and provide predictive analytics to support real estate professionals in making wise decisions. This encompasses identifying lucrative investments and streamlining property management operations.

One of the biggest benefits of AI and machine learning is their ability to examine vast amounts of data quickly and accurately. This authorizes real estate agents to decide matters and fall to conclusions that would be difficult to achieve using traditional methods. 

AI can identify possible patterns and trends that may not be obvious to human analysts. This enables real estate professionals to gain a better understanding of market trends and forecast future demand.

       2. Increased Efficiency: 

AI has the power to automate repetitive and time-consuming tasks such as document processing, lease administration, and financial modelling, allowing real estate professionals to focus on higher-value activities.

Additionally, AI’s automation business pattern recognition abilities can help forecast risk and improve manual property appraisal by taking into account various factors such as transportation, environment, local amenities, and infrastructure improvements that impact property value.

Improving property management efficiency, predictive analytics algorithms of AI can identify maintenance issues before they become bigger problems, enabling real estate companies to be more proactive in their maintenance efforts. Resulting, low maintenance costs and a highly affirmative tenant experience.

     3. Streamlined Customer Experience: 

Imagine a world where AI is your personal assistant in the real estate industry and holds the capability to analyze market data and recommend properties for brokers to buy or sell, based on past sales records and intent. 

Natural Language Processing (NLP) algorithms could understand what matters to customers and make personalized offerings based on their preferences.

With AI and machine learning one is provided more bespoke and seamless customer experience. AI-powered chatbots and virtual assistants offer 24/7 customer support, providing a personalized and enhanced experience for tenants and investors. Several commercial real estate websites have used chatbot for customer services for better performance on customer experiences.

Moreover, by analyzing data on tenant preferences and behaviour, AI can help real estate companies better understand their customers' needs and preferences, leading to a more positive tenant experience. You will find various technology companies using a chatbot on website of their for providing personalized experiences.

Predictive analytics algorithms can preempt potential issues even before they take place. AI-powered chatbots could answer any question from potential prospects and make recommendations without the need for a commercial real estate sales agent. With AI in lead management, marketing, and sales, the possibilities are endless.

Unlocking the Potential of AI in Commercial Real Estate: Opportunities and Challenges Ahead.

The adoption of AI and machine learning in commercial real estate (CRE)  deals with leveraging the strength of advanced algorithms and statistical models to scrutinize an enormous amount of data. Proferring plentiful opportunities and daunting challenges AI and machine learning has become a sweeping-change revolution in the industry.

Investing in commercial real estate is terrifying, despite the significant challenges companies that are willing to invest in their technological infrastructure can reap the rewards of a competitive edge over those that do not.

The need for significant investment in technology management, such as data storage and computing power is one of the biggest challenges. Investment in those technologies is pricey, and companies must be heartfully willing to hand out resources towards it. But to its proper technology solutions by AI and machine learning, the investment can be fruitful and worthwhile.

The availability and quality of data are other challenges as well. Access to large volumes of high-quality data is something that Commercial Real Estate (CRE) Developers must have access in order to make AI and machine learning effective. In markets where data is not readily available, companies may need help obtaining and analyzing this data.

Furthermore, security and data privacy is also something important that needs to be taken care of. The utilization of Artificial Intelligence software and machine learning prompts inquiries regarding the accessibility and handling of data. Such concerns centre around determining who possesses the right to access the data, as well as ensuring the ethical and responsible utilization of this information.

Apprehensions concerning the possibility of cyber threats and data breaches could lead to severe repercussions. These concerns have forced the implementation of cybersecurity to safeguard valuable data from falling into the wrong hands.

Even after all the daunting challenges, you will find plenty of opportunities in the industry as well. Facilitating better decision-making processes, enhancing customer experience and automatization property management systems are some of the ways that AI and Machine Learning hold immense potential to revolutionize commercial real estate.

Overall, Companies, that embrace these technologies and use them to their advantage are more likely to stay ahead of the curve and succeed in the long run. While the challenges of the AI revolution in commercial real estate are significant, the opportunities are even greater, making it an exciting time to be part of the industry. 

The days of traditional, slow-moving commercial real estate are numbered, and the industry is set to enter a new era of efficiency, profitability, and innovation driven by AI and machine learning.