AI and CRE – A helpful tool but Humans still required
One of the most interesting sessions at the recent SIOR Global conference in Berlin was about AI, its users and potential to disrupt our industry.
Excellent panel contributions by, Dr. Thomas Beyerle, Stefan Jansen, Philip Schlenkhoff and Andreea-Maria Mandeal, some memorable one liners and thoughts (listed below). I came away relieved that human real estate brokers will still be required….for the next while anyway.
- “AI – 10 years ago it was called Proptech”
- “AI – It’s an evolution not a revolution”
- “Data is the new oil”
- “AI will harvest the information; it may even send out the information or eventually make calls on our behalf but you’ll still need a broker to craft and close the deal”
A very useful comparison on how AI has developed is to look at Google Maps. Early doors, it would simply show you the (one) way (it knew) to get to your destination. Now, using AI, it will not only list several routes but can also determine, in real time, which is the quickest and most fuel efficient. That’s my AI “light bulb” moment right there.
For most of us more middle-aged folk, AI use is limited to ChatGPT, for, what those in the know call, ‘content creation’ or what the rest of us refer to as a DRAFT. Helpful as a starting point for most who then add on their views/points. AI in CRE marketing can mean Virtual (VR) tours of property. These are here to stay and will improve year on year.
For some companies, developing and investing in AI is a long-term plan. All panel members agreed that it could take up to 10 years for many of these companies to fully understand and develop AI tools that will become genuinely helpful for their businesses. That was not what I was expecting to hear.
Data collection is easier in the US than in Europe due to strict privacy and data protection laws. We heard that this will hinder the development of AI in Europe as a result. Also, China, with its declining population, is investing heavily in its AI development believing it to be a hedge against future jobs for which there may not be enough humans.
My own view on AI – it has huge potential to make our everyday lives easier (I’m in the Google Maps camp) but its role in CRE in Europe may be limited to administrative and marketing advantages. Humans still required.
Author: James Mulhall
