In a groundbreaking shift for the commercial property industry, a recent national research report from MRI Software reveals that three out of four executives are gearing up to prioritize automation in 2024. The $31.4 billion Commercial Real Estate (CRE) sector in Australia faces challenges tied to manual processes and a plethora of disparate data sources, leading senior professionals to express frustration.
The report highlights that nearly half of these professionals are eyeing digital automation technologies, including Artificial Intelligence (AI), Internet of Things (IoT), and predictive analytics, during the fiscal year 2024. According to MRI’s Digital Transformation Journey report, a substantial 76% of CRE C-suite and director-level professionals consider automation a pressing priority across all facets of their business until 2028. Notably, 47% specifically identify AI as a priority within the same timeframe, while 46% plan to focus on IoT or ESG initiatives such as “smart buildings,” and 29% intend to pursue predictive analytics solutions.
This surge in interest in AI and automation has prompted industry innovators to issue a call for urgent action. In-depth interviews with transformation and sustainability leaders from prominent organizations underscore the need for property-industry-specific digital transformation solutions. The lack of a centralized data source in real estate and the abundance of unstructured property-related data highlight the necessity for AI language models tailored to the nuances of the industry.
Joanna Marsh, Advanced Analytics and Innovation Advisor to Investa, emphasizes the short-sightedness of the gap between the urgent need for automation and the lack of conscious investment in industry-specific solutions. Nikki Steadman, Senior Director for Asia Pacific Professional Services at MRI Software, interprets the 47% interest in AI investment as a positive sign of an impending tipping point, suggesting that the next five years will be transformative for the industry.
Amanda Steele, Group Executive Head of Property for ISPT, envisions AI-driven technologies, particularly generative AI, reshaping the industry by enhancing tasks like lease abstraction and fostering improved connections with tenant partners. Mark Cohen, Asia Pacific Vice President for Product Innovation at MRI Software, outlines the manifold benefits of AI, from automating property and facilities management to cost savings and accelerated adoption of sustainability-focused property innovations.
In essence, the commercial real estate industry is on the cusp of a significant transformation, with AI poised to revolutionize everyday workflows, boost efficiency, and usher in a new era of strategic decision-making.