As artificial intelligence prepares to transform Australia’s office market in the coming decade, what advantages will landlords and tenants gain?
A new research report from CBRE, titled AI’s Impact on Australian Office, explores how advancements in artificial intelligence (AI) could revolutionize the Australian workplace and its surrounding environment.
“Large Language Models (LLMs) like ChatGPT are leading the way in AI’s practical applications and will redefine our future work environments.”
Tom Broderick, CBRE’s head of office and capital markets research in Australia
While the full effects of AI over the next 20 to 30 years remain uncertain, Broderick notes that the coming decade will provide a clearer picture. This period is expected to see the widespread adoption and maturation of current AI technologies, which will increasingly integrate into various aspects of our daily lives.
One significant benefit anticipated is a reduction in office operating costs. AI is expected to enhance efficiency in cleaning and maintenance by allowing robots to quickly adapt to new environments and perform tasks autonomously. For instance, common area cleaning and maintenance expenses currently make up about 15 percent of outgoings for prime CBD buildings in Australia, with the cost of cleaning a 5,000-square-meter office estimated at up to $160,000 annually.
Broderick also anticipates a “revolution in office design” driven by AI. AI will facilitate automated layout planning and furniture arrangement, improving both efficiency and comfort. By analyzing workplace data, AI can create dynamic 3D models and suggest modifications based on team interactions and space utilization. This capability will enable real-time adjustments to workspaces, promoting better collaboration and productivity while forecasting future space needs.
The report further indicates that AI could accelerate the development of smart office buildings by providing real-time analytics to:
- Optimize energy consumption
- Enhance security measures
- Analyze occupancy patterns
- Predict maintenance requirements
- Adjust lighting and HVAC systems to improve environmental impact
With the productivity gains from AI, Broderick suggests that companies might increasingly consider more flexible work arrangements. Australian businesses are already exploring four-day work weeks to boost employee well-being, productivity, and work-life balance, which could affect office usage. However, peak day utilization, typically from Tuesday to Thursday, might see less impact.
Broderick also mentions that advancements in driverless car technology could reduce traffic congestion and commute times, potentially encouraging more office attendance.
To fully leverage AI, Broderick emphasizes that companies will need to invest in top-tier technology infrastructure. This includes robust computing power, high-speed networks, and advanced security systems to support the complex algorithms and extensive data processing required by AI technologies.
