The pace of Artificial Intelligence (AI) adoption in the property sector is rapidly accelerating, although a significant portion of professionals are yet to fully embrace its potential, reveals the latest Yardi/Property Council Digital Transformation Report.
In a survey encompassing 341 property professionals, 35% believed that AI would bring about a “revolutionary impact” on the sector, while 58% acknowledged its potential for significant influence. However, the perception of AI’s impact varied across sectors, with 63% of respondents from financial institutions viewing AI as revolutionary, compared to only 18% of fund managers.
Mike Zorbas, Chief Executive of the Property Council of Australia, noted that 2023 marked a breakthrough year for AI, with the property sector actively seeking opportunities to integrate these systems.
“The AI genie is out of the bottle. With the disruption caused by automation, artificial intelligence, smart building systems, and intelligent devices, business as usual is shifting. While strategy is essential to enhance productivity through chatbots and co-pilots, leading organizations within the real estate industry are now harnessing AI’s capabilities to streamline processes and provide superior services,”
Mike Zorbas, Chief Executive of the Property Council of Australia
Despite the growing interest in AI, approximately one-third of survey participants have not yet implemented AI, with an additional 28% uncertain about their next course of action. Just over 40% are preparing to leverage AI, while 26% have already begun implementing AI systems.
A companion survey conducted by Yardi among Asian property professionals revealed significant anticipation for AI’s impact. In Mainland China, 56% foresee groundbreaking changes, while in India, 67% anticipate dramatic shifts.
Bernie Devine, Senior Regional Director of Asia-Pacific at Yardi, highlighted that despite three years of disruption and pandemic-driven acceleration in property’s digital transformation, 62% of respondents still perceive the property industry as lagging in technology adoption. Mr. Devine stated.
“This number has risen 12% since our 2022 survey, indicating that the industry feels it is missing out on the current technology boom. However, we are witnessing the rapid advancement and implementation of AI and tech solutions, prompting companies to reassess their technology strategies to keep up with the pack. While real estate companies must proceed cautiously with AI, most survey respondents acknowledge its potential as a game-changer and are exploring ways to integrate these systems into their business. AI chatbots are simplifying lease negotiations, rent collection, and maintenance scheduling, providing just a glimpse of what lies ahead.”
Bernie Devine, Senior Regional Director of Asia-Pacific at Yardi
In contrast to the 62% who believe that real estate lags behind other sectors in technology, 31% consider it on par with others, and 7% perceive it as leading the way.
The real estate industry is prioritizing organizational improvements, with 45% aiming to streamline business processes and 30% focusing on enhancing data timeliness and accuracy as their top information management priorities for 2024.
