A new national research report by MRI Software reveals the growing frustration among senior professionals in Australia’s $31.4 billion Commercial Real Estate (CRE) industry due to manual processes and disparate data sources. Concurrently, nearly half of these professionals express a keen interest in prioritizing digital automation technologies, such as Artificial Intelligence (AI), Internet of Things (IoT), and predictive analytics, in the fiscal year 2024.
The report, titled “Digital Transformation Journey,” emphasizes the urgency of automation, with over three in four (76%) CRE C-suite and director-level professionals citing it as a priority across all business aspects by 2028. Notably, 47% identify AI as a specific priority within that timeframe, while 46% plan to focus on IoT or ESG-initiatives like “smart buildings,” and only 29% intend to pursue predictive analytics solutions.
URGENT CALL BY CRE INNOVATORS
In addition to survey data, MRI Software conducted in-depth interviews with industry transformation and sustainability leaders from organizations such as Cygnet West, Investa, ISPT, JLL, and Schneider Electric. These leaders emphasized the urgent need for industry-specific digital transformation solutions.
Joanna Marsh, Advanced Analytics and Innovation Advisor to Investa, highlighted the disparity between the urgent need to automate and the lack of conscious investment in property-industry-specific digital transformation solutions, calling it “short-sighted.”
Nikki Steadman, Senior Director for Asia Pacific Professional Services at MRI Software, offered an optimistic view of the 47% AI-invested result, suggesting an impending tipping point in industry adoption. Steadman emphasized the transformative potential of AI technologies in streamlining operations and driving business growth.
Amanda Steele, Group Executive Head of Property for ISPT, believes that AI-driven technologies, particularly generative AI, will reshape the industry and transform service delivery to clients.
AI ADVANTAGES TO COMMERCIAL REAL ESTATE INDUSTRY
According to Mark Cohen, Asia Pacific Vice President for Product Innovation at MRI Software, AI offers numerous workflow efficiencies and benefits, including:
- Measurable efficiency boosts in property and facilities management through automation
- Development of best practice digital leasing processes and online tenant experience services
- Cost savings and accelerated adoption of sustainability-focused property innovations like smart building management
- Handling larger volumes of data for market research, predictive analytics, and strategic decision-making
- Uncovering key insights hidden in corporate and legal documents to streamline processes.
