Despite its potential, AI may be unsuitable in some circumstances because it is still in development. This needs an understanding of its capabilities and limitations. For example, in emergencies or complex situations such as title issues in land acquisition requiring detailed analysis and explanation, AI’s drawbacks are obvious.

AI excels in efficiently summarising information from unstructured data, improving customer interaction through chatbots and showcasing creativity by generating content such as text and images. It provides coding solutions such as interpretation, translation and code generation.

Despite the challenges, now is the time for the real estate industry to adopt AI. AI has evolved to tackle companies’ unique difficulties. By leveraging AI technologies, businesses can offer innovative solutions and gain a competitive edge. To harness AI benefits fully, real estate companies must adopt a strategic approach, starting simply, identifying two initial use cases and gradually expanding the scope of AI integration. In parallel, there should be investment in teams proficient in AI technologies.

Many real estate firms have difficulty in applying and scaling AI despite its benefits. A competitive advantage through AI goes beyond merely implementing models; it involves aligning mindsets. It requires a fundamental shift in operational models and job roles. New positions and skills, such as rapid and data engineers are essential for effective performance. By devolving mundane tasks to AI tools, employees can focus on specialised functions, adopting innovation and productivity.

AI will revolutionise traditional real estate practice. Data analytics and machine learning will allow companies to optimise from property management to customer relations and marketing strategies. This will drive more informed decision-making, enhancing overall efficiency.

Improvement means more efficient operations, enhanced customer experiences, improved tenant retention, new revenue streams and smarter asset selection. AI’s capabilities include website and marketing optimisation, legal document analysis, architectural design assistance and space usage.

For maximum AI benefits, real estate companies may take these key actions. They should modernise their technology infrastructure, keeping it up-to-date, secure, and scalable. Businesses can adopt new operating patterns through evolving models and job functions to integrate AI seamlessly into daily workflows and processes. Companies must enhance data focus, identifying and tailoring proprietary data to produce distinctive insights and gain competitive advantage.

Real estate businesses must offer actionable digital solutions through tools that streamline adoption and optimise effectiveness. Companies must nurture expertise and form teams of engineers and designers proficient in AI to develop innovation. Management must encourage executive alignment, linking business-centric strategies with real estate functions to secure top-level buy-in.

While integrating AI into real estate operations has risks, the benefits far outweigh the challenges. By understanding risks, identifying limitations and seizing opportunities, real estate companies can overcome structural challenges, drive innovation and become industry leaders in the digital future. AI is not optional but necessary for real estate companies looking to thrive in an increasingly competitive market.

This article was originally published in Indian Business Law Journal on 28 February 2024 Written by: Ashoo Gupta, Partner. Click here for original article

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