Harvard Business Review recently conducted a study about the revolution of big data as a management tool, writes NAI Global’s Lindsey Imperatore. The study revealed artificial intelligence (AI) used to analyze and apply data to commercial real estate (CRE) industry leaders’ decision-making saw a 6% productivity lift compared to their competitors.
Artificial intelligence is altering the CRE industry in numerous ways. Here are five of the ways AI has impacted the CRE landscape, according to NAI Global:
- Paperwork Processing
While AI has altered how paperwork in processed in all industries, there’s perhaps no industry that has to process as many documents per transaction as CRE. From the beginning of a deal until it is closed, there are numerous regulations and legalities that have to be addressed. All of the fine print is accounted more efficiently and with fewer mistakes thanks to AI.
- Efficient Deal making
Artificial intelligence has made deal making a much more efficient practice. A lot of the aforementioned paperwork is now streamlined and automated and AI can pull data from every client and deal for analysis. Similar to how a computer can calculate figures faster than a human can, AI programs can collect refined data that would be otherwise would be impossible to get. CRE firms can use AI for lead generation, provide personalized approaches and finalize deals quicker.
- Provide Personalized Customer Service
Retail is perhaps the CRE sector enjoying the impact AI has had on customer service the most. The machine learning capabilities of artificial intelligence are a crucial part of helping retailers entice loyal customers. A lot of customer service is handled with automated assistants, chatbots and self-service features. However, now AI has created an environment where retail customers can experience much more detailed and personalized customer service courtesy of the same granular data aggregation and analysis that other sectors have.
- The Automation and AI Combo
According to NAI Global, AI has overhauled the industrial sector. AI combined with automation makes up approximately 20% of Amazon’s warehouse personnel. Automated warehouses that use AI to organize and send out orders does so with fewer mistakes, don’t have to worry about theft from the inside and the delivery process is faster than it would ever be without AI.
While AI has had the biggest impact on the industrial sector now, it’s expected the office and multi-family sectors will also leverage the AI and automation combination heavily, too.
- Smart Tech Brokers
It is no secret smart technology has had an impact on CRE. What’s less known however, is smart tech’s impact on brokers and their brokerages. Knowing the values of square footage and cap rates is not enough to dominate the industry anymore—brokers have to understand how smart tech as it relates to CRE works now, too.
As multi-family leads the charge in terms of smart tech being one of individual living spaces’ features, expect to see more brokers getting educated on smart technology.
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