Like every new technology, GenAI brings challenges along with the promised benefits. One of the main challenges is the impact on the existing workforce in functions such as administrative support, legal, IT, and customer support. As with any digital transformation, the negative impact on jobs will be offset by the creation of a new ecosystem of jobs and functions that do not currently exist. The World Economic Forum predicts that automation will actually result in a net gain of 58 million jobs, replacing repetitive tasks and dangerous jobs with more challenging work that interfaces with customers and produces better products. Lack of transparency, questions about accuracy, and the potential for bias and misinformation are some of the risks that must be addressed in a safe, responsible, and ethical use of AI. Additionally, companies will need to address the impact of GenAI on cybersecurity, intellectual property, and fraud challenges.
Real estate is one of many sectors being transformed by GenAI. Real estate companies face a challenging operating environment to attract and retain top talent, meet growing investor demands, and keep up with technology trends like advanced data and analytics and smart buildings. Additionally, real estate companies don't want to scale their costs as assets under management grow. GenAI helps address all these challenges.
GenAI in Real Estate
GenAI helps create opportunities for increased efficiency, reduces risk through its ability to quickly scan data to identify concerns that may exist, and paves the way for new business models. Some examples of the use of AI in the commercial real estate sector and across the real estate value chain include: