The real estate industry, long regarded as a slow adopter of emerging technologies, is now facing a turning point. Generative AI (Gen AI) and advanced analytics are converging with mountains of untapped real estate data to unlock new opportunities in efficiency, investment, and experience. With economic pressures, shifting work dynamics, and sustainability goals challenging the sector, the industry must act decisively to harness the power of AI.
Although Gen AI has only recently captured the public’s imagination, AI has been fundamentally changing the way the world does business for decades. This more familiar version of AI, also known as analytical AI, is goal oriented and focused on helping businesses predict future trends and make informed decisions. Analytical AI works toward specific goals, like estimating property values, forecasting market demand, or identifying cost-saving opportunities.
Gen AI, on the other hand, is a more recent development that has captured global attention. It represents a fresh opportunity for the real estate sector to rethink its strategies and catch up with other industries at the forefront of technology. Gen AI is capable of creating new content, simulating real-life scenarios, and generating insights from complex data sets—capabilities that can transform how the real estate industry operates.
For all the hype that Gen AI has received to date, many real estate organizations are finding it difficult to implement and scale use cases, and thus have not yet seen the promised value creation. This is not surprising: deriving competitive advantage from Gen AI is not as simple as just deploying one of the major foundational models. Many things must go right in an organization to make the most of the opportunity, including key elements like having the right executive support in making Gen AI a priority, organizational readiness for change, and the right capabilities and skillsets focused on AI solutions that create real value aligned with business goals.
For CEOs and other executives looking to lead the way with Gen AI, there are practical steps to follow:
1. Prioritize Technology: treat AI as a strategic priority, not just a tool.
2. Adopt Agile Practices: learn from tech startups that use agile methods to build and improve solutions quickly.
3. Build Internal Capabilities: companies don’t need to hire massive technology teams. Instead, they can invest in partnerships or small, nimble groups of engineers and designers who understand Gen AI and focus on delivering clear, measurable results.
Successful companies embrace experimentation, iteration, and even self-disruption. This means testing new ideas, learning from mistakes, and being open to changing long-standing processes.
At the core of any AI solution is data. Companies that have access to unique, high-quality data will gain a competitive edge by generating insights others cannot. It is important to begin to understand the data required to solve specific problems or uncover new opportunities. Additionally, recognizing where valuable data may already exist but is not being used effectively will help position for better use in the future model. Identifying gaps in the data collection process early on will ensure efficiency and completeness of data requirements.
Having the right data is only the first step. It must also be well-structured, properly managed, and easily accessible. Companies should invest in tools like data lakehouses, which allow them to store, organize, and analyze large amounts of information efficiently.
When building their technology infrastructure, organizations must prioritize data governance, clear rules about who owns the data, how it is accessed, and how it is used. A solid tech stack that simplifies data access and analysis will be essential for companies that want to succeed in a Gen AI-driven future.
The benefits of Gen AI for corporate real estate are vast. By embracing AI, companies can:
- Make smarter, faster decisions.
- Improve building efficiency and sustainability.
- Enhance satisfaction with personalized experiences.
- Stay competitive in an increasingly digital world.
The organizations that lead the way with AI will set new industry standards and unlock tremendous value. Those that hesitate may find it harder to keep up as technology continues to evolve.
AI, particularly Gen AI, is set to become a transformative force in the industry. While challenges remain, forward-thinking leaders can take steps today to integrate AI, rethink traditional practices, and create a foundation for long-term success. By prioritizing technology, focusing on data, and encouraging organizational flexibility, companies can become more efficient, innovative, and future-ready.
The time to act is now. AI is not just a trend, it is a game-changer for corporate real estate in 2025 and beyond.
