Artificial intelligence is reinvigorating real estate

Generative AI is rapidly expanding the possibilities of real estate spaces, changing how we use them and how we design and invest in our built environment.  What may seem at first to be a misalignment – the further shift into artificial intelligence impacting on conventional ways of living and working – is in fact a highly beneficial relationship. While it is reassuring to see current moves toward a multilateral government effort at fitting guardrails against the worst conceivable outcomes of AI misuse, the implications for the real estate industry in the exponential development of generative AI – and therefore for businesses and communities around the world – are overwhelmingly positive.  In real estate circles, we need not fear AI, we should instead embrace it. 

Why is this?  Let’s begin with the nature of work itself.  Yes, AI will continue to replace and change many traditional occupations but is also already creating an array of new opportunities, requiring exactly the skillsets and interests of the digital native generations.  Fears of mass unemployment directly caused by AI are already easing given resiliently buoyant employment markets across much of the world, even where there is low or no GDP growth.

At JLL , we look very closely at the overlapping and interlinking trends behind this.  Take the office sector – the stories of terminal decline in the office market given the technology-enabled success of remote working, at its height during the pandemic, have now turned the page to find more-and-more organizations recognizing the business value and cultural benefits of bringing people together in office spaces.  But the spaces themselves, and what we need and expect of them, are changing.  Technology is playing a massive part in all aspects of this.  Offices and central business districts are not in irreversible decline, but they are changing, becoming more rather than less people centric.  City authorities and the real estate industry need to move even faster to fully recognize and embrace these changes.  AI will play a big part in facilitating this, both at conceptual and more granular and practical levels. To give just one example, it seems amazing to me that JLL GPT – our dedicated real estate focused generative AI tool – was launched less than two months ago.  Amazing because it has already become such a familiar feature of daily working life here at JLL, with thousands of colleagues around the world now regular users.  Given the highly enthusiastic reaction from our own people, we are very excited by what more it can bring in future as we extend functionality to our clients.  JLL is spearheading thinking on AI applications for real estate, driven by our industry-leading investments in technology and data capabilities and businesses.

Last week, here on LinkedIn, several of our JLL Technologies leaders contributed to an engaging live webinar on ‘The future of generative AI in real estate’ (you can view a recording here).  It makes for fascinating viewing, throwing further light on the accelerating pace of progress and sheer scale of opportunity for the real estate sector. Writing this blog while on my latest business trip to Japan, where discussions with clients and colleagues constantly turn to the exciting possibilities of further technology advances, it is clear the appetite and enthusiasm is truly global. 

I firmly believe that artificial intelligence will play a prominent part in making future real estate even more people-centric, providing inspirational spaces for communities and organizations to thrive, as well as helping to deliver on sustainability and efficiency targets.  AI is already reinvigorating the possibilities of real estate and in the coming years we will see that beneficial relationship flower and flourish.