The real estate sector stands on the edge of a generative AI revolution – one that could unlock up to US$180 billion annually, according to McKinsey. Yet, many are still stuck in the ‘wait and see’ mindset. What’s holding them back? Yardi’s Bernie Devine puts it bluntly: “When it comes to GenAI, it’s time to shrug off the hesitation and start seeing the money.”
Many real estate companies use analytical artificial intelligence to evaluate trends, assess performance, optimise portfolios, manage risks and much more. But generative AI (GenAI) “helps real estate companies to make the leap from predictive to proactive intelligence,” says Bernie, Yardi’s Senior Regional Director for Asia Pacific.
“GenAI doesn’t just analyse the world; it actively shapes it by redefining how we think about problem-solving and creativity,” Bernie says.
What’s stopping real estate companies from adopting the technology at speed and scale? “The same old roadblocks” – concerns about upfront investment costs, uncertainties about existing system integration, knowledge and skills gaps, employee resistance to change, and demand for specialised expertise among them. “Throw in privacy and security concerns, and many real estate companies are taking a ‘wait and see’ approach.”
But the potential productivity uplifts are too big to ignore. Goldman Sachs suggests widespread adoption of GenAI could boost global gross domestic product by 1.3% annually, through labour productivity benefits that free up human resources for higher-value tasks. In developed markets, a 1.5% growth in GDP is within reach.
Given this potential, the question is clear: What should real estate asset managers prioritise next to leverage the transformative power of GenAI? Yardi’s latest whitepaper, Asset Management in the Generative Age, offers some insights.
“GenAI doesn’t just analyse data. It demands decisions, and this influx of choices can lead to decision overload,” Bernie says. Adopting GenAI quickly, therefore, requires a strategic approach. “Start with clean data and robust foundational systems and processes to enhance transparency and trust. Get the data platform and governance right and the benefits will begin to follow.”
While GenAI is a powerful tool, it’s not the only solution. For GenAI to live up to its potential and generate real business value, it must be firmly rooted in trusted enterprise data.
“Sometimes the most effective solution to a problem lies in process change – streamlining workflows, optimising operational procedures or implementing new management practices.
“At other times, the answer might be to bolster education and training, improve communication channels or revisit strategic goals. Whatever the problem, it is better solved in partnership.”
Download Yardi’s latest whitepaper, Asset Management in the Generative Age.