Intelligent Use Of Artificial Intelligence Can Benefit Real Estate Businesses – Landlord & Tenant – Leases – United States

Artificial intelligence (AI) is bringing significant change to a
wide variety of industries and commercial real estate (CRE) is no
exception for use of this technology. From marketing to property
management, AI could expedite processes and cut costs in a range of
ways. But what exactly is AI? Here is a quick lesson.

AI 101

The term “AI” generally refers to using computers to
perform complex tasks — like image perception, voice
recognition, decision making and problem-solving — usually
thought to require human intelligence. Several types of
technologies fall under the AI umbrella, including:

1. Machine Learning. Machine learning is an
   iterative process where machines improve their performance in a
   specific task over time with little or no programming or human
   intervention. For example, machine learning can predict a
   home’s closing time based on factors such as season and market
   cycles.




2. Natural Language Processing (NLP). This uses
   algorithms to analyze unstructured human language in documents,
   emails, texts or conversations. Loan officers might use it to
   locate specific information in a document based on the words
   surrounding that information.




3. Robotic Process Automation (RPA). RPA
   automates time-consuming, repetitive manual tasks that do not
   require decision making based on business rules and structured
   inputs. For example, it could streamline property searches.

As you can see, it is easy to comprehend why AI is primed to
revolutionize all kinds of business processes.

AI in the world of CRE

Numerous functions at the core of CRE can benefit from AI,
including:

Marketing

Property owners, leasing agents and brokers can use AI to
aggregate data from across the Internet to develop intelligence on
markets, competitors and potential buyers and sellers. Machine
learning can help identify the optimal media avenues to reach
target audiences. It also can produce better pricing by predicting
demand based on factors such as location and property features.
Chatbots — AI texting or auditory programs — can more
economically handle routine inquiries from potential buyers or
tenants, create profiles and schedule appointments.

Related Read: Using Data Analytics to Gain a Competitive Edge
and Boost Tenant Satisfaction

Deal Matching

AI could improve deal matching in multiple ways. Early on, RPA
can collect and process data to rule out mismatches before much
time or money is wasted. Machine learning can evaluate risk and
make financial projections for properties, warding off would-be
investors from properties that do not satisfy their investment
criteria. It can also analyze past transactions to make predictions
about the likelihood of a sale between specific parties. NLP can
quickly scan documents and identify potential red flags,
eliminating the need for prolonged manual due diligence.

Property Management

AI promises to produce significant savings when it comes to
property management, especially in the area of energy costs. The
spread of the so-called “Internet of Things” —
meaning the networking of people, sensors and objects to
automatically collect, exchange and apply data — is already
paving the way.

Data sensors in building systems allow for real-time adjustments
to temperature, lighting and similar controls. This data can also
drive predictive analytics that inform decisions about the
maintenance and replacement of systems, while robots can check on
and possibly repair structural damage.

Chatbots can play a role in property management, too. For
example, they make it easier to communicate with tenants promptly
and even provide concierge-type services. This may lead to
increased tenant satisfaction and attract new tenants.

Of course, these potential benefits come with additional costs.
Property owners may need to invest in enhanced cybersecurity to
protect data and access to automation systems. Older buildings may
also require some infrastructure updating to take advantage of the
new technologies.

The future is now

Artificial intelligence is no longer just a wild idea in the
minds of science fiction fans. It is reshaping many industries and
is poised to do the same to CRE. Owners, developers, managers and
investors will need to stay abreast of the developments to keep up
with the competition.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.