CRE's AI tango: Lead or get stepped on

Corporate real estate leaders: it’s time to face facts. The AI revolution isn't coming – it's already here, rewriting the rules of business faster than you can say “machine learning.” But here's the million-dollar question: Is your organization leading the dance, or stumbling to catch up?

“If you think the AI revolution is hypothetical or hyperbole – think again,” notes Ram Srinivasan, Managing Director and Global AI Adoption Leader with JLL Consulting Services. “This is an inflection point. A fundamental shift in how we work, innovate and create value. Companies that don't adapt will be obsolete.”

JLL's Future of Work 2024 survey revealed 90% of companies plan to harness AI in commercial real estate within the next five years. If you're not already strategizing your AI moves, you're already behind the curve.

“The future of work isn't about replacing humans with machines,” explains Peter Miscovich, Executive Managing Director and Global Future of Work Leader with JLL Consulting Services. “It's about creating a symbiotic relationship where AI augments human creativity and decision-making. The future of AI + CRE will create new intelligent collaborative workplace ecosystems.”

Here's the kicker: while 87% of executives are desperate for talent that can use AI, only 30% of employees feel they have the skills to keep up. 

“Leaders who view AI as just another IT project are missing the forest for the trees,” says Srinivasan. “This is about reimagining your entire approach to talent, space, business model optimization and value creation.”

AI impacts all areas of the CRE ecosystem, but we’ve identified three key areas in which CRE leaders should prioritize AI augmentation. 

1.Employee Workplace Experience 

Attracting and retaining top talent is the number one priority for leading organizations—and the workplace experience plays a big role here. AI empowers organizations to transform lackluster employee experiences into seamless, friction-free “peak workplace experiences.” Shifting the focus from traditional workplace experience delivery to a more AI-enabled personalized work experience will yield greater employee satisfaction and engagement.

2. Dynamic Workplace Management

Workplace Management has become much more dynamic and a significant opportunity for improving CRE performance and efficacy. AI-driven analytics can pinpoint inefficiencies in overall workplace operations to help better manage CRE with the optimization of leases, energy usage, footprint and daily operations.

3. Corporate Real Estate Transformation

Real estate leaders are under constant pressure to deliver continuous performance improvement to meet ever-changing business and market conditions. AI-enabled decisioning provides real-time actionable insights that offer agile organizations to propel CRE performance toward operational excellence.

“One way to think about this is if your smart watch can provide real time heart rate data and detect anomalies, should you really need to wait several days, weeks or months to get data about your workspaces? Smart convergence of IoT, BIM, IWMS, and other property data can provide these insights today,” says Srinivasan. “One such example is JLL Serve that combines these technologies in an integrated dashboard where you can literally drill down from portfolio level to HVAC fan level to review your portfolio performance and asset health through digital twins.”

But you don’t need to create your own AI tools from scratch. “Why build when you can partner? Why hire high-cost AI talent when you can borrow? This is the smarter approach,” says Srinivasan. “We are already seeing CIOs dump in-house attempts at AI projects in favor of tried and tested commercial AI.” 

On the other hand, many organizations say there are still skeptics among the key stakeholders at their firms. Decision-makers among IT, legal and other C-suite execs are sometimes reluctant to bring in new AI tools. The key is to share use cases and the expected return on investment, as well as assuage any concerns about data privacy. A reputable real estate consultant will partner with industry experts and innovative organizations to spin up a holistic AI strategy that transforms entire CRE ecosystems with the following processes.

Need proof? One global JLL financial services client saved a cool $120 million in operating costs by leveraging AI-powered workplace insights. Another Fortune 100 tech giant partnered with JLL to identify over 100 high-impact AI use cases, resulting in a transformative roadmap for their entire CRE function.

This isn’t just about enhancing energy efficiency or better data storytelling. We're talking: 

o   AI-driven space optimization that adapts in real-time to changing work patterns 

o   Predictive maintenance that eliminates downtime before it happens 

o   Hyper-personalized experiences that make every employee feel like a VIP 

JLL's AI adoption approach ensures AI actually improves your CRE operations and stickiness for top talent. You don’t have to just take our word for it, though. HP’s 2024 Work Relationship Index revealed “68% of knowledge workers… and 76% of business leaders seek a personalized work environment. Employees value tailored work environments so highly that 87% are willing to accept a 14% pay cut to have it. Notably, Gen Z workers will accept a 19% pay cut, emphasizing the importance of flexible and personalized work experiences in retaining top talent.” That's the power of leveraging AI in your workplace strategy.

By 2030, JLL predicts that 70% of CRE activities will be at least partially supported by AI. The question isn't if you'll adopt AI, but how quickly and strategically you'll do it.

Learn more about how we’re helping innovative leaders like you with AI Adoption at work.

Ready to lead the AI revolution instead of fumbling through it? JLL Consulting Services can help you make the right moves. Together, we can transform your CRE function into a value-driving powerhouse that attracts top talent, optimizes every square foot and gives you an unbeatable competitive edge.