The future of AI in CRE

JLL’s latest Global Future of Work survey confirms that AI is already being actively implemented in the business world. More than nine in ten C-suite leaders believe AI will change the way the workforce operates over the next five years. A similar proportion plans to accelerate investment in AI over that period.

This means a new hybrid work model (Hybrid 2.0) is imminent, blending manual and automated processes, with AI supporting human experts across business functions. In this emerging work style, CRE is no exception. 

Taking a systematic approach to realize the promise of AI

A well-structured AI strategy for CRE is necessary to prevent companies from falling into the trough of disillusionment. CRE leaders must move beyond the hype and adopt a systematic approach that emphasizes usefulness in realizing AI’s full potential.

JLL suggests a four-stage approach which will allow CRE professionals to cut through the hype and focus on the tangible and practical benefits of AI, to identify meaningful uses of the technology, to build a business case for using AI in the CRE function and to secure strong support from business leaders.

CRE professionals need to consider where their top priorities are, existing work patterns, systems already in place, availability and capabilities of products in the market and of course the cost of implementation and current budget. This process, focused on usefulness, will identify the most meaningful AI use cases from tangible possibilities and prioritize them according to the company’s specific conditions:
 

• Location strategy: market positioning, trend analysis, cost analysis, optimized financing, streamlined site selection
• Portfolio optimization: data standardization and reporting, risk assessment, space forecasting, scenario planning, stress-testing portfolio strategies
• Design, fit-out and construction: fast design iteration, supply chain optimization, cost estimation, dynamic schedule optimization, construction site monitoring
• Lease administration: standardized lease abstraction, automated document management, compliance monitoring, automated auditing
• Sustainability strategy: energy analytics and modeling, dynamic energy sourcing, scenario-based decarbonization roadmap, automated HVAC systems
• Workplace and occupancy: Floorplan digitization, occupancy sensing, space utilization pattern detection, dynamic occupancy planning 
• Operations and maintenance: Predictive maintenance and cleaning, inventory analysis and procurement optimization, automated recordkeeping
• Employee experience: personalized environment control, intuitive room and desk booking with automated calendar updates

In another JLL survey conducted last year—the JLL Global Real Estate Technology Survey—we demonstrated that making decisions about technology adoption by a company’s CRE function is a complex process involving a range of stakeholders. Nearly half of respondents report that IT and innovation decision-makers are involved; one-third also report the involvement of facilities management, 31% sustainability and 30% finance teams.

In this web of stakeholders, C-suite support is a key element to success. The technology survey found that companies are three times more likely to have a successful CRE tech program if business leaders were engaged with it and took part in tracking progress, rather than simply being presented with the results.

In the case of AI, C-suite support is particularly crucial. It helps balance competing budget demands, secure necessary resources and provide approval for the upfront investment required. Moreover, this support ensures organizational patience during the initial experimentation phase, which is essential before the return on investment becomes evident.