Future forward: The evolution of AI and its impact on commercial real estate

The evolution of artificial intelligence (AI) has been rapid and transformative across industries. From basic AI applications to generative chatbots and virtual assistants, we've witnessed a steady progression in capabilities. Now, we stand at the threshold of a new era: agentic AI. This next wave of technology promises to reshape not just the commercial real estate (CRE) industry, but the future of work and enterprise operations across the board. 

AI's journey began with rule-based systems and narrow AI applications. These early forms could perform specific tasks but lacked adaptability. As technology advanced, we saw the rise of more sophisticated AI, including machine learning algorithms that could learn from data and improve over time. JLL’s own technology journey dovetailed with the early maturation of AI, including the launch of JLL Technologies in 2019 and a focused generative AI strategy built around specific real estate solutions via our JLL Falcon platform. 

 The emergence of large language models and generative AI, exemplified by systems like ChatGPT, marked a significant leap forward. At JLL, we saw the opportunities for massive productivity for our people and game-changing solutions for our clients, and built our own proprietary version, JLL GPT, the first generative AI purpose built for the CRE industry. These technologies generate human-like text, answer questions and even create content.  

 We’ve now entered the latest frontier with agentic AI – autonomous software components capable of performing complex tasks with minimal human intervention, making decisions and taking actions based on their programming and available data. 

 Daniel Fenton, Head of Product for JLL’s Falcon AI Platform, explains: "AI agents are sophisticated computer programs that operate independently to handle complex digital tasks. They automate time-consuming processes, giving people time for higher-value activities that require human insight and creativity.” 

 Fenton adds that companies that have invested in AI as part of their business strategy have been able to accelerate their development and adoption of generative AI, positioning them to realize competitive advantages across their organizations,  

 This acceleration is happening quickly. Recent advancements in natural language processing have significantly improved AI agents' capabilities, allowing them to plan, collaborate, complete tasks, and self-improve. With each passing day, they are transitioning from knowledge-based tools to more action-based applications, with major tech companies investing in agentic functionality in several forms, from individual augmentation ("copilot") agents to full-blown AI virtual workers. 

Agentic AI is poised to transform how businesses operate, make decisions and interact with their environments. For companies working across sectors, this technology offers the promise of increased efficiency, enhanced decision-making capabilities and new avenues for innovation. 

 In the workplace, agentic AI will fundamentally alter job roles and workflows. Routine tasks could be automated, freeing up human workers to focus on more strategic, creative and interpersonal aspects of their jobs. This shift could lead to a reimagining of organizational structures and the very nature of work itself.  Business and pricing models will change, and leaders will need to reimagine everything from the design of their organizations to the design of their workspaces to accommodate these new ways of working.   

 This evolution isn't just about technology; it's about reimagining what's possible. The integration of AI assistants and agentic AI is creating a new paradigm, effectively establishing a "digital workforce" that has the potential to augment human capabilities.  

While the impact of AI and agentic AI is being felt across industries, it has particular significance for the CRE sector. The ability to process vast amounts of data in real-time could revolutionize how properties are valued, managed and optimized.  

 “Buildings have so many complex data points coming in,” says Neil Murray, CEO of JLL’s Real Estate Management Services. “There’s portfolio data, use data, energy data, operational and work order management data, capital spending, and more. The companies that figure out how to harness this wealth of information will be at a distinct advantage.” 

 AI-powered tools offer deeper, faster research capabilities and enhanced scenario modeling across these data points. With the right AI systems in place, this could lead to more informed decision-making and, ultimately, autonomous actions across all aspects of CRE operations, from investment strategies to property management. 

 "Imagine a world where brokers, property managers and account teams can dedicate more time to client relationships and strategic planning, while AI handles the time-consuming processes of data analysis, market research, report generation and basic property or facilities tasks," says Carlin Power, Head of AI Product Engagement for JLL. "This isn't just increasing efficiency; it's revolutionizing the quality of service we provide to clients." 

 JLL's Global CEO Christian Ulbrich paints a vivid picture of this transformation: “Through our suite of AI tools and agents we can provide our clients with deep analysis and intelligent insights on their property portfolios. A complex process which used to take multiple weeks can now be delivered in real-time, allowing our people to deliver enhanced client experiences and better outcomes.”

 This leap in analytical capabilities isn't just about speed—it's about depth and breadth. AI can quickly analyze market trends, property values and demographic data to provide comprehensive insights for investment decisions. It can make educated predictions about future trends, helping investors and property managers anticipate market shifts.  

Perhaps most importantly, it can assess the possible downsides of investment choices, rental agreements or decisions about managing properties. This ability helps create better plans to reduce risks. In the near future, it may even be able to put these plans into action automatically. 

As the industry embraces these transformative technologies, it's crucial to address ethical considerations and ensure responsible AI development. This includes maintaining data quality and accuracy, addressing potential biases and ensuring transparency in AI decision-making processes.  

According to JLL’s most recent Future of Work survey of corporate leaders, more than 50% said that data quality was a major barrier to widespread AI adoption for commercial real estate functions. As Srihari Kumar, SVP, Chief Product Officer, JLL, notes: “You cannot have an AI strategy without a data strategy.” 

Our Chief Technology Officer, Yao Morin, emphasizes this point, referencing JLL’s own efforts to prepare and secure its data and upskill its employees: "We focus on creating an intelligent, secure, and adaptive data infrastructure that fosters a culture of continuous learning and adaptation." 

The fact is, every company that is leading the way with AI and making the most of its business potential does two things: It makes the technology accessible to all employees, allowing them to find ways to unlock efficiency and new ways of thinking; and it treats its own data, and its clients’ data, as highly confidential and invests in the right security to keep it that way. 

The evolution of AI, culminating in agentic systems, represents a paradigm shift for the CRE industry and beyond. By leveraging these technologies to enhance human expertise, improve decision-making and unlock new opportunities, forward-thinking companies can position themselves at the forefront of this transformation. 

Regardless, the future of CRE, like so many other industries, is almost certainly one where AI and human ingenuity work in tandem. The hope is that this pairing creates more efficient, insightful and responsive solutions for clients, employees and stakeholders alike. 

"We're probably the last generation of CEOs that will have just human employees,” says Murray. “We have to think about the notion that we'll have agents and people working together and deciding where those lines are and what's the most appropriate, efficient way for our people to maximize their time by utilizing these new powerful resources.” 

Learn about JLL’s approach to AI and Agentic AI and how it can help you meet your business goals.