Artificial Intelligence in Real Estate
Artificial Intelligence on the rise
AI-based innovation will lead to 11.3 percent growth in German GDP by 2030. The real estate industry will not be spared out. Software algorithms will increasingly adapt and evolve to more complex areas. These areas include voice recognition and decision making. In the long term, systems could significantly reduce incorrect decisions due to a lack of data. Artificial intelligence is a collective term for smart technologies that consciously perceive their environment and can learn from it to respond autonomously to signals and make decisions. These are computer programs that are able to learn, understand, plan, think and self-correct.
AI can be divided into four functional categories:
- Automated intelligence: Automate manual / cognitive and routine / non-routine tasks.
- Supporting intelligence: helping people to accomplish tasks faster and better.
- Expanding intelligence: helping people to make better decisions.
- Autonomous intelligence: automation of decision-making processes without human intervention.
In the real estate industry the utilization of AI will not only improve the efficiency of operational tasks, but also change decision-making processes.
By recognizing relationships and patterns in large data sets, the effects of possible future scenarios can be examined more closely. Subjective assessments are replaced by actual data and insights, resulting in sound, property-specific decisions. By means of so-called Smart Contracts, relevant information from contracts and documents can be extracted and used meaningfully.
This will increase the transaction speed and reduce the search and sorting effort. Accordingly, algorithms can check virtual data rooms for completeness or, in the case of a sufficiently solid database, identify suitable investment targets according to the portfolio matrix. In asset management, the possible use of artificial intelligence ranges from personalized customer contracts through contract management to intelligent building services management. In addition, property valuation, property management and facility management will increasingly change. Possible applications in these areas include simplified collaboration, peer-to-peer transactions, supply chain management and data management.
Future Impact
The participants in our "Real Estate Asset Manager Benchmarking Study 2018" assume that this technology will not materially affect the future employment, responsibilities and privacy of individuals until the next 2-5 years.
However, due to the numerous applications, the influence of this technology will increase. It is already foreseeable today that AI applications will be interlinked with almost all applications and will be indispensable in everyday life. Above all, the link with other emerging technologies such as the Internet of Things (IoT) is expected to bring enormous value-add, such as the possibility of being able to tailor the planning of the building strategy in a goal-oriented and AI-supported manner thanks to the recording of building use.
Significant obstacles, however, will be data availability, standardization and usage due to inconsistent data models and legal requirements. As a foundation for efficient AI use, therefore, improved data transparency and standardization is important to the real estate industry.
Start-ups
- EVANA
- Skyler 360
EVANA
EVANA creates transparency for your inventory and transaction data rooms. With Artificial Intelligence, EVANA recognizes the nature and content of documents so that a large number of information can be read in a short time. The contents are provided in clear reports and as a highly flexible database. Tenant lists and management data can be extracted directly from the documents.
Skyler 360
Skyler360 software uses Artificial Intelligence (AI) to help brokers to generate leads. It will automatically respond to all inquiries and hold the lead until the deal is completed. In addition, marketing measures and decisions based on the data are customizable.
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