For an industry that’s proven to be behind the curve when it comes to technological advancements, there’s no surprise that artificial intelligence is taking commercial real estate by storm. But for what historically has been seen as an IT problem, all job functions across an organization are now being forced to jump on board, as members heard during NAREIM’s Legal, Compliance & Risk meeting this week in Chicago.
When polled on how far along their firms were on the AI adoption journey, more than half (53%) of attendees noted it was gaining momentum by expanding and scaling use cases. The main tool of choice was CoPilot, followed by Enterprise ChatGPT and Responsive.
“This has to be an iterative process,” shared one member. “You can leverage the AI to create a personality, a do or don’t list, a Q&A bot for policies, and even instruct it to tell you when it doesn’t know something or isn’t clear. But there is never a scenario where you can’t have a human element to its use.”
When asked what areas AI was currently providing the greatest benefits, 64% of attendees said operations, streamling the everyday grind. Following that was investment and asset management at 21%, facilitating deeper research and smarter moves for the firm.
Organization and education are the most crucial elements of the integration process, with managers mentioning the use of BlueFlame, Hebbia, Norm AI and HeyGen as some of the platforms currently being tested out at their firms. Among AI use cases, 42% of attendees were interested in learning more about how it’s being utilized for marketing reviews, followed by contract reviews at 24%, and DDQ or RFI automation at 18%. Across the firm, different departments including compliance, IT, operations and business teams, need to be communicating on how these platforms are being used, the limitations, and the dangers.
“You can’t manage the risk of these tools if your team doesn’t know how to use them property,” said one member. “You should be consistently retesting and reviewing on a regular basis.”
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