The commercial real estate industry is getting bombarded with new tech platforms that use machine learning, predictive analytics and artificial intelligence. The supply of new software claiming to use AI to underwrite real estate transactions appears to be never-ending. With all of the headlines, you might say to yourself, “Wait a second. I underwrite real estate transactions — are these robots going to take my job?”
It’s important to first understand what the technological advances are, and then examine how they can be used in commercial real estate. AI enables computers to replicate or mimic human behavior, and it’s used to automate tedious processes like data collection. Machine learning utilizes statistics to enable machines so that algorithms and other software can improve experiences or outputs, and it’s used to analyze the data that’s been collected. Predictive analytics are used to make predictions about future events, and they can be used for projections on rent and expenses.
Consider the following questions to determine which of your own workflows can be executed by new real estate technologies.
1. Do you spend more time looking for data or leveraging relationships to get data?
Any task that involves downloading or copying and pasting data from a website can be automated. It’s only a matter of time before nearly all repetitive tasks will be automated. Machines are much faster and more accurate than we are at these kinds of tedious activities. If the bulk of your work consists of acquiring and organizing data, AI will eventually replace those elements of your work.
Relationships with brokers, managers,…