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Although over a third of property professionals believe that AI will have a huge impact on the real estate sector, few have started to implement it
February 27, 2024 | Staff Reporter | Australia | PropTech
AI is yet to make a mark on the Australian property market as a latest report has revealed that few property professionals have truly started to implement it. According to the latest Yardi/Property Council Digital Transformation Report, 35% of the 341 property professionals surveyed, said Artificial Intelligence (AI) would usher in a huge change in real estate. However, the research also revealed that despite more than one-third of property professionals believing that AI will have a “revolutionary impact” on the sector, few have truly started to implement it.
Property Council of Australia Chief Executive Mike Zorbas said 2023 was a breakthrough year for AI and the property market of Australia was looking for ways to implement such systems. “The AI genie is out of the bottle,” Zorbas said. “AI will transform the property sector for the better. With the disruption caused by automation, artificial intelligence, smart building systems and intelligent devices at every stage of the real estate value chain, business as usual is shifting,” he added.
“While strategy is needed to boost productivity through chatbots and copilots, leading organisations across the real estate industry are now seeking to harness AI’s capabilities to streamline processes and offer better services.”
Mike Zorbas, Chief Executive, Property Council of Australia
Mirvac Chief Digital Officer William Payne commented in the research that this was unsustainable. “Investment in technology across the real estate industry has been mainly focused on foundational systems such as financial, ERP and CRM, which many other industries adopted 20 years ago,” he said.
“Much of the day-to-day activity is based on business processes that have not changed for years, with lengthy documents still handed from one person to another. This is unsustainable in today’s world, let alone in an AI-enabled tomorrow. Digital-led customer experience and business optimisation must become a key agenda for our industry as it already is in so many others.”
Yardi’s companion survey of Asian property professionals revealed significant anticipation for AI’s impact. In Mainland China, 56% foresee ground-breaking changes while in India, 67% anticipate dramatic shifts. Yardi Senior Regional Director of Asia-Pacific, Bernie Devine, said despite three years of disruption and pandemic-driven acceleration in property’s digital transformation, 62% of respondents still see the property industry lagging in technology adoption. “This number has risen 12% since our 2022 survey, showing that the industry is feeling that the property sector is missing out on the current boom in technology,” Devine said.
“Only 9% of respondents feel our region is leading the way, in stark contrast to our neighbours in Asia. However, we are clearly seeing the swift advancement and implementation of AI and tech solutions prompting companies to reassess their technology strategies to keep up with the pack.”
“While there is no question real estate companies must proceed with caution when it comes to AI, most respondents to our survey acknowledged AI as a game-changer and are looking at ways to implement these systems into their business. AI chatbots are simplifying lease negotiations, rent collection and maintenance scheduling. These are merely a glimpse of what lies ahead,” he said.
In contrast to the 62% who thought real estate lagged other sectors in technology, 31% thought it was on par with others and seven% felt it was leading the way. The real estate industry is prioritising organisational improvements, with 45% aiming to streamline business processes and 30% focusing on enhancing data timeliness and accuracy as their top information management priorities for 2024.
