Real Estate Firms Invest Over $1B in AI to Unlock $180B Value, But Industry Faces Adoption Challenges
• Compass has invested over $1 billion in AI tools like Likely to Sell and Compass AI to help agents contact leads, write listings, and close deals more efficiently.
• There's an estimated $180 billion in value to be unlocked from advances in generative AI across real estate. But the industry faces challenges in data organization, tech-averse workers, and the physical nature of construction.
• Companies like JLL, Higharc, and Prologis Ventures are using AI for tasks like building maintenance predictions, homebuilding automation, and warehouse site feasibility.
• AI can provide insights from vast amounts of unstructured lease, contract, and other real estate data that would be impossible for humans to analyze.
• AI tools allow for rapid iteration of renderings and designs to experiment and answer questions early, reducing costly changes later.