AI, Cities & the Real Estate Industry

The Future is Not What it Used to Be!

AI is one of the most transformative technologies in the last century. We are only beginning to understand it's ultimate impact on the built environment and the real estate industry.

I was honored to participate in a thought-provoking panel moderated by António Gil Machado (FRICS) at the recent Iberian Property / EPRA (European Public Real Estate Association) conference in Madrid. The session explored the main challenges and opportunities that we are likely to see in the coming years as well as how will AI impact RE business strategies and asset values.

Our panel followed a fantastic presentation by Matthew Candy, Global Managing Partner, Generative AI, IBM. He underscored the potential of AI to deliver extraordinary productivity gains and value to the real estate industry.

My fellow panelists, Valentina Shegoyan, Founding Partner of OPREIM and @Alvaro Ontañón, Head of IT, MERLIN Properties shared their reactions to Matt's presentation and thoughts on the potential of AI. In my reply, I asked the audience with their thoughts were on the opportunities and challenges presented by AI. Their overwhelming response was optimistic that it would be a net positive for the industry and their companies.

While not wanting to spoil the party, I offered a cautiously contrarian view. There is undoubtedly a huge opportunity for AI to supercharge productivity. The as yet “unknown unknown” is the flip side of this benefit. More productive people usually means the need for fewer people. Witness what the industrial revolution did to demand for farmers! Some estimates forecast the a loss of 300 million+ white color jobs over the next 5 years due to AI. That potentially equates to significantly less demand for office space.

As we embrace the vast productivity benefits of AI we need to prepare for potential impacts on the built environment. I welcome your comments and join an ongoing conversation on this important topic in the urbanOvation community!