RE-Gen AI: How technology can transform commercial 

The article explores the growing influence of generative AI in the commercial real estate sector. Despite longstanding use of traditional AI, the emergence of generative AI has expanded possibilities, enabling machines to create original content. Deloitte's 2024 Commercial Real Estate Outlook indicates substantial investment plans, with over 72% of the participating global real estate owners committing to or considering AI solutions.

Report’s Key Findings Include:

1. Venture Capital Investment: Since 2017, there has been considerable levels of venture capital investment, totaling US$7.2 billion. Since the emergence of generative AI in 2021, corporate investment volumes totaled over US$3.5 billion through October of 2023, outpacing the total from 2018 to 2020 by nearly 50%.
2. Areas of Interest: The areas of greatest interest to these real estate investors include AI and ML services for transaction-focused function areas like property listings (42%), investment and valuation (20%), and real estate data analytics (8%).
3. Use Cases: A myriad of potential use cases for real estate companies involving various generative AI modalities are explored. These applications range in maturity, ease of adoption, and scalability within organizations (refer to the article for an in-depth use case review).
4. AI Implementation Strategies: Diverse strategies for AI implementation are discussed, including the use of existing applications, integration of third-party APIs, deployment of open-source models, and the creation of in-house models.
5. Generative AI Talent: Research findings indicate that job postings by real estate firms requiring generative AI skillsets increased by 64% in 2022 and by another 58% through August of 2023. These findings indicate that the sector has adopted a “human-centric approach,” viewing Generative AI as a tool to enhance the human experience rather than outright replacing it.
6. Early Movers in Generative AI: Disciplines at the forefront of adopting generative AI talent include architectural design, construction/project management, legal due diligence, and human resources and talent management.

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