REAL ESTATE NEWS

A striking observation was made at the RETCON 2025 conference: approximately 99% of all species that have ever lived are now extinct, primarily because they failed to adapt quickly enough to changing environments. This theme of adaptation was echoed in discussions about AI's rapid transformation of the real estate landscape. As AI transitions from experimentation to scaling, adapting to these changes becomes crucial for survival and growth in the industry.

Lance French, Chief Information Officer at RealPage, highlighted the transformative power of AI in real estate during a morning presentation. He noted that autonomous systems not only enhance property values with precision but also elevate tenant experiences by anticipating needs and proactively resolving issues. French emphasized that scaling AI requires a different mindset, focusing on securely extracting value, protecting privacy, and being well-governed, given AI's rapid evolution. "Scaling AI requires a different mindset. It’s about how you can extract value in your business, in a way that works, is secure, protects privacy, and is well-governed, because the world of AI is changing rapidly," he explained. French also pointed out that AI is growing faster than any preceding technology and is predicted to become a $180 billion annual industry in real estate alone.

French underscored the significant progress from the early days of AI experimentation to the current discussions around agentic AI and its potential impact on the industry. He warned that companies failing to plan for, invest in, and adopt AI will likely be left behind. "One thing is clear: as real estate leaders, we must recognize that companies that don’t plan for, invest in, and adopt AI will likely be left behind," he stated.

French highlighted three key components of AI in real estate: decision support, automation, and agents. Decision support enhances decision-making by quickly processing large amounts of data, enabling businesses to seize opportunities and address risks effectively. "AI has transformed decision-making by enabling better, faster processing of large amounts of data, empowering businesses to act quickly on opportunities, address risks, and respond to proposed outcomes. This makes AI an incredibly powerful tool," he noted. Automation streamlines tasks with minimal human intervention, allowing users to focus on higher-value activities. Agents, or autonomous systems, handle complex tasks and adapt to users and environments, solving intricate problems with advanced reasoning models.

When these components are applied across a real estate portfolio, the cumulative effect can be transformative, French said. However, he cautioned that this technology must be approached cautiously, emphasizing the need for real estate leaders to thoroughly understand this shift. From a data perspective, the quality and quantity of information feeding AI models are crucial, as poor data can lead to suboptimal outcomes without human oversight. "The connection between data across models is also key. Bad data leads to poor outcomes, as current AI models lack the sophistication to identify suboptimal decisions without human oversight," he explained.

On the security front, AI presents significant risks, particularly as it generates new threats. French noted that many companies are already grappling with AI-driven disruptions, and governance lags behind AI's rapid development. He stressed the importance of factoring these considerations into strategic planning, advising companies not to focus solely on immediate use cases but to consider the broader journey of integrating AI into their business. "Many companies are already grappling with AI-driven disruptions. Governance is another area lagging behind AI’s rapid development, and it’s critical to factor this into your strategic planning. Don’t just focus on the immediate use case you’re solving—think about the broader journey of integrating AI into your business," he concluded.

Source: GlobeSt/ALM