# Artificial Intelligence—More Than Just Data Gathering in Commercial Real Estate
Much has been discussed regarding artificial intelligence (AI) and its impact on commercial real estate. From portfolio analysis to documentation and automation of repetitive tasks, AI is revolutionizing the industry. However, Jules Barker, associate partner with McKinsey & Co., highlighted that AI is more than just data collection in a recent conversation with McKinsey Executive Editor Katy McLaughlin.
## The First Steps
For AI users, the initial focus should be on understanding the foundational steps. “They need to step back and ask, ‘What are we struggling with? What’s our competitive advantage, or what should it be?’” Barker explained. This reflection should then be followed by an assessment of process and talent challenges. “They need to think through what data and system they need and who can help deliver it,” he added.
When asked how real estate companies can determine their key challenges, Barker suggested that teams analyze their needs and opportunities that AI can capture. “Senior leadership can prioritize projects based on estimates of how long each one will take, the ease of implementation, and the potential for impact,” he said.
## Then and Now
Barker pointed out that the type of data buildings collect today was not available five years ago. Previously, real estate professionals had limited access to office environment data. “It was pretty expensive to do anything more than count the number of people swiping into the office every day,” he said. Now, however, data on space utilization is readily available through footfall counters, passive infrared sensors, Bluetooth beacons, and Wi-Fi systems.
Furthermore, all this data can now be consolidated in one place. “Granular data can be layered with, say, historical property performance data and local and regional demographic data to create a comprehensive view,” Barker explained.
He provided several examples:
– **An investor assessing a building’s sustainability requirements:** “They can bid on it faster, or bid more for it, and capture an advantage by doing so,” Barker noted.
– **A mall operator analyzing demographics and foot traffic:** “The operator can more accurately target the best possible tenant for a particular retail outlet,” he added.
## Additional Takeaways
According to Barker, companies leveraging AI can identify quick wins and high-priority transformative use cases. This approach leads to “no-regret actions that rapidly yield results,” which can also help overcome stakeholder resistance to change.
Moreover, AI implementation must be an ongoing effort. “Any tech build requires continual design and scoping choices that cumulatively shape the end project,” Barker emphasized.
AI in commercial real estate is far more than just a tool for gathering data—it is a strategic enabler that can redefine decision-making, improve efficiency, and create competitive advantages for industry professionals.
About the Publisher:
Steve Griffin is based in sunny Palm Harbor, Florida. He’s an accountant by profession and the owner of GRIFFIN Tax (www.griffintax.com) and REVVED Up Accounting (www.revvedupaccounting.com). In addition, Steve founded Madison Avenue Technology (www.madisonave.tech). With a strong passion for commercial real estate, he’s also dedicated to keeping you up to date with the latest industry news.
