One of the biggest buzzwords in commercial real estate is technology, specifically artificial intelligence (AI). Many articles on this topic tout AI as a game-changer, using words like “transformational,” “disruption,” and “strategic.” However, according to a recent article from CBRE , AI cannot reach its full potential without a strong foundation of quality data. In other words, no matter how advanced an AI system may be, it will not be useful for predictive modeling or decision-making if it is fed poor-quality data.
The article emphasizes the importance of meeting certain standards when gathering and utilizing data. These include accuracy – incorrect data will lead to inaccurate results; representativeness – the data should be up-to-date and relevant to the problem at hand; and effective management practices such as storage, cleaning, normalization,and integration.
In addition to these key factors related directly to managing high-quality data,the article also highlights three other crucial elements for successful implementation of AI:
1) Infrastructure: This refers to having powerful hardware combined with scalable cloud solutions in place. While this may require an upfront investment,it allows for efficient training and deployment of AI models with proper support for handling large amounts ofdata.
2) Integration: For optimal results,AI must seamlessly integrate into existing systems within an organization rather than disrupt them.This involves leveraging various sourcesofdataand incorporatingAIinto daily operations effectively both froma technological standpointandfromahuman perspective.
3) Flexibility: As technology evolves rapidly,AI must have adaptable foundations that can scale accordinglyto meet changing business needs over time.This includes being ableto adjust quicklyas new opportunities arise or challenges emergeinthe market landscape.Thearticlealso notes that people processes,and prompting(the interaction between usersandAItools),are important considerationswhen implementingthis technology.Furthermore,a one-size-fits-all approachisnot recommended.Instead,strategies shouldbe supported by clear communication formalized processes,and human validation.
In conclusion,while AI has the potential to revolutionize commercial real estate,it all starts with quality data. Without a strong foundation of accurate and representative information, AI cannot reach its full potential. By also considering infrastructure,integration,and flexibility in implementing this technology,the industry can harness the power ofAIto improve processes and drive success in an ever-evolving market landscape.
