In an introduction like this, the parties will have to be told: “AI, this is CRE. Its full name is Commercial Real Estate. I’ll explain what it means in a moment”. “CRE, this is AI. This means Artificial Intelligence, but it’s not at all like what you may have heard about it”.
Both parties are made for each other, but they just don’t know it yet. The real estate industry was historically slow to accept and adopt new technologies, and AI is no exception. Both parties will benefit from cooperation, but they have to be properly introduced and explained where the mutual benefits are.
While consulting firms like McKinsey predict that generative AI alone could build up 10 $180 billion of value for the real estate industry, many real estate organizations are finding it difficult to implement workable use cases for AI, and have not seen the promised value creation – yet.
The reason is not in any inherent deficiencies of AI, nor is it in an inherent conservatism of real estate professionals. It is, primarily, in the fact that the two industries, and their specialists, speak two different languages and it’s hard for them to understand each other’s needs and offerings sufficiently well.
At Ticon, we exist at the intersection of many sciences and industries. AI and ML (Machine Learning) and Real Estate are two of them, and this experience makes us well suited for holding the introductions between the parties of this story.
Ticon used machine learning algorithms in our projection models, real estate location analysis, and real estate site selection for years, way before anyone heard of Chat GPT. We worked with commercial real estate professionals, in a variety of verticals, equally long. As a matter of fact, our first customers were real estate directors of convenience store chains. We know the languages of both sides, and serve as an interpreter and mediator, helping both parties benefit from this cooperation.
Through these years, we have seen real estate companies achieve substantial gains in net operating income through more efficient operating models, stronger customer experience, tenant retention, new revenue streams, and smarter asset selection.
When you are ready to learn how to painlessly apply the benefits of AI to your real estate business, give us a call.
