Real Estate Industry Embracing AI Tools for Business

The real estate industry is exploring the potential of artificial intelligence to streamline operations and improve decision-making. While AI has its limitations, experts believe it can create efficiencies and save time in a sector where human relationships and local market knowledge are crucial.

A recent panel discussion at Babson College highlighted the challenges and opportunities presented by AI in commercial real estate. The event was convened by the Boston Affinity Group for its third annual State of the Commercial Real Estate Market, which drew about 100 industry professionals from Greater Boston.

The new TARCO Institute for Real Estate and Entrepreneurship at Babson College is a key player in this conversation. Launched last September, the institute aims to bring together industry, alumni, students, and friends of the college to advance real estate entrepreneurship.

According to Erin Degnan Escobedo, associate professor of practice and faculty director of the TARCO Institute, AI is a constant theme in her experiential learning courses. She emphasizes that the advantage will go to those who use AI to deepen trust in their professional roles and relationships with constituents.

The panel discussion touched on several issues related to commercial real estate, but moderator Leah Harsfield sparked a lively conversation about AI. Jon Martin, CEO of AEW Capital Management, noted that while AI tools can create efficiencies, individual decisions and relationships will always be essential in the industry.

Phil Dorman, co-founder of Greatland Realty Partners, shared his company's experience with AI. They are using it to help revamp their accounting and monthly reporting systems, which currently require 1,000 person-hours a month just preparing data and creating reports for eight investments and five limited partners.

Dillon agreed that there will always be a need for human involvement in the process. 'There's always going to need to be a human,' she said. 'I don't think it takes jobs away.' Instead, AI can help make some jobs more efficient by freeing up time for more strategic tasks.