The meteoric growth of AI and Cloud Computing is great news for the commercial real estate sector and the economy in general.
Companies will invest around $ 6.7 trillion in capital expenditure on Datacenter infrastructure worldwide by 2030, According to McKinseyAnd $ 3 trillion or so goes to real estate and infrastructure. AI and Cloud Computing companies also help to stimulate office markets.
At the same time, however, the AI Frenzy can make us feel a bit unbound and a bit behind the game in our own work, especially when, according to professor at the Harvard Business School Karim LakhaniAI lowers the costs of expertise.
Lakhani is also the same professor credited for the new Mantra of Coining Business: “AI will not replace peopleBut people with AI will replace people without AI. ‘
Like this content? Subscribe to the CPE Capital Markets newsletter
And everyone who has used an AI-driven tool to streamline analysis, marketing, research or communication, know that AI helps you to work faster and more efficiently, sometimes in amazing ways.
Despite the AI rifle, however, there are a few things to keep the mind that should help you feel more well -founded.
AI implementation is gradual
AI does not move as quickly as the demand for data center will make us believe. It will gradually roll out, so that astute investors have the time to find out how it can best be used to their advantage.
On Nareit’s Reitweek Investor Conference in June, Andrew Power, CEO of Digital Realty, said that the actual use cases for AI are still quite low, because many of the solutions are still being built. “We are building infrastructure for the infrastructure,” said Power.
AI cannot replace innovation
AI is essentially derived: it feeds fast quantities of existing data. It cannot come up with completely original ideas, although some would claim the opposite. But it can accelerate innovation, allowing companies to come up with solutions faster and play the competition.
AI will not beat intuition
AI can improve what managers of commercial real estate know, but it cannot replace that gut feeling that comes from experience – the good and the bad ones. However, it can offer the data analysis that is necessary to make instinct in divisible insights. Intuition can also help you detect AI -Hallucinations that experts say they get worse as the use of AI grows.
AI will never be a local expert
Local market knowledge and connections will remain critical. AI can quickly analyze data and maps, but it cannot offer the context and nuances that can bring awareness and lifespan. However, it can facilitate networks by locating potential customers and adjusting solutions. And although AI has the potential to commodate or democratize real estate information, there will be a greater value for Insider information that is shared between people. It can also not form relationships.
AI will not change the essence of healthy commercial real estate, but it has the potential to make it a more efficient process and free managers of everyday tasks, so that they have more time to innovate, make deal and network.
#Capital #ideas #replace #CRE