Unlocking the Mystery: Why Only 5% of CRE Companies Have Achieved Their AI Goals and How You Can Succeed

The commercial real estate (CRE) sector is waking up to artificial intelligence (AI). Traditionally slow to adopt new technologies, many firms are now embracing AI in significant ways. A recent survey by JLL revealed that over 1,500 senior decision-makers in the CRE industry are not just experimenting with AI—they’re making it a core part of their operations.

In fact, a staggering 88% of investors, owners, and landlords have started piloting AI projects. This is quite a jump from just 5% only two years ago. Most organizations are exploring around five different use cases at once. However, translating these experiments into specific goals remains challenging. Only 5% of respondents said they met all their objectives, while nearly half reported hitting two to three goals.

Yao Morin, CTO of JLL, noted that while it’s impressive to see such high adoption rates, the reality is that many companies are still figuring out how to effectively implement AI. “The goal line has moved,” she said. Initially, firms wanted AI for simple efficiencies, but now they’re tying it to revenue and growth targets. This shift requires a fundamental rethink of how they operate.

As companies aim higher, they’re using AI to refine investment risk models and make more informed portfolio decisions. This is no small task—it means reworking their entire operating model. Morin emphasized that it’s not sufficient to simply reduce costs; firms must rethink their strategies to truly leverage AI’s potential.

Interestingly, despite economic challenges, over half of the surveyed investors reported budget increases due to their AI initiatives. The top spending categories were on strategic advisory services relating to AI, followed by investments in cybersecurity and infrastructure for AI implementation.

For a deeper understanding of how this trend aligns with historical technology adoption in real estate, consider the initial hesitance toward digital tools in the 1990s. Just as those first forays into online listings changed the landscape, AI promises to drive a new wave of transformation.

In a recent social media trend, industry leaders have been sharing successes tied to AI, further encouraging its integration. Using platforms like LinkedIn, professionals are exchanging insights about how AI is reshaping their investment strategies.

As we look ahead, it’s clear that AI is more than a buzzword in commercial real estate—it’s becoming essential for competitive advantage. For more insights and industry trends, you can check out JLL’s comprehensive reports here.

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