AI and technology
AI equals ROI
Generative artificial intelligence (gen AI) is being explored across all industries, and we are only beginning to see the cost saving and efficiencies it can bring to organisations. Our survey found that around one in five have already made investments, and a further 39% plan to in 2024. Significantly, of those who had invested or planned to, 83% believed it would bring significant returns. While the real estate and construction industry was late to the AI party, the learning curve may not be as steep and costly as it has been for other market sectors, as the sector benefits from the learnings of others.
Has your organisation invested any money in generative AI?
Yes
No, but it plans to in 2024
No and it is not planning to in 2024
Don't know
On the cusp of a data revolution
The role of data is vital, businesses which can harness all data available will be able to generate insights and adapt in ways which others cannot. While 44% of our respondents stated existing data capture systems in their organisation as adequate for the use of AI, we found these results to be higher than expected. Mapping out all available data and what you can glean from it is the first step. Most organisations will be solely focused on operational data, without yet thinking about what other data they can capture and analyse, which will be crucial in driving efficiencies and improvement. For example, how consumers are using certain spaces within a building can help with future uses of that space and the energy decisions that can be made for it. It’s important for businesses to put procedures and governance around their data strategies.
Kelly Boorman
Head of construction, RSM
'We expect a ‘digital revolution’ in the industry over coming years in all areas of the built environment, with initial focus on the design and build stage and project performance reviews. Data offers risk management through understanding the supply chain better, creating efficiencies in project management, along with insight into asset management in real estate.'
How will gen AI be used?
Gen AI’s potential to be embedded across all areas of the sector comes across loud and clear from our survey. We see a split across its use and a fairly even split at that. Business leaders ranking financial information top is unsurprising, it’s an area where the most easily collected data is. But while price modelling ranks second (31%) it could actually have the most impact.
We are yet to see solutions deployed at scale which will bring efficiencies and value. Though our cities and buildings are all inherently different, collaboration and sharing of best practice across the industry and learning from other industries and international markets is key. We do see some territories ahead in incorporating gen AI into planning and design, resulting in efficiencies and better lead and delivery times.
Which areas across the real estate and construction industries do you believe generative AI will be most prominently used?
Financial and management information
Supply chain management
Property operations
Price modelling
Asset management
Project and contract management
Robotics and remote operation to monitor building safety during build and operation will enhance health and safety procedures, increase productivity, and improve inclusivity for employment in the industry.
Within the sector, there is hesitancy over the use of generative AI generally, with over 40% of respondents believing that it will be a threat, with comments citing ‘the unknown’ and ‘lack of control and quality concerns’ as worries.
Views on gen AI as a creator of or threat to jobs and the workforce were split. Broadly, it’s predicted that generative AI will create different jobs and enhance inclusivity where roles can be carried out remotely as opposed to on site.