A version of this article first appeared in the CNBC Property Play newsletter with Diana Olick. Property Play covers new and evolving opportunities for real estate investors, from individuals to venture capitalists, private equity funds, family offices, institutional investors, and large public companies. Sign up to receive future editions straight to your inbox.
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### Commercial Real Estate Accelerates Adoption of Artificial Intelligence
The commercial real estate (CRE) market has historically been slow to modernize. However, it now appears to be rapidly accelerating its adoption of artificial intelligence (AI). Companies are moving beyond initial testing and exploration into more targeted applications aimed at redefining value, according to a new survey from JLL.
The survey, which included more than 1,500 senior CRE investor and occupier decision-makers across various industries, found that while AI adoption is still in the early stages, organizations are prioritizing AI in their technology budgets. They are shifting focus from using AI solely for efficiency to exploring how it can actively grow their businesses.
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### Key Findings from the JLL Survey
– **AI Pilots on the Rise:** 88% of investors, owners, and landlords reported they have started piloting AI, with most pursuing an average of five use cases simultaneously.
– **Occupiers Leading AI Use:** More than 90% of occupiers are running corporate real estate AI pilots.
– **Rapid Growth Compared to Two Years Ago:** Just 5% of respondents were starting AI pilots two years ago, highlighting a significant surge in adoption.
Despite the fast adoption, challenges remain. Only 5% of respondents said they have achieved all their program goals, while close to half have met two to three goals. Much of the AI work is still experimental and hasn’t yet resulted in substantial growth.
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### Skepticism and Shifting Goals
“If you think about commercial real estate, traditionally, it is not a quick technology adopter and is usually skeptical,” said Yao Morin, Chief Technology Officer at JLL. “So the high number of adoptions is actually quite surprising to me. What is not surprising, on the flip side, is that only 5% actually think they have achieved all their goals. This aligns with what we see in many other industries.”
A key reason companies are not hitting all their goals is that the goal line has moved. Organizations have evolved from seeking operational efficiencies to tying AI initiatives directly to revenue growth and margin expansion.
For example, some companies are using AI to improve investment risk models, guiding investment and portfolio decisions based on AI-generated insights. This shift demands fundamental changes to how companies operate.
“When you really start moving towards the revenue side, the margin expansion side, it requires a lot more than just adopting a technology,” Morin explained. “You can’t just say, ‘Well, I’m saving you 10%’ on a particular task. Companies need to rethink their operating models and organizational structures to actually realize these savings.”
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### Increased Investment Despite Economic Headwinds
Companies are heavily investing in AI even amid economic uncertainties. Over half of the investors surveyed by JLL reported significant budget growth in AI over the past two years.
– **Top Spending Areas:**
– Strategic advisory on technology and AI
– Upgrading cybersecurity and data-security measures
– Enhancing infrastructure for AI integration
Most respondents indicated their budgets increased solely because of AI initiatives.
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### From Simple Tasks to Competitive Advantages
Morin found it surprising that, contrary to expectations, companies are not just starting with simple, low-risk AI applications.
“Our survey showed the opposite,” she said. “We are reaching a level of sophistication beyond the initial skeptical phase. Companies are now focusing on leveraging AI for competitive advantage by tackling pressing business problems instead of just automating simple, low-risk operations.”
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The journey of AI adoption in commercial real estate is still evolving, but one thing is clear: AI is becoming a strategic priority that could fundamentally transform the industry’s future.
https://www.cnbc.com/2025/10/31/cre-companies-ai-goals.html