AI & real estate, the revolution is underway

AI & real estate, the revolution is underway

28 June 2023

Data quality

The use of artificial intelligence (AI) in the real estate industry is often underestimated, but it holds enormous potential for the sector.

AI is constantly evolving, with major breakthroughs occurring regularly. Whereas a few months ago GPT-3 was comparable to the lowest-performing students, a few months later GPT-4 is now in the top 10% of the brightest students. Many companies around the world are working on competing AI models, fueling a stimulating and constant competition.

This revolution takes two forms:

First of all, AI has left the geek sphere to reach the general public. This heightened awareness paves the way for new opportunities and wider adoption of AI in various fields, including real estate.

Secondly, the increased accessibility of AI models lowers the barrier to entry for the creation of new products and solutions. While AI can’t do everything and isn’t specifically designed for real estate, innovative companies like Stonal can now use these models to offer new services. With existing models such as GPT-4, companies can save hundreds of millions of euros in development and research costs. Although the costs of training existing models remain a financial challenge, they are still much more affordable than creating an AI model from scratch.

AI in real estate, what uses ?

Although the use of improved algorithms has been around for years in real estate, it’s only recently that AI has made its entry through models developed mainly by Microsoft and OpenAI. Artificial intelligence is now changing the real estate industry significantly and rapidly, opening up new perspectives and posing new challenges.

AI can now be used for the analysis of data real estate, predicting market trends, personalizing the customer experience, automating processes and much more. A concrete example is the use of AI in the legal field, where reading algorithms are able to understand contracts and detect potentially problematic clauses. Lawyers could thus be assisted by AI systems to avoid errors and wasted time.

AI could also transform the architecture and design sector. Using specialized algorithms, it would be possible to create projects integrating all constraints, environments and even architectural quality criteria.

In asset management, AI will play a key role. Rather than simply projecting asset trends over a 10-year period, algorithms could be able to predict data such as rents, occupancy rates and tenant preferences, taking into account factors such as work carried out on buildings.

The challenge of data quality to power AI

What impact on the real estate industry?

The rapid adoption of AI in real estate requires particular attention to the quality of the data it learns from. Robin Rivaton, Managing Director of Stonal, points out that the real estate industry often has poor-quality data, mainly in the form of unstructured text. To fully exploit the potential of AI, it is already crucial to extract, clean and format this data to make it usable for machine learning models.

Sébastien Chemouny, head of france, PIMCO PRIME Real Estate, talks about four types of data: financial data, building-generated data, documentary data and Open Data. 

  • Financial data is processed daily by management systems, while data generated by the buildings, such as temperature, ventilation and air quality, is collected by sensors. 
  • Documentary data, often overlooked, contains a wealth of valuable information for decision-making. 
  • Finally, open-access data, such as outdoor temperature, must be correlated with other types of data to obtain an overall picture. 

It is becoming strategic to make the most of this data to optimize building performance and implement sustainable practices

To make the most of data, Sébastien Chemouny talks about his experience with Delta Q, a company using AI to take into account data generated by sensors and open-access data to optimally control technical equipment in buildings. This means, for example, that heating can be controlled according to the presence of occupants, optimizing energy consumption. Here, AI enables you to make informed decisions based on real-time data analysis.

AI and the automation of low-value-added tasks will create new opportunities and enable professionals to focus on more strategic tasks. So AI is not eliminating jobs, but increasing efficiency and attracting talent to the real estate sector.

Algorithms can replace specific tasks, such as the reading of leases by lawyers, which addresses both economic issues and the difficulty of finding qualified professionals.

AI won’t completely replace real estate professionals. Rather, it is a powerful tool that can complement and enhance their expertise. Strategic decisions and human relations remain essential in the real estate industryAI can help reinforce these aspects by providing valuable information and in-depth analysis.

What role does Stonal play in real estate performance and data quality?

The amount of data available in the real estate sector is often under-exploited. Reports and diagnostics contain a wealth of information, but due to a lack of human resources to extract the relevant data, they are often overlooked.

To remedy this, Pimco Real Estate decided to collaborate with Stonal for document processing, in order to extract the necessary information efficiently.
Stonal aims to make documents intelligent by classifying, renaming and extracting relevant data.

This enhances the value of the information contained in the documents, making it easily accessible for decision-making. For example, Stonal can extract critical information from a report, or verify a building’s compliance with regulations by analyzing the relevant documents. Thanks to these advances, Stonal contributes to better management and exploitation of documentary data.

The management, quality and exploitation of data are of growing importance in our sector, to optimize building performance, improve decision-making and promote sustainable development. By fully exploiting these resources, the real estate sector can reach new heights of efficiency, sustainability and profitability. The integration of artificial intelligence and the use of massive data are revolutionizing the real estate sector. AI algorithms make it possible to fully exploit available data, optimize processes and make more informed decisions. Companies specializing in AI applied to documents, such as Stonal, are breaking new ground by transforming documents into actionable sources of information. Find out more

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