Current discussions beyond vendor hype about artificial intelligence in commercial real estate (as well as other industries) are frequently a collection of questions and concerns. For example:
- The Securities and Exchange Commission has said that AI washing — claims of AI capabilities that don’t exist — is an existing problem.
- States are gearing up to make AI regulation more complicated and confusing.
- Generative AI is getting bigger, faster, and worse, according to a research paper in the journal, Nature.
- An Apple research paper argued that large language models (LLMs) don’t mathematically reason, which is a problem when souped-up software is supposed to help perform complex analyses of deals.
But while such topics and others are important to the industry, they are also critical to many types of CRE tenants. Without the right support such as sufficient power, robust Internet access, physical design, and even digital security, some businesses will pass over such a facility.
Healthcare is a major example. In addressing the 2025 U.S. healthcare CRE outlook, CBRE pointed to AI as a critical factor “to address changes posed by strained resources and scarce labor.” The firm mentioned one application that transcribes patient-provider conversations and puts them into clinical documentation fields. Such technology could help reduce tight labor markets.
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