Real Estate’s AI Crossroads: Lead or Be Left Behind

Comment by Taya Lau, Strategic Account Manager for Commercial Property, MRI Software.

MRI Software’s recent Tech, Data and AI Forum highlighted the transformative impact of AI, data, and client-centricity in real estate. Industry leaders convened to examine how these forces are redefining decision-making, workforce dynamics, and tenant experiences. One message was clear: AI is no longer a distant prospect—it is a present necessity and a strategic imperative for companies to stay competitive.

Reframing AI: From Fear to Opportunity

During a panel discussion, a prevalent concern was addressed —the fear that AI will eliminate jobs – and challenged: “Disruption is not destruction—it’s redefinition.” If your professional identity is tied solely to routine tasks, like being an “Excel warrior,” then yes, automation poses a risk. However, for those who embrace change, AI presents an opportunity to enhance efficiencies and elevate roles.

The real question isn’t whether AI will replace jobs, but how it will redefine them. As Antony Slumbers noted, AI’s rapid evolution is outpacing expectations, and Fei-Fei Li’s call to shift the focus from if to how AI is used is more relevant than ever. AI isn’t about replacement—it’s about augmentation.

Turning Data into Decisions: The Foundation of AI in Real Estate

AI’s potential in real estate is undeniable, yet its success depends on a crucial, often-overlooked element: data. As David Stringer pointed out, 80% of businesses lack a formal data strategy—an alarming statistic given AI’s reliance on quality data. Emma Berry emphasised the challenge of maintaining accurate lease and rental data, while Iga Dabrowa underscored the need for industry-wide data sharing to drive real transformation. The impact of AI, when paired with robust data strategies, is already visible. MRI Software achieved a 47% reduction in per-person energy consumption and saved £20,000 by leveraging AI-driven energy allocation. This success story highlights a critical lesson: AI is only as powerful as the data that fuels it. Without a solid data foundation or strategy, AI remains an untapped potential rather than a business advantage.

The Workforce Transformation Debate: Evolving Roles, Not Replacing Jobs

Building on the data discussion, the conversation naturally shifted to workforce transformation. The concern that AI will replace jobs is understandable, but the reality is more nuanced. AI isn’t eliminating roles—it’s elevating them. Sammy Pahal noted that Property managers, for example, are evolving into data analysts and strategists as AI automates routine administrative tasks.

However, this shift isn’t automatic; it demands upskilling. Slumbers reiterated that the future of AI-powered real estate will be shaped by human-centric skills—problem-solving, analytical thinking, and adaptability. Chris Dunne’s “think big, start small” approach reinforces the importance of integrating AI pragmatically rather than through disruptive overhauls.

AI, Data, and the Changing Tenant Experience

Beyond workforce dynamics, AI is fundamentally transforming tenant relationships. As Antony Slumbers observed, “Offices are now optional, not essential,” forcing landlords to rethink how they attract and retain tenants. AI-driven platforms, predictive analytics, and digital twins are becoming essential tools for enhancing occupancy and asset performance.

However, these innovations must operate within a challenging economic environment. Melanie Leech highlighted ongoing pressures, including high but stabilised construction costs and reset market valuations. Investor confidence has wavered, making strategic AI adoption even more critical. The real estate sector must use data and technology to demonstrate value, rebuild trust, and future-proof assets.

Bridging the Gap: The Future of AI in Real Estate

Despite AI’s clear advantages, real estate remains slow to adopt at scale. As Melanie Leech noted, the technology is available, but data readiness remains a significant hurdle. Emma Berry identified a major bottleneck: the lack of ownership in data cleansing, a fundamental requirement for AI deployment.

The key takeaway from the event was clear: AI, automation, and data analytics are not optional—they are imperatives. To fully unlock AI’s potential, businesses must take decisive action:

• Establish a comprehensive data strategy: AI’s effectiveness is only as strong as the quality of its data.
• Invest in upskilling initiatives: Equip professionals with data literacy and critical thinking skills to harness AI-driven insights.
• Adopt a phased implementation approach: AI should enhance human decision-making and operational efficiency, not aim for immediate, wholesale transformation.

As AI advances and the real estate sector reaches a pivotal moment, the companies that take proactive steps—building robust data infrastructures, fostering a culture of adaptability, and integrating AI strategically—will emerge as leaders. Redefinition is not just a concept; it’s a call to action. The choice is simple: adapt and lead or hesitate and fall behind.

Panellists and speakers from the event included:

• Moderator: Liz Hamson – BE News
• Taya Lau – MRI Software
• Emma Berry – Avison Young
• Iga Dabrowa – Lloyds Living
• David Stringer – Bidwells
• Andew Knight – RICS
• Chris Dunne – Fitzwilliam Dunne
• Melanie Leech – British Property Federation
• Sammy Pahal – UKPA
• Antony Slumbers