From data to AI in the real estate world
The real estate industry is not necessarily an industry that changes quickly. Buildings exist for decades, processes are complex and many decisions are based on experience.
This is precisely why it is worth looking back. Because the way in which real estate is planned, operated and managed has changed fundamentally over the last 30 years.
Thirty years ago, many processes were still surprisingly analog. Data was stored in folders and paper documents, decisions were based heavily on experience and less on systematic analysis. A phase soon began in which the industry developed step by step: processes became more digital, data more important, buildings and companies increasingly networked.
It was in this environment that pom was founded in the mid-1990s as a spin-off from ETH Zurich – with the idea of integrating tasks, data and processes in the construction and real estate sector more closely. Thirty years later, pom is celebrating its anniversary and the basic question is still very topical: How can real estate, organization and technology be meaningfully combined?
In terms of technology, we are now at a new turning point. The digitalization of real estate continues to advance: cloud technologies, IoT and digital models are enabling ever more precise mapping of buildings. The so-called digital twin is increasingly becoming a reality and creating new opportunities for automating processes.
At the same time, the way companies work is changing. Artificial intelligence will change many processes in the coming years – especially where large amounts of information have to be processed and decisions still have to be made manually. Different data can be analyzed more easily, finished results can be generated automatically and decisions can be massively accelerated, even with the involvement of humans. Assistance systems, known as agents, are becoming part of everyday working life.
At the same time, a look at the industry reveals an interesting area of tension: technological development is progressing rapidly, while implementation in companies is much slower.
Every year since 2016, pom Consulting AG has measured the digital maturity of the construction and real estate industry as part of the Digital Real Estate & Construction Study. The Digital Real Estate Index currently stands at 4.3 out of 10 points – a slight recovery compared to the previous year, but definitely not a quantum leap.
Unsurprisingly, artificial intelligence is increasingly coming into focus. According to the latest study, Artificial Intelligence & Machine Learning is once again one of the most frequently used technologies, alongside Platforms & Portals and Data Analytics. However, the assessment of AI is much more differentiated than in previous years: Around two thirds of respondents see a high benefit in it. In last year’s survey, the figure was 75%. With more frequent use of AI, the possibilities of the technology, but also its limitations, are becoming much more visible, making expectations more realistic.
Technology alone therefore does not determine success. The decisive factor remains the organization: data quality, implementation strength, clear responsibilities – and the willingness to question existing ways of working.
Perhaps this is the real parallel to the last 30 years.
Back then, too, it wasn’t just about new technologies, but about new ways of thinking. Artificial intelligence could therefore become the next big development step in the industry – not because it changes everything, but because it helps to better manage the growing complexity of real estate and organizations.