The growing use of artificial intelligence in commercial real estate operations isn’t news. Articles, reports, and other information routinely describe how generative AI helps generate reports, analyze documents, and improve marketing activities.
However, a McKinsey report explained that generative AI should make way for agentic AI, which can help improve core business systems and assistance across the four domains of maintenance, leasing and renewals, investments and asset management, and construction and capex.
Two Main Differences
It’s tempting to think that artificial intelligence is a single technology. In truth, AI comes in two types:
- Generative AI relies on machine learning models that analyze patterns and relationships in data and then generate information based on user prompts.
- Agentic AI is a system that can make decisions, act and pursue goals with limited supervision.
- Generative AI needs human prompts to create content pulled from data; it’s a reactive technology.
- Agentic AI is proactive; it takes on assigned tasks, doesn’t depend on prompts and in many cases, doesn’t require human oversight.
The Impact on Four Domains
McKinsey analysts noted that generative AI can improve tasks and operations in the following ways:
- Maintenance. Agentic AI can detect issues (such as leaks) before they become large emergencies, coordinate repairs and communicate with tenants. The result is reduced response times and limited damage.
- Leasing. The technology can schedule tours, process applications, and renew leases. Staff can prioritize tenant relationships to boost renewal rates and accelerate time-to-lease.
- Investments and asset management. Agentic AI can gather data, generate reports, and provide the information needed for decision-making. Investors and asset managers can then work on more strategic portfolio approaches.
- Construction. This AI version helps manage documentation, understands compliance and coordinates construction projects. This helps construction teams identify early risks and ensure projects stay on schedule and in budget.
Strategic Implications and Caveats
McKinsey analysts acknowledged that agentic AI has the potential to improve tenant satisfaction, streamline capital projects and provide higher-level, data-informed asset management capabilities. The technology has the potential to learn and improve from each task, optimizing operations over time.
However, the report cautions that implementation and use take time, commitment, and a “disciplined architecture,” one that includes ownership of data and ongoing learning loops. Additionally, the technology should assist and enhance—not replace—human expertise.
The post Agentic AI: Enhancing CRE Operations in Four Domains appeared first on Connect CRE.
