Artificial intelligence starting to impact back office operations
Artificial Intelligence is a family of technologies that can be categorized in five broad terms: natural language, virtual assistants, robotic process automation (RPA), machine learning and computer vision.1
Exhibit 1: Artificial Intelligence is a family of technologies that can be categorised in five broad terms
Source: Notes from the AI Frontier. Modeling the Impact of AI on the World Economy McKinsey Global Institute. September 2018
Based on survey results concerning the deployment of Artificial Intelligence Initiatives in 2018, Gartner determined that 35% of surveyed Chief Information Officers have AI on their radar but did not make any commercial plans to adopt it. Roughly ¼ of CIO’s are considering AI in their short-term plans and/or are actively experimenting with the technology.2 This proportion is in stark contrast to findings from McKinsey Global Institute, which predicts that 70% of companies will adopt at least one type of AI technology by 2030.3 So what are the possible applications of artificial intelligence in the real estate industry?
Exhibit 2: How Artificial Intelligence is used in the real estate industry:
- Chatbots: Answer common questions, book appointments, and get quotes on a lease
- Property Management: Monitor and predict the replacement of maintenance systems, and implement energy saving strategies in buildings to optimize costs
- Deal Matching: An investor can set his investment criteria and be notified when a deal is closed
- Investor Analytics: AI can monitor growth targets pre-set by an investor who can then assess risks
- Due Diligence: The automated scanning of documents can greatly reduce the time it takes to manually read and scan documents for red flags
- Valuation: Based on metrics such as location, age of constructions, and the number of rooms, among other factors, AI can assist with building valuation and can assess the long-term value of new listings
Source: Global Knowledge Center Research
The strength of artificial intelligence lies in its ability to carry out repetitive tasks, such as chatbots that can answer the most common questions from clients.
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Resources
- Bughin, J., Seong, J., Mayika, M., Chui, M., Joshi, R. (2018). Notes from the AI Frontier. Modeling the Impact of AI on the World Economy. McKinsey Global Institute. September 2018. Available at: https://www.mckinsey.com/featured-insights/artificial-intelligence/notes-from-the-ai-frontier-modeling-the-impact-of-ai-on-the-world-economy [Accessed: October 23, 2018].
- Goasduff, L. (2017). 2018 Will Mark the Beginning of AI Democratization. Gartner. December 2017. Available at: https://www.gartner.com/smarterwithgartner/2018-will-mark-the-beginning-of-ai-democratization/ [Accessed: October 23, 2018].
- Bughin, J., Seong, J., Mayika, M., Chui, M., Joshi, R. (2018). Notes from the AI Frontier. Modeling the Impact of AI on the World Economy. McKinsey Global Institute. September 2018, p. 3 Available at: https://www.mckinsey.com/featured-insights/artificial-intelligence/notes-from-the-ai-frontier-modeling-the-impact-of-ai-on-the-world-economy [Accessed: October 23, 2018].
