The impact of artificial intelligence on the real estate industry came up for discussion in a recent virtual forum hosted by Fordham University’s School of Professional and Continuing Studies and The Business Council of Westchester (BCW).
Dr. Anthony R. Davidson, dean of the School of Professional and Continuing Studies, said, “Artificial intelligence is reshaping the commercial real estate landscape and we want to support business professionals and prepare future industry leaders to leverage AI’s potential.”
The forum was titled “Revolutionizing Real Estate: The Smart Solutions of AI” and featured: Nikki Greenberg, founder and chief innovation officer, Real Estate of the Future; Ravi Bhatia, business development manager, Skanska USA Civil and adjunct professor at the Fordham Real Estate Institute (REI); Sanjay Gandhi, senior managing director of property management at Besen Partners; and Serge Reda, co-founder of AlphaRithm AI and adjunct professor at Fordham REI and chair of its Technology Committee. The discussion was moderated by Dr. Joshua Harris, executive director of Fordham REI and managing partner of Magnolia Hill Partners.
Greenberg noted, “We’re at a turning point in terms of where technology is and the impact it is going to have. Is AI revolutionary? I believe it is. But, while the technology is getting better, human beings should not be flatlining – we all have to evolve along with this. AI is math, not magic. There’s an algorithm behind the scenes, a set of instructions. It relies on information it’s given to make an analysis. If you give it wrong information, it’s going to give you a wrong outcome. We need to be thinking about the quality of data we give to AI to enable it to give us a quality outcome.”
Bhatia saw great opportunities to improve efficiencies and reduce risk through the use of AI.
“We’ve all gone through the supply-chain shocks of a post-Covid world. As information becomes more readily available, there’s going to be more transparency in pricing, in terms and conditions, and in streamlining contracts,” said Bhatia. “That’s huge. If we can reduce transaction costs, improve safety and improve efficiencies in the supply chain, it is going to be game-changing.”
Gandhi said, “A lot of the research tools can be automated, and, if we can reduce transaction costs – that’s great. These are exciting times. But, real estate has been traditionally a hand-shake industry and that is going to be one of the challenges.”
Reda pointed to real estate investing and development as an area where AI could have a significant impact, in terms of identifying opportunities and reducing risks.
“Investing in real estate is an enormous investment so it requires a lot of information and analysis. AI could be extremely impactful in the incorporation of data that humans are just not capable of analyzing on their own. Those who can leverage that kind of capability will have an advantage in the market.”
When it comes to the impact of AI on jobs, Greenberg said, “Jobs are going to evolve. We’re going to learn to use new tools. Some will lean in, others won’t. What we’re going to see with AI is a combination. AI is great at crunching numbers, analysis, very quickly. Humans are great at relationships, trust, ambiguity. Combine them, and you’re super-charged.”
According to Gandhi, “AI can do the back-office work you need to better communicate with your clients, partners and tenants, but it’s not going to replace the human interaction. You still need to be on top of the game.”
Reda said, “As with any new technology, or idea, there are going to be people who adopt it and those who don’t. It’s a choice to learn or not learn. There’s no right or wrong, but AI is here to stay. Those who embrace it and push it forward will enjoy a competitive advantage.”
Marsha Gordon, BCW’s president and CEO, told the forum, “Artificial intelligence is impacting every industry. We’re delighted to partner with Fordham’s School of Professional and Continuing Studies and its Real Estate Institute to explore strategies and innovative solutions to maximize AI’s potential.”
