While the Stanford Institute for Human-Centered Artificial Intelligence (HAI) doesn’t specifically focus on the real estate industry, there are plenty of lessons that can be learned. The AI Index collaborates with many organizations, and the report is compiled by an interdisciplinary group from industry and academia. Here are some key takeaways that can be useful for multifamily decision-makers, owners, and managers.
1. There has been a significant increase in demand for AI specialists in Real Estate Rental and Leasing. The number of job postings requiring an AI skill set has grown from 0.65% in 2021 to 0.89% in 2022, in line with a significant increase in almost every industrial sector. We can expect this trend to accelerate with all the advancements in 2023.
2. The proportion of companies using AI has almost doubled from 2017, with a vast majority of these companies reporting significant cost savings and revenue increases directly related to the use of AI. For instance, in sales and marketing, 70% of respondents reported significant improvements in cost savings and revenue increases.
3. AI is being deployed in a multifaceted way, with different AI capabilities used to improve different business units. Notable AI capabilities include Natural Language Understanding (33%), Virtual Agents (33%), Computer Vision (34%), and Robotic Process Automation (39%).
4. Generative AI is breaking into the public consciousness, and interest in these technologies is rapidly increasing. This encompasses everything from large text-to-image models like DALL-E 2, text-to-video AI, and large language model chatbots like ChatGPT. Given the advances in large language models in the last 3 months, we can expect the public to increase use of these technologies.
5. We are seeing that AI is contributing to the creation of better AI. For example, Nvidia reported that using AI allowed them to design better chips tailored to powering AI models. In general, there is a rapid increase in the use of AI to solve problems, which will accelerate the rate of innovation across all industries.
In conclusion, AI is now firmly on the map for industry, and the real estate industry is no exception. The only current barrier is the lack of professionals capable of implementing AI solutions. However, rapid improvements in AI will allow companies to operate with increased efficiency, leading to higher profits. By keeping up with the latest AI trends, multifamily decision-makers, owners, and managers can stay ahead of the curve and benefit from this game-changing technology.