Originally published on February 21, 2024, by Lian Plass for UrbanLand Magazine.

Private enterprise that fails to strategize growth is likely to decline and be usurped by more deliberate competitors. Governments that introduce new policies without ensuring there are enough staff or resources to uphold them won’t be able to put them into practice. Faced with the imperative to run lean but remain agile, many organizations are seeking ways to integrate digital tools powered by generative AI into their workflows to innovate and help alleviate accumulated organizational debt.

A 2023 report by McKinsey posits that generative AI could annually create $110 billion to $180 billion or more in value for the real estate industry, and that real estate companies could gain in excess of 10 percent or more in net operating income (NOI) through more efficient operating models, stronger customer experience, tenant retention, new revenue streams, and smarter asset selection. Overall, the highest-impact functions for generative AI are in sales, marketing, product R&D, software engineering, corporate IT, and customer operations.