There has been a lot of talk about AI transforming real estate and construction. So, what exactly does it mean? 🤔 Below is our take.
Use cases of AI where we see meaningful near-term impact in the built world:
𝟭. 𝗕𝘂𝗶𝗹𝗱𝗶𝗻𝗴 𝗗𝗲𝘀𝗶𝗴𝗻 𝗮𝗻𝗱 𝗣𝗿𝗲𝗰𝗼𝗻𝘀𝘁𝗿𝘂𝗰𝘁𝗶𝗼𝗻: AI tools that automate building design and model generation have the potential to significantly reduce costs related to preconstruction and rework
𝟮. 𝗣𝗿𝗼𝗰𝘂𝗿𝗲𝗺𝗲𝗻𝘁 𝗔𝘂𝘁𝗼𝗺𝗮𝘁𝗶𝗼𝗻: AI-driven procurement systems can minimize material waste and enhance project visibility. Our portfolio company, Field Materials, uses AI to digitize procurement processes, enabling contractors to manage their supply chain with more visibility and less effort
𝟯. 𝗟𝗲𝗮𝘀𝗶𝗻𝗴 𝗮𝗻𝗱 𝗧𝗿𝗮𝗻𝘀𝗮𝗰𝘁𝗶𝗼𝗻 𝗔𝘂𝘁𝗼𝗺𝗮𝘁𝗶𝗼𝗻: AI applications that streamline tenant communication can accelerate leasing and improve tenant satisfaction. Our portfolio company, EliseAI, is a conversational AI assistant that empowers property managers to automate more tasks for their teams, leading to higher prospect conversion and resident engagement
𝟰. 𝗨𝗻𝗱𝗲𝗿𝘄𝗿𝗶𝘁𝗶𝗻𝗴 𝗮𝗻𝗱 𝗗𝗶𝗹𝗶𝗴𝗲𝗻𝗰𝗲 𝗔𝘂𝗴𝗺𝗲𝗻𝘁𝗮𝘁𝗶𝗼𝗻: AI can assist with property acquisitions by abstracting deal information, consolidating market intelligence, and generating financial models and investment memos, helping to evaluate deals more efficiently and reduce diligence expenses
𝟱. 𝗔𝘀𝘀𝗲𝘁 𝗠𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁 𝗮𝗻𝗱 𝗠𝗮𝗶𝗻𝘁𝗲𝗻𝗮𝗻𝗰𝗲: AI can inform asset-level decisions based on comprehensive data analysis (e.g., occupancy and market conditions), optimizing asset management and maintenance strategies. Our portfolio company, VergeSense, uses occupancy data to drive workplace recommendations, informing design and footprint decisions
What differentiates AI solutions in the built world that will scale?
𝟭. 𝗣𝗿𝗼𝗽𝗿𝗶𝗲𝘁𝗮𝗿𝘆 𝗶𝗻𝗱𝘂𝘀𝘁𝗿𝘆 𝗱𝗮𝘁𝗮𝘀𝗲𝘁𝘀: Models that leverage proprietary, industry-specific datasets produce more accurate and relevant outputs for real estate use cases compared to generic AI tools. Precision in the built world is vital for outputs like floorplans, structural designs or legal documents
𝟮. 𝗜𝗻𝘁𝗲𝗴𝗿𝗮𝘁𝗶𝗼𝗻𝘀 𝘄𝗶𝘁𝗵 𝗶𝗻𝗰𝘂𝗺𝗯𝗲𝗻𝘁 𝗽𝗹𝗮𝘁𝗳𝗼𝗿𝗺𝘀: Incumbent systems hold a lot of power in the real estate industry (e.g., Procore in construction or Yardi in property management), so seamless integration with them can reduce friction to adoption, create new distribution channels, and enable automation of workflows
𝟯. 𝗢𝗽𝗽𝗼𝗿𝘁𝘂𝗻𝗶𝘁𝘆 𝘁𝗼 𝗿𝗲𝗽𝗹𝗮𝗰𝗲 𝗹𝗲𝗴𝗮𝗰𝘆 𝘀𝗲𝗿𝘃𝗶𝗰𝗲𝘀: Innovators can leverage AI to automate entire workstreams, replacing traditional services with AI-enabled services that are more efficient. For example, a general contractor can outsource design work to an AI-enabled architect that can autogenerate designs at a fraction of the cost
If you're building or investing in AI solutions for the built world, we'd love to chat!