The Asia Pacific generative AI market size is expected to grow at a compounded annual growth rate of 37.5% from 2024 to 2030, and is likely to contribute around USD 76 billion annually to the economy by 2030, depending on adoption and how workers transition to other tasks, said a report by Colliers.
In a report titled "AI in Corporate Real Estate" Colliers said in Japan, it is estimated that generative AI could unlock JPY 148.7 trillion (around USD 1.1 trillion) in productive capacity. Singapore is expected to be among the leaders of this AI revolution within the region, with AI adoption in Singapore expected to provide economic benefits of up to SGD 198.3 billion (USD 147.6 billion) in 2030.
Singapore tops the list of Asia Pacific countries for AI readiness, according to Salesforce AI Readiness Index 2023, which also revealed that Australia, Indonesia, Singapore, New Zealand, and Thailand have improved their overall AI readiness score since 2021.
On AI's influence on the commercial real estate sector, the report said the influence will undoubtedly be felt, but its timing and extent of impact will differ depending on the specific domain.
"Some segments, like transaction management, present challenges to adoption due to their sensitive nature. In contrast, areas like lease administration and facility management are already witnessing the integration of AI, albeit with a potentially lesser overall impact on the industry," it said.
On the impact of AI on jobs, the report said the extent of AI's impact on job loss and creation varies across industries, and its overall effect remains uncertain. If harnessed correctly and used to augment the industry's roles, AI becomes a vital tool to empower workers.
Further it said that AI will introduce employment opportunities that currently do not exist. Within the realm of CRE, emerging jobs may include Ethicists/Ethics experts, Security Engineers, AI-Enabled Property Managers, AI Trainer/Model Curators, and more.
The report also highlighted five focus areas for AI Implementation.
First is transparency. It said the data across CRE firms and businesses are often non standardised and, most importantly, closely guarded as proprietary information. This systematic hindrance will need to undergo a transformation for CRE companies to utilize AI's full potential.
Second is Comprehensive Data. Limited and biased data in AI applications can lead to varied results; to maximise AI benefits in CRE, comprehensive data across organizations is necessary for accurate benchmarking and trend forecasting, it said.
Third is Governance. The report said for success in the evolving landscape, clients and providers need to create data governance programs or content libraries that support increased data sharing. Data governance programs should focus on minimising risk, ensuring accuracy and consistency, and enabling more effective data utilization.
Fourth is Data Volume. The CRE industry is abundant with data on markets, leases, and transactions, which is vital for training AI systems for intricate tasks. Ensuring this training is not skewed by biased or incomplete data sets is essential for effective AI application.
Fifth is Data Management. Efficiently managing the vast data within the CRE sector is key to maintaining its integrity and ensuring its accuracy and effective use. It also involves regulating access, both granting and restricting it appropriately. Data management contracts between all parties involved are critical to uphold these standards.
