Intelligent by design

Artificial intelligence has been on the rise in commercial real estate for some time. However, the recent explosion in interest, sparked by the adoption of generative AI such as Chat-GPT, has intensified interest like never before.

This rapid advancement is prompting serious questions about the impact of new technologies on commercial real estate and space planning in general. AI is a conversation rife with conjecture, hype, and not a little anxiety.  Considering Open AI has suggested around 80% of jobs in all industries may be disrupted by AI, a high level of curiosity and concern is hardly surprising.

While there is little doubt AI has great potential and most senior leaders are aware of impending disruption, there is limited clarity on the true nature of its opportunities and threats.

In this article I’ll explore some of the emerging applications of AI in space planning, provide some thoughts on its potential opportunities, and finish with a pragmatic perspective on what this means for the business of space planning going forward.

First, a quick definition
AI involves enabling a machine or system to sense, reason, act, or adapt like a human. In other words, simulate human intelligence to solve problems, mimic decision-making and perform complex tasks. AI is powered by machine learning algorithms that allow machines to identify patterns in data, extract knowledge, and learn from it autonomously.

Its great benefit is that it performs tasks, using far greater volumes of data and faster and deeper analysis than humans can; allowing us to take decisions and actions at far greater speed and scale.

AI in space planning
The integration of AI into space planning decision making is already evident across the lifecycle.

A key application is in predictive analytics for property valuation. Given the huge volume of historical and market data, AI models are proving adept at identifying patterns humans may overlook and forecasting property values, so that people can make more accurate and informed investment decisions. Moreover, AI has an important role to play in risk assessment and the optimisation of property portfolios; given its potential to also deal with a multitude of variables, such as economic indicators, market trends and geopolitical factors.

From a strategic insight perspective, AI is already being used to analyse and predict foot traffic patterns and consumer mobility and behaviour in retail spaces. The emerging capability to harness real-time data feeds, from sources such as social media, also means AI powered consumer sentiment analysis, is becoming a powerful tool for identifying emerging trends and behaviours of consequence for the ways we use spaces.This has the potential to transform decisions about the use and branding of spaces, tenant mix, and strategies for maximising commercial returns from locations.

Furthermore, AI-driven insights also have a role to play in the optimisation of spaces, balancing economic, social, and environmental value. For instance, predictive maintenance powered by sensors and AI can anticipate equipment failures and ensuring timely maintenance. Enhancing tenant satisfaction, energy usage, and consumer experience.

AI is also making inroads into the design of spaces, revolutionising the way they are conceived, planned, and executed. Applications include, generative design, where architects use AI tools to explore multiple design options, alongside AI-driven 3D models and realistic visualisations; shortening the time from concept to final design.

Furthermore, AI is already used to analyse vast amounts of data related to sites, such as environmental conditions, sunlight exposure and wind patterns to optimise the placement and orientation of buildings to maximise energy efficiency and comfort.

As a final point, generative AI has enormous potential across the sector. Most organisations sit on vast amounts of information, often fragmented and underutilised. Applying generative AI to proprietary knowledge bases, has the potential to help organisations answer new questions and connect insights in ways never predicted.

These examples are just the tip of the iceberg. There will be many AI use cases across the space planning lifecycle in the coming years and there is little doubt we’re witnessing the start of a revolution.

Human-AI symbiosis
What of the threat from AI? While disruption is inevitable, it is a step too far to suggest AI will cause serious job displacement in the wider industry.

We need to see the integration of AI in space planning as not about replacing decision makers, but rather enhancing their capabilities.  AI serves as a tool that will enhance productivity and complement human expertise. This will allow professionals to focus on high-level strategic thinking and creative problem-solving.
AI provides decision makers with insights that facilitate more informed choices, but the final decisions will still rely on the nuanced understanding that humans bring to the table. Indeed, the synergy between AI and human judgment is likely to lead to more innovative and holistic strategies, resulting in better outcomes overall.

These are exciting times, however as ever we need to add a note of caution. Embracing AI without a firm data strategy and understanding of business priorities, risks investing precious resources without a clear plan.

Those organisations that harness AI most effectively, will be those with a clear-headed understanding of their current data capabilities and a pragmatic approach to improving their overall management of data and analytics. AI depends on strong and well managed data, and solid data capabilities are fast becoming table stakes for any organisation that wants to be part of this revolution.

At Pragma, we’re experts in commercial space planning and data strategy, contact us to find our more how we can help you prepare for a data and AI driven future.

To find out more about our expertise, simply reply to this email and we will be in touch.

James Miller