AI vs CRE
The Great Divide
The acceleration of AI we’ve observed since 2022 has triggered gigantic tectonic movements at the interface of technology and real estate.
On one hand, the physicality (brick & mortar) of real estate - atoms fused into bricks, grounded in real, limited physical space. On the other, Artificial Intelligence - algorithms that understand only the binary language of zeros and ones.
On one side, the physicality that carries with it the high cost of digitization, and on the other, AI, which in its cold calculation assumes 10, 50, and 100 trillion parameters.
On one side, a business built on relationships, emotions, and gut feeling. On the other, a relentless statistical machine guided solely by the laws of probability.
On one side - time perceived in days, months, most often quarters. On the other - in milliseconds, where a second feels like an eternity.
The Challenge Ahead
It’s so exciting to be at this junction of tectonic plates! You can feel the earth vibrating beneath you!
What’s our role in what we’re observing? To reduce friction between AI and real estate by building numerous bridges between these two titanic tectonic plates.
However, it won’t be easy - 3,000 years have passed since the first coin was minted, and only in the last 60 years have we replaced physical money with 100 trillion virtual dollars, unsupported by physical metal.
The Race Against Time
Real estate is at the beginning of this digital journey, which is undoubtedly harder than the virtualization of an exchange medium. And time is short because Moore’s law is relentless - if you think today is fast, in 2 years it will be twice as fast.
Because technologies, including AI, grow exponentially. Real estate - 3% annually.
In technology, breakthrough solutions emerge on average every 2 years, and nobody thinks of the ’long term’ as longer than 10 years. How does this compare to the real estate world, where a building, once built, is expected to serve for 50, 70, and 100 years?
The Solution: Digital Transformation
The key to success? Digital transformation.
That’s what REDD does in Poland, and from next year in four more European markets.
Our Goal
We need to fit all commercial properties into a pocket. My mission is to build a digital wallet where property management will be as easy as Apple Pay.
Our Method
How do we do it? We collect data on 6,500 office and warehouse assets. We digitize them, analyze them, and make them available to market participants. In 5 years, we have gathered over 100 million different data points from building parameters, monitoring vacancy rates and available space, to finance and capital market transactions.
Our Impact
Today, thanks to them, we are changing the work of over 100 entities in Poland, who use our tools more than 30,000 times a month. They analyze markets, prepare strategies and offers, verify the environment and competition.
Decision-making. One click away. — that’s the promise of data.
AI Implementation
We implement AI in two areas:
Space AI : A project in which we predict with over 85% accuracy how long a given office space will remain vacant, and what changes the owner can make to increase the chances of quicker rental.
REDD AI : A project carried out with a research grant, in which we collide our real estate valuation data with all market and property parameters, searching for hidden factors affecting property valuation.
The Future Vision
And this is just the beginning because the future of the market is about looking zoom in - zoom out, including intelligent city design.
Imagine…
Information available at your fingertips
Decisions that don’t have to wait for hundreds of spreadsheets
Working on modern tools that create space for human creativity
Buildings that are an integral part of the environment, always effectively used, always with a minimal carbon footprint
Cities that are alive and keep up with the changing world
That’s how I imagine the real estate market I would be proud of.
