#USA #Chicago #commercial real estate #AI Adoption #JLL survey

The Rise of AI in Commercial Real Estate

Artificial Intelligence (AI) is becoming increasingly crucial in the realm of commercial real estate (CRE). However, a recent survey conducted by JLL highlights that although nearly 90% of companies have begun to pilot AI initiatives, only a mere 5% have managed to meet all of their program objectives. This discrepancy signals a significant gap between aspiration and realization in the industry.

Survey Insights

According to JLL's 2025 Global Real Estate Technology Survey, which involved over 1,500 decision-makers in CRE spanning 16 different markets, the integration of AI is being approached with a fresh strategy. Instead of merely seeking operational efficiency, companies are shifting towards value-driven projects aimed at growth. The survey indicates that an impressive 88% of investors, landlords, and owners have embarked on AI pilots, with many simultaneously pursuing an average of five different use cases.

Budget Growth Amid Challenges

Despite facing economic uncertainties, the appetite for technological investment in real estate remains robust. Over half of the surveyed investors report an increase in their technology budgets over the past couple of years— fueled largely by the recognition of AI's potential to enhance competitive advantage. JLL reveals that strategic advisory on technology and AI has become the top priority for CRE tech budgets, reflecting an industry-wide pivot towards leveraging AI as a tool for longer-term growth rather than just immediate gains.

Challenges in Implementation

While the adoption rate is noteworthy, numerous companies face challenges in effectively scaling their AI initiatives. Many corporate real estate teams are implementing AI not through voluntary foresight but rather due to directives from upper management who view it as an essential element of competitive strategy. However, the survey disclosed that only 5% of organizations successfully accomplished all goals set for their AI programs. In stark contrast, 47% achieved two to three goals, indicating a common trend where many initiatives are still in experimental phases without extensive scaling.

High-Impact Use Cases

JLL's research identified 56 unique AI use cases that could transform every aspect of the CRE value chain. Despite historically being encouraged to start with simpler applications, organizations are indeed prioritizing high-impact areas that align most closely with their current business needs. This established approach signifies that companies are focusing on effectively addressing their most pressing challenges with AI.

The Importance of Foundation

A significant factor contributing to the maturity gap is the organization’s readiness; elements like data quality, infrastructure, and change management processes play pivotal roles in the successful integration of AI into core operations. JLL indicates that successful firms are investing in tailored technology roadmaps and robust data platforms that enable not only foundational applications but also pave the way for more sophisticated AI functionalities.

The Competitive Landscape Ahead

The time window for securing competitive advantages through AI is narrowing. As the CRE landscape evolves, there are growing risks for investors who fail to prepare strategically and technically; over 60% are deemed unready for the changes that AI will bring. Those who hesitate, hoping to capitalize on a 'second mover advantage', may find themselves outpaced by more innovative competitors who are eager to explore the full capabilities of AI.

Final Thoughts

According to Sharad Rastogi, CEO of Work Dynamics Technology Group at JLL, successful AI implementation demands a coherent strategic vision that aligns business goals with technological capabilities. Companies that invest in their foundational capabilities today will find themselves leading the charge as AI reshapes the future of the commercial real estate industry.

In summary, while AI is on the brink of revolutionizing commercial real estate, organizations must act decisively and strategically or risk falling behind in an increasingly competitive environment.