Australia's Commercial Real Estate Sector Poised for Tech-Driven Transformation

The Australian commercial real estate (CRE) sector is on the cusp of a significant technological transformation, driven by the increasing adoption of artificial intelligence (AI).
By 2025, it's estimated that those not utilizing AI will find themselves in the minority, as traditional industries recognize the technology's potential to drive meaningful efficiency and innovation.
The CRE industry is also likely to witness the emergence of new roles, such as a Chief Ethics Officer or similar governance positions, to ensure AI applications don't replicate past biases but instead promote fairness and transparency.
A study has revealed that organizations now need to rethink diversity at the board and executive levels to create a robust ecosystem of skills, expertise, people, processes, technology, and data, which provides a true competitive advantage in the sector.
Historically, technology has been seen as a cost centre; however, companies have demonstrated that when leveraged correctly, technology can transform into a significant revenue generator.
Investing in the right tools isn't just about operational efficiency – it's about retaining and attracting the best people who can propel the organization forward. According to Stacey Walker, Head of Consulting and Pre-sales for Asia-Pacific, this is crucial as employees today are more tech-savvy than they were five or ten years ago.
These employees are gravitating toward companies that invest in technology, as modern tools make their jobs easier and more impactful. When organizations fail to prioritize technology that enhances the employee experience, they ultimately lose out on top talent.
The Australian CRE sector is expected to undergo significant changes by 2025, driven by advancements in technology and AI. Key players are adopting a "work smarter, not harder" mantra with the help of big data and big tools.
Stacey Walker believes that companies in Australia need to get their data right before diving into AI. Applying artificial intelligence to bad data is akin to handing someone the wrong map and sending them into the wilderness – you're setting them up to reach the wrong destination.
Another challenge lies in how organizations view technology, with a historical mindset seeing it as a cost centre. Companies like Amazon have demonstrated that when leveraged correctly, technology can transform into a significant revenue generator.
It's essential for all stakeholders to understand that investing in the right tools isn't just about operational efficiency but also retains and attracts top talent who can propel organizations forward.
According to Walker, these changes will be generationally driven by those who have grown up with technology and are comfortably leveraging AI to supercharge their careers and personal outcomes.