How will Chat-GPT4 impact the property sector?

I asked Chat-GPT how Chat-GPT4 will impact the property sector. Here’s what it had to say.

Chat-GPT4 could potentially revolutionize the property sector by:

• assisting with lease negotiations and management. Chat-GPT4 could help tenants and landlords communicate more effectively, generating natural language responses to questions about lease terms, rental rates, and other important information
• automating lease management tasks such as lease renewals, rent increases, and tracking lease expiration dates
• providing information on building systems, such as HVAC and lighting, and answering common questions about building policies and procedures
• generating work orders for maintenance and repair tasks, making it easier for facility managers to keep track of maintenance schedules and prioritize tasks
• providing insights into building performance and occupancy data. Chat-GPT4 could analyze data from building sensors and other sources to provide insights into energy usage, occupancy patterns, and other factors that could impact building operations and maintenance
• helping facility managers optimize building performance, reduce energy consumption, and improve occupant comfort
• assisting with portfolio optimization. Chat-GPT4 could analyze data on properties and assets to identify underperforming assets and recommend strategies for improving their performance. For example, it could recommend which assets to divest or which to acquire based on market trends and performance data
• assisting with risk management by analyzing market trends and identifying potential risks to assets. For example, it could generate insights into market conditions and provide recommendations for mitigating risks such as market downturns or changing regulations
• assisting with asset valuation. Chat-GPT4 could analyze data on market trends and property data to generate accurate valuations for assets. This could be particularly useful for investors and developers looking to make strategic decisions about buying or selling properties.

 

My read of this is that GPT4 has the potential to bridge the gap between existing technology and innovations that the property sector already uses to provide more nuanced insights. It allows for us (humans) to quickly link systems together to build a complete picture of asset and lease performance, customer needs, market trends and other external factors to provide more robust analysis and recommendations.

This type of AI allows for us to input key data points (including future strategic direction or growth objectives), to provide tailored insights and support decision-making – the ‘new’ that it offers is pulling in various sources of data that already exist and linking them together to provide a more holistic picture of your property portfolio.

But what does this mean for how we work? If you’re not already leveraging data and new technologies to monitor asset performance, automate operational and transactional activities and inform decision-making it’s unlikely that GPT4 or similar AI products will provide you with any additional value so the impact will be fairly minimal. Although, CoPilot by Microsoft might help you organize your excel spreadsheets and pull some additional value out of it – if you practice good excel and data hygiene.

Essentially, GPT4 has the potential to propel more mature players in property far ahead of those still lagging behind. It won’t remove the need for humans to make decisions, and it won’t remove the need for property managers and executives (perhaps with the support of consultants) to develop strategy and property and asset strategies – but it might help us identify some tactics to consider to implement those strategies if you’ve got good foundations in place.

My two cents: if you’re already behind, and you don’t do anything about modernizing how you deliver your property services, GPT4 is something to worry about. Your competition will have likely made steps to leverage GPT4, and you won’t even be competing in the same weight class anymore.

Pascale Dreyer
Senior Manager