AI Set to Unlock $34B in Efficiencies Across Real Estate by 2030
CREtech
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Artificial intelligence is rapidly reshaping the real estate industry, with Morgan Stanley projecting that 37% of industry tasks could be automated by 2030, generating up to $34 billion in operating efficiencies. From digital receptionists to AI-driven valuation models, real estate firms are integrating technology to streamline staffing, reduce infrastructure costs, and enhance decision-making.
The most impacted job functions include management, sales, administrative support, and maintenance—where AI is being used to reduce labor hours while increasing service quality. For example, some self-storage companies now handle 85% of customer interactions through digital interfaces, while others have cut on-site staffing by 15% without compromising satisfaction.
AI's impact extends beyond labor optimization. It plays an increasingly vital role in managing HVAC systems, implementing solar power, and analyzing risk factors like cash flow, regulatory compliance, and environmental threats. These efficiencies are particularly relevant in high-leverage sectors like lodging, healthcare, and brokerage services. In fact, brokers and service providers may see up to a 34% improvement in operating cash flow thanks to generative AI.
However, the automation trend raises questions about long-term employment impacts. If job displacement outweighs the creation of new tech-driven roles, the resulting labor contraction could dampen real estate demand, particularly in commercial and hospitality segments. Still, analysts remain cautiously optimistic that productivity gains and AI-enabled job creation will counterbalance the risks.
Real estate companies are now at a strategic crossroads: those that embrace AI stand to gain a competitive edge in cost savings and operational agility, while those that don’t may struggle to keep pace in an increasingly data- and tech-driven marketplace.
