AI Adoption in Real Estate Faces Growing Pains

AI adoption is accelerating in real estate, but few firms are reaching full success as strategy and infrastructure lag.
AI adoption is accelerating in real estate, but few firms are reaching full success as strategy and infrastructure lag.
  • 88% of investors and 92% of occupiers are piloting AI, with most running an average of five use cases at once.
  • Despite widespread adoption, only 5% of occupiers have achieved all their AI goals; most initiatives remain in experimental stages.
  • Strategic tech and AI advisory tops commercial real estate budget priorities, with cybersecurity and AI infrastructure following closely.
  • Success hinges on robust data platforms, infrastructure, and change management, which many companies still lack.
Key Takeaways

A Tipping Point for AI in CRE

The Institutional Real Estate, Inc. reports that artificial intelligence has moved from buzzword to boardroom agenda in commercial real estate (CRE). According to JLL’s 2025 Global Real Estate Technology Survey, the sector is undergoing a reality check: although nearly 90% of CRE firms are actively piloting AI, only a fraction are seeing full returns.

The report—based on feedback from 1,500+ senior decision-makers across 16 global markets—reveals a clear shift from simple automation to high-impact use cases aimed at generating long-term value.

From Experimentation to Impact

AI in CRE is still in its early stages. Occupiers and investors are both pursuing an average of five AI use cases, spanning everything from operations to tenant engagement. But few have scaled effectively—only 5% of occupiers report reaching all of their goals, while nearly half have met just two to three.

Despite early stumbles, interest and investment in AI are growing. More than half of investors reported budget increases over the past two years, with AI serving as a top driver. Strategic advisory on AI and technology now leads tech spending priorities, along with upgrades to cybersecurity and infrastructure.

What’s Holding Back Progress

Execution challenges stem from a lack of organizational readiness. Successful AI deployment requires more than tools—it demands quality data, internal alignment, and scalable systems. According to JLL, top performers build out foundational capabilities like centralized data platforms and comprehensive roadmaps.

The disparity between those leading and lagging is growing. Companies that embed AI in workflows and invest systematically are starting to pull ahead, while those waiting for clearer returns may find themselves at a competitive disadvantage.

The Clock Is Ticking

With the industry expected to look vastly different by 2030, the message from JLL’s survey is clear: act now or risk being left behind. Over 60% of investors remain underprepared, and occupiers relying on a “second-mover advantage” may find the window for experimentation closing fast.

“Successful AI implementation begins with a clear, strategic vision,” said Sharad Rastogi, CEO of Work Dynamics Technology Group at JLL. “Companies that align technology to business goals and build internal and external capabilities will lead the next phase of CRE.”

The Bottom Line

AI is no longer a future concept in commercial real estate—it’s today’s competitive battleground. While many are experimenting, only those who invest in the right infrastructure, data quality, and change management will translate ambition into advantage.

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